Infineon: shares rise after results better than feared

(CercleFinance.com) - German chipmaker Infineon delivered quarterly results and forecasts that were not as bad as feared, lifting its shares in Frankfurt this morning.


The company - which makes products including car chips and sensors - said second-quarter sales were flat at almost 2 billion euros, as it has been able to maintain operations in recent weeks.

However, its operating profit fell to 178 million euros, down 29% year-on-year, with a gross margin of 34.5% in the quarter to 31 March, down from 37% in the previous quarter.

A trader called the figures "better than feared".

Nevertheless, the outlook for the second half of the fiscal year has significantly deteriorated, the Munich-based group said, which now expects a "sharp" drop in revenue in its automotive business.

Infineon shares were up 3.5% after the results, one of the biggest winners in Germany's blue-chip DAX index, which was trading up 1.8%.

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