Infineon Technologies, a leading German chip maker, has revised its sales forecasts for fiscal 2024 due to prolonged weak demand for chips in personal electronics such as computers and smartphones.
Lowered Sales Expectations
The company now aims for approximately €16 billion ($17.19 billion) in sales for the year ending in September, which represents a 2% decrease from fiscal 2023. Furthermore, Infineon expects its segment result margin, a crucial profitability metric, to be in the low to mid-20s percentage range, compared to the 27% recorded in fiscal 2023. Previously, the group had predicted revenue of roughly €17 billion and a segment result margin of about 24%.
Q1 Performance
In the first quarter of the fiscal year, ending in December, Infineon reported revenue of €3.70 billion, a slight decline from €3.95 billion in the same period the previous year. Net profit also decreased from €728 million to €587 million, with the segment result reducing from €1.11 billion to €831 million, equating to a margin of 22.4%.
Analyst Expectations
Analysts had anticipated revenue of €3.82 billion and a net profit of €549 million for the first quarter, with a segment result of €826 million, according to FactSet. Infineon’s own expectations were slightly lower, with projected quarterly revenue of around €3.8 billion and a segment result margin of approximately 22%.
Outlook for the Current Quarter
In the current quarter through March, Infineon forecasts revenue of roughly €3.6 billion and a segment result margin of about 18%.
