Infineon swings into profit, pays first dividend since 2001

Nov 16, 2010

German chip maker Infineon Tuesday posted a healthy profit for its fiscal year 2010 and rewarded its shareholders by paying out its first dividend for nine years.

Profits for the fiscal year to September 2010 were 659 million euros (895 million dollars), the technology giant said, compared to a loss of 626 million euros the year before.

For the , the firm smashed market expectations with profits of 390 million euros. Analysts surveyed by Dow Jones Newswires had forecast a profit of 213 million euros.

Annual sales hit 3.3 billion euros, up by more than 50 percent over the year. Fourth-quarter sales were 942 million euros.

"The company's growth during this upcycle remains significantly ahead of the market and our profitability has risen yet again," said Peter Bauer, Infineon's chief executive, in a statement.

Shareholders received a dividend of 0.10 euros per share due to the firm's "favourable operating performance" and "comfortable cash position", the statement added.

said it expected sales growth of "close to 10 percent" in 2011, depending on exchange rate developments.

It said the first quarter of the new would be "flat to down slightly" compared to the fourth quarter of 2010.

Investors welcomed the result, pushing Infineon stock to the top of the gainers on Germany's DAX . At 0830 GMT, the stock was up 1.13 percent while the wider market was down 0.63 percent.

Explore further: Starbucks: Computer outage disrupts sales in US, Canada

Related Stories

ASML announces 151 mln euro net loss for 2009

Jan 20, 2010

Dutch company ASML, a key supplier of computer chip-making systems, reported a 151-million-euro (214-million-dollar) net loss for 2009 despite making a 50-million-euro fourth quarter net profit.

'Collapse' in semiconductor demand hits ASML

Jul 15, 2009

Dutch computer chip equipment maker ASML announced net losses for the first quarter after a collapse in sales, but said it saw signs of improving market conditions.

Recommended for you

How smart are the mobile shoppers who use smartphones?

Apr 24, 2015

In the age of the smart phone, how smart are the mobile shoppers who use these almost ubiquitous devices? A study from South Korea published in the International Journal of Mobile Communications hopes to answer that questi ...

India's Infosys gives muted earnings, stock falls

Apr 24, 2015

Indian software giant Infosys Technologies saw its shares dip nearly seven percent Friday after it reported a single digit rise in yearly revenues and also missed quarterly profit estimates.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.