BERLIN, May 7 — Profits fell by a half at German semiconductor maker Infineon Technologies, according to quarterly results published today, reported dpa news.
The firm reported that its second-quarter profit fell by 52 per cent to €394 million (US$424 million) from last year’s €826 million.
Earnings per share declined to €0.30 from €0.63 a year ago. Adjusted earnings per share were €0.42, compared to last year’s €0.69.
In the second quarter, Infineon generated Group revenue of €3.63 billion, down 12 per cent from last year’s €4.12 billion. Revenues fell 2 per cent sequentially.
For the third quarter, the company expects revenue of around €3.8 billion.
For fiscal 2024, Infineon trimmed its forecast citing prolonged weak demand in major target markets as well as ongoing destocking at direct customers and distributors.
Revenue for the year is now expected to be around €15.1 billion, plus or minus €400 million, while previously it was expected to be €16 billion, plus or minus €500 million.
The Segment Result Margin is now expected to be around 20 per cent, at the mid-point of the guided revenue range, while the previous view was in the low to mid-twenties percentage range.
Adjusted gross margin will be in the low-forties percentage range, while previously it was expected in the low to mid-forties percentage range.
Infineon mentioned that it is starting the “Step Up” programme focusing on a targeted, sustainable improvement of its cost structure.
The programme is expected to have a positive effect on the Segment Result in the high triple-digit million euro range per year.
The first financial benefits are expected in the course of the 2025 fiscal year, with the full effect expected to show in the first half of the 2027 fiscal year. — Bernama-dpa
