SCENARIOS | Covid-19: Infineon withdraws 2020 forecasts

Developments in the situation caused by Covid-19 do not allow for long-term visibility and Infineon is withdrawing its forecasts for the 2020 financial year.

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The pandemic from Covid-19 pandemic is having a serious impact on supply chains, end markets and economies globally. Developments in the situation do not allow for long-term visibility, and for this reason Infineon withdraws its forecast for fiscal year 2020.

The company had originally anticipated revenue growth of 5% year on year but the impact of the Coronavirus may result in a deviation from expectations and lead to a significant drop in revenue compared to the previous fiscal year. The effects of fiscal and monetary measures taken by governments and central banks will not be seen immediately.

"In the long term, however, the drivers of structural growth - e-mobility, IoT and renewable energies - remain intact, and may even accelerate once the Covid-19 crisis has passed"., say Infineon's management, which is monitoring the situation closely and has set up an ad hoc crisis unit.

Some areas of the business are holding up, however, such as data centre and communications products, driven by increased data traffic and online collaboration. Infineon will give an update on the business situation on May 5, in its earnings call for the next quarter.

 

 

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