Full-year operating profit surged 62 per cent at Infineon Technologies (Ge: IFX) as the power-semiconductor specialist benefited from strengthening global demand for vehicles and rising electronics content in cars.
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Infineon's key automotive segment posted a 55 per cent rise in divisional profit to €259m (£206m). Together with the imminent acquisition of International Rectifier, that gave management the confidence to guide towards revenue growth of 8 per cent this year.
One concern may be rising costs, as analysts expect high depreciation and operating expenses to pressure Infineon's margins for the next few years. That trend prompted broker Liberum to cut its full-year EPS forecast by 14 per cent to 0.47 (2014: 0.44¢).
