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: Apple set to shut down Beats music service: report

add to favorites email to friend print save as pdf

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

Line says no IPO this year

13 hours ago

The Japan-based operator of popular mobile messaging app Line said Monday it has decided not to go ahead with an initial public offering in Japan or overseas this year.

User comments : 0