IFNNY Infineon Technologies AG (QX)

By Mauro Orru

Infineon Technologies AG on Thursday posted higher profit and revenue for the first quarter of fiscal 2022 and raised its targets as demand for semiconductors continues to outstrip supply.

The German chip maker said net profit for the three months ended Dec. 31 climbed to 457 million euros ($516.7 million) from EUR256 million a year earlier.

Revenue for the quarter rose to EUR3.16 billion from EUR2.63 billion.

"Overall, demand for semiconductors is outstripping supply by far. Electrification and digitalization continue to drive substantial growth in our target markets," outgoing Chief Executive Reinhard Ploss said.

The company's segment result--a closely-watched metric comparable to adjusted earnings before interest and taxes--rose to EUR717 million from EUR489 million, with its segment result margin, or adjusted EBIT margin, up to 22.7% from 18.6%.

Infineon had expected first-quarter revenue of around EUR3 billion and an adjusted EBIT margin of around 21%.

"We expect the supply situation in some application areas to remain tight well into the current calendar year," Mr. Ploss said.

For the second quarter, the company is targeting revenue of around EUR3.2 billion, and an adjusted EBIT margin at around 22%.

Infineon raised its forecasts for the fiscal year, and now expects revenue of EUR13 billion, plus or minus EUR500 million. It previously targeted revenue of EUR12.7 billion.

It also expects an adjusted EBIT margin of about 22% at mid-point of its revenue forecast, rather than 21% as previously expected.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

February 03, 2022 02:10 ET (07:10 GMT)

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