Chipmaker Infineon has beaten median market forecasts about its quarterly operating profit.

In an update this morning, the company posted a fiscal first quarter profit of €116 million (£70.1 million), beating market forecasts in the range of €93 million to €96 million.

While profits were down on the previous quarter in an industry ridden with seasonal fluctuations, Infineon maintained profitability on the back of greater demand from the auto industry for its semiconductors.

The company said its revenue for the three months to December-end was down by 7% coming in at €984 million. However, its operating margin was significantly better than expected, rising by 11.8% between October and December 2013.

Infineon chief executive Reinhard Ploss said: "Earnings were benefitting from the efficiency measures undertaken at our manufacturing facilities."

Ploss also expressed optimism about the current fiscal year as orders from customers were seen improving on the back of a global economic recovery.

The Infineon CEO said he was confident the chipmaker would reach its goal of an 11% rise in revenue and an operating margin of up to 14% for the financial year.