* Q2 operating profit 146 mln eur vs poll avg 129 mln
* CEO says order books filling up nicely
* Sees Q3 revenue up 4-8 pct quarter-on-quarter
* Shares jump 5.5 percent
(Adds live share price, analyst comment, profit margin)
By Maria Sheahan
FRANKFURT, April 29 German chipmaker Infineon
toned up its outlook for the year on Tuesday as it
published consensus-busting quarterly financial results, buoyed
by robust demand from automotive and industrial customers and
sending its shares higher.
Infineon, whose chips activate airbags, enable cruise
control and cut vehicle emissions, is investing to answer
growing demand from automotive and industrial customers such as
engineering group Siemens, benefiting from an
improving global economy and a recovery of European car markets.
It said it now saw revenue growth and its core operating
margin for the financial year through September reaching at
least the upper end of its target ranges of between 7 and 11
percent and 11 to 14 percent, respectively.
That is in line with analyst consensus for a sales increase
of 10.6 percent and a margin of 13.5 percent, according to a
"Infineon is in an excellent position to grow
disproportionately in the next quarters," DZ Bank analyst Harald
Schnitzer said, citing expected growth in the automotive and
Shares in Infineon were up 5.5 percent at 8.60 euros by 0752
GMT, at the top of Germany's blue-chip DAX index, which
was 0.8 percent higher.
Operating profit for Infineon's fiscal second quarter,
excluding special items, more than doubled to 146 million euros
($202.1 million) from a year-earlier figure of 68 million,
beating even the most optimistic estimate in the Reuters poll.
Its core operating profit margin widened to 13.9 percent
from 7.4 percent in the year-earlier quarter thanks to
above-average business from German premium automakers and demand
for industrial drives and traction.
Infineon now gets almost half of its sales from the
automotive sector, tapping into a $24 billion market and
counting Continental, Robert Bosch,
Mitsubishi Motors and South Korean carmaker Hyundai
Motor Co among its customers.
Revenue rose 14 percent to 1.05 billion euros as sales of
chips for the automotive and industrial sectors grew by 14
percent and 28 percent, respectively.
"Demand for our products is strengthening and our order
books are filling up nicely," Chief Executive Reinhard Ploss
said in a statement, adding the company had a positive order
backlog across all its businesses.
Infineon said it expected revenue to rise by between 4 and 8
percent quarter-on-quarter in the three months through June,
with a core operating profit margin of 14-16 percent.
($1 = 0.7223 Euros)
(Editing by David Holmes and Sophie Walker)