+44 (0)24 7671 8970
More publications     •     Advertise with us     •     Contact us
 
Loading...
News Article

Infineon posts solid Q2

News

But prolonged weak demand in leads to a lowering of the forecast for the fiscal yearBut prolonged weak demand in leads to a lowering of the forecast for the fiscal year

Infineon Technologies has reported what is says are solid results for the second quarter of the 2024 fiscal year (period ended 31 March 2024). Revenue was €3.632 billion, segment result was €707 million, and segment result margin was 19.5 percent.

But prolonged weak demand has meant that the company has lowered its forecast for the fiscal year.

"In the prevailing difficult market environment, Infineon delivered a solid second quarter”, said Jochen Hanebeck, CEO of Infineon."Many end markets have remained weak due to economic conditions, while customers and distributors have continued to reduce semiconductor inventory levels. Weak demand for consumer applications persists. There has also been a noticeable deceleration in growth in the automotive sector."

He continued: "We are therefore taking a cautious approach to the outlook for the rest of the fiscal year and are lowering our forecast. In the medium to long term, decarbonization and digitalisation will continue to be strong structural drivers of our profitable growth. In order to realise the full potential of our company, we will further strengthen our competitiveness. To this end, we are launching the company-wide "Step Up" program. We are aiming to achieve structural improvements in our Segment Result in the high triple-digit million euro range per year.”

Outlook

Outlook for Q3 2024, based on an assumed exchange rate of $1.10 to the euro, is a revenue of around €3.8 billion. On this basis, the segment result margin is forecast to be in the high-teens percentage range.

Outlook for the full year 2024, based on an assumed exchange rate of $1.10 to the euro, is a revenue of around €15.1 billion plus or minus €400 million (previously €16 billion plus or minus €500 million), with a segment result margin of around 20 percent (previously in the low to mid-twenties percentage range) at the mid-point of the guided revenue range.

Adjusted gross margin will be in the low-forties percentage range (previously in the low to mid-forties percentage range). Investments are planned at around €2.8 (previously around 2.9 billion). Adjusted free cash flow of about €1.6 billion (previously €1.8 billion) and reported free cash flow of about €0 million (previously about €200 million) are now expected.


×
Search the news archive

To close this popup you can press escape or click the close icon.
Logo
×
  • 1st January 1970
  • 1st January 1970
  • 1st January 1970
  • 1st January 1970
  • 1st January 1970
  • 1st January 1970
  • 1st January 1970
  • 1st January 1970
  • View all news 22645 more articles
Logo
×
Register - Step 1

You may choose to subscribe to the Power Electronics World Magazine, the Power Electronics World Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: