By Reuters | Updated: August 5, 2024
BERLIN, Aug 5 (Reuters) – German chipmaker Infineon (IFXGn.DE) adjusted its full-year revenue outlook for the third time in the space of a few months on Monday after missing expectations in its third quarter due to sluggish demand.
The company reported revenue of 3.702 billion euros ($4.04 billion) for the April-June period, falling short of the 3.8 billion forecast in a company-provided consensus and down 9% on the year.
Infineon now expects full-year revenue of around 15 billion euros, having already twice lowered guidance, most recently to an expected 15.1 billion euros, plus or minus 400 million euros.
Its shares fell 4.5% in early Frankfurt trade.
“The recovery in our target markets is progressing only slowly. Prolonged weak economic momentum has resulted in inventory levels in many areas overlaying end demand,” said Infineon Chief Executive Jochen Hanebeck.
The company maintained its outlook for the segment result margin, management’s preferred measure of operating profitability, after it came in above expectations at 19.8%.
“In a market environment that remains challenging, Infineon continues to hold up well,” said Hanebeck.
A cost savings programme, announced in May, should start to have a positive result on the segment, or adjusted, result beginning in the company’s 2025 fiscal year, added Hanebeck on Monday.
Infineon joins the ranks of chipmakers battered by weak demand, with rival chipmaker STMicroelectronics (STMPA.PA) cutting its full-year revenue and margins guidance, and U.S. heavyweight Intel INTC.O suspending dividends and slashing its workforce to fund a costly turnaround for its chips business.
@ Thomson Reuters 2024
