Infineon: Q4 is up to standard and is feeling the impact of weak global automotive demand

According to foreign media reports, global semiconductor company Infineon announced on the 12th of the fourth quarter of 2019 (as of September 30, 2019), and said that despite the company's macroeconomic, uncertain factors and weak global automotive demand. The impact, but the fourth quarter profit is still rising.

According to the financial report, Infineon Q4 revenue increased by 1% (2% quarterly) to 2.062 billion euros; gross profit margin decreased from 39.8% to 35.5%; and the profit margin of the company's vital department decreased from 19.5%. To 15.1%; net profit increased by 14% (28% quarterly) to 161 million euros (about 177.6 million US dollars).

Infineon CEO Reinhard Ploss said that Infineon is feeling the impact of weak global auto demand and expects no improvement in the short term. He added that he expects the market will not recover before the second half of the fiscal year.

At the same time, Reinhard Ploss also said that the semiconductor market will show signs of recovery in 2020, and this news also caused the German chip maker's share price to rise.

Looking ahead, if we calculate the exchange rate of 1 Euro to 1.13 US dollars, Infineon estimates that the first quarter of 2020 revenue will be reduced by 7% (± 2 percentage points); 2020 annual revenue will increase by 5% (± 2 percentage point).