Infineon Cuts Chip Sales Guidance Again Amid Automotive Market Slowdown
By Nina Kienle
Infineon Technologies lowered its sales forecasts for fiscal 2024 for the second time this year as it grapples with slower growth in the automotive sector.
The German chip maker said Tuesday that it is aiming for around 15.1 billion euros ($16.26 billion) plus or minus EUR400 million in sales for the year ending in September, down from EUR16.31 billion of fiscal 2023. Its segment result margin--a key profitability metric--is expected at around 20% compared with 27% in fiscal 2023. The group had previously guided for roughly EUR16 billion in revenue and a segment result margin in the low to mid-20s percentage range.
The company reported revenue of EUR3.63 billion for its fiscal second quarter through the end of March compared with EUR4.12 billion a year earlier.
Net profit fell to EUR394 million from EUR826 million, while its segment result dropped to EUR707 million from EUR1.18 billion, generating a 19.5% segment result margin.
Analysts had forecast revenue of nearly EUR3.60 billion and a net profit of EUR397.34 million, with a segment result of EUR647.67 million, according to consensus estimates compiled by Visible Alpha.
Write to Nina Kienle at nina.kienle@wsj.com
(END) Dow Jones Newswires
May 07, 2024 02:14 ET (06:14 GMT)
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