IFNNY Infineon Technologies AG (QX)

By Mauro Orru

Infineon Technologies AG assumes the euro will average 1.05 against the dollar until the end of September, meaning the single currency isn't expected to regain its strength over the greenback anytime soon.

The German chip maker's forecast is lower than a 1.10 estimate it had made in early May for its fiscal third quarter ending June 30. The euro last month slipped below parity with the U.S. dollar, reflecting Europe's sinking economic fortunes in the face of the war in Ukraine.

"Based on an assumed exchange rate of US$1.05 to the euro, Infineon expects to generate revenue of around €3.9 billion in the fourth quarter of the 2022 fiscal year," Infineon said Wednesday. Infineon's fourth quarter closes at the end of September.

The euro currently trades at $1.0189.

Infineon's latest forecast is lower than a 1.09 assumption by peer chip maker STMicroelectronics NV last week. STMicroelectronics based its guidance for the quarter closing Oct. 1 on a 1.09 exchange rate against the dollar.

The euro has been on a steady decline this year as investors girded for Russia to enact a full-blown gas cutoff that many fear will drive the region into a deep recession.

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

(END) Dow Jones Newswires

August 03, 2022 06:00 ET (10:00 GMT)

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