Infineon sees 2013 profit beating target by a fifth: report

Reuters News
Posted: Sep 22, 2013 6:47 AM

BERLIN (Reuters) - German chipmaker Infineon expects to beat its profit target by about a fifth this financial year as demand from industrial customers is improving, Boersen-Zeitung reported, citing company finance chief Dominik Asam.

"We will most likely earn about 20 percent more profit than previously planned in the 2013 fiscal year (ending September 30)," the newspaper quoted Asam as saying in an interview published on Sunday.

"After two years of stagnation, a recovery is on the horizon for the global semiconductor industry," the CFO told the newspaper.

Asam did not provide a profit figure, nor say what the company had been expecting. A spokesman was not immediately available for comment.

Still, the company, whose chips activate airbags, enable cruise control in cars and cut emissions, may not reach a goal of 5 billion euros ($6.8 billion) of sales until 2016, a year later than originally planned, Asam said, citing the effects of the European debt crisis.

Infineon may reach its long-term goal of a 15-percent operating profit margin in three years time, the CFO added.

($1 = 0.7402 euros)

(Reporting by Andreas Cremer; Editing by Mark Potter)