* Cuts 2017/18 mid-point revenue growth outlook to 5 pct
* Blames weaker U.S. dollar, new forecast sees euro at $1.25
* Automotive business shows sequential growth in Q1
* Shares off by 2.5 pct (Adds detail on outlook, segment performance, shares)
FRANKFURT, Jan 31 (Reuters) - German chipmaker Infineon , the top supplier of power controls to auto and industrial markets, cut its revenue guidance for the 2017/18 financial year due to U.S. dollar weakness as it reported in-line quarterly sales.
Munich-based Infineon now expects revenues to grow by 5 percent, plus or minus 2 percentage points, in the year to Sept. 30, assuming a euro exchange rate of $1.25. That’s down from a prior forecast of 9 percent growth at the top line.
That contrasts with a more bullish outlook at rival STMicroelectronics, which competes with Infineon in the automotive sector, among others.
Shares in Infineon fell 2.5 percent to the bottom of the German blue-chip DAX index in pre-market trade at brokerage Lang & Schwarz.
CEO Reinhard Ploss, in a statement, played up Infineon’s performance in the first quarter, which is traditionally seasonally weak, but said currency headwinds had to be taken into account.
“We are unable to compensate a further depreciation of the US$ by another 8 percentage points, which negatively affects more than half of our revenues. As such, we currency-adjusted our outlook accordingly,” he said.
Infineon gave a mid-point outlook of 4 percent sequential revenue growth in the second quarter and said it expected a segment result margin, a measure of core operational profitability, of 16 percent.
The segment result margin came in at 15.9 percent in the first quarter, down from 18 percent in the prior quarter but up from 15 percent in the same period a year earlier.
Infineon’s first-quarter revenues came in at 1.78 billion euros, compared with a consensus forecast of 1.79 billion euros, according to 15 analysts. That represented a quarter-on-quarter decline of 2 percent.
Its industrial power control, power management and security segments all showed seasonal drops in revenues while automotive achieved sequential growth thanks to demand in the electric vehicle sector. ($1 = 0.8035 euros) (Reporting by Douglas Busvine; Editing by Maria Sheahan)