INTERVIEW: Infineon CFO: Chip Demand Up; To Meet 4Q Views
30 Settembre 2009 - 3:50PM
Dow Jones News
The semiconductor sector has passed the worst of the slump,
demand is growing and there is better visibility, but it will take
years to return to pre-financial crisis sales levels, according to
German chip maker Infineon Technologies AG's (IFX.XE) Chief
Financial Officer Marco Schroeter.
"In the last four to six weeks the situation has changed,"
Schroeter, who is also a member of Infineon's management board,
said in a recent interview with Dow Jones Newswires, echoing more
positive recent comments from firms across the sector.
Earlier this month Dutch semiconductor equipment maker ASML
Holding NV (ASML.AE) raised its sales expectations for the
September and December quarters, as did industry heavyweight Texas
Instruments Inc. (TXN) for its September quarter.
Demand, especially from industrial and automotive customers, has
increased, Schroeter said. Moreover, "we now have visibility into
the next two quarters and it looks better than six weeks ago," he
said. "However, quarterly growth rates could flatten in the second
quarter," but won't see such a sharp declineas in the first fiscal
quarter of 2009, which ends Dec. 31, he added.
Infineon supplies logic chips used in the communications,
automotive and industrial sectors. Its products are also used for
passports and chips used on cell-phone SIM cards and credit
cards.
Still, it could take three years until Infineon reaches the
sales level prior the crisis, Schroeter said, but the signs are
encouraging.
Infineon's book-to-bill ratio now stands at above 1 times, up
from a floor of 0.6 times in the December quarter last year,
Schroeter said.
As a result of the improved conditions, Infineon has now
scrapped the shorter working hours previously brought in to
mitigate the effects of the slump and factory utilization has
recovered to almost full utilization from the levels of around
40%-60% seen in recent months, he said.
Referring to Infineon's fourth quarter results for the period
ending Sept. 30, Schroeter said: "We won't disappoint market
expectations," without elaborating.
According to a poll of Dow Jones Newswires of three analysts,
fourth quarter operating profit of EUR28 million and sales of
EUR832 million are expected. Estimates exclude Infineon's wireline
operations.
Infineon said in July it will sell its wireline operations to
U.S. private-equity firm Golden Gate Capital LLC for EUR250 million
and the closing of the transaction is expected within the next few
weeks.
After a recent capital increase in which Infineon raised EUR725
million the Neubiberg, near Munich-based company will be able to
refinance its debt and has built up a solid cash position.
Schroeter said the company has no acquisition targets in mind
right now, but might consider an acquisition after a minimum of
two-to-three quarters of strong operating performance.
Meanwhile, Schroeter poured cold water on recent market
speculation that Russian conglomerate AFK Sistema (AFKS.RS) might
take a major stake in Infineon.
"We were in talks with Sistema earlier this year," Schroeter
said, "but after the successful completion of our rights offering
in August we are currently no longer in talks for an investment
from an anchor shareholder into the company."
Company Web site: www.infineon.com
-By Archibald Preuschat, Dow Jones Newswires, +49 211 138 7218,
archibald.preuschat@dowjones.com