By Mauro Orru
Infineon Technologies lowered its sales forecasts for fiscal 2024 as the group reckons with months of weak demand for chips in personal electronics such as computers and smartphones.
The German chip maker said Tuesday that it is aiming for around 16 billion euros ($17.19 billion) in sales for the year ending in September, down about 2% from fiscal 2023. Its segment result margin–a key profitability metric–is expected in the low to mid-20s percentage range compared with 27% in fiscal 2023. The group had previously guided for roughly EUR17 billion in revenue and a segment result margin of about 24%.
Infineon posted revenue of EUR3.70 billion for the three months to the end of December compared with EUR3.95 billion in the previous year’s fiscal first quarter.
Net profit slipped to EUR587 million from EUR728 million, while its segment result contracted to EUR831 million from EUR1.11 billion, generating a 22.4% margin.
Analysts had forecast revenue of EUR3.82 billion and a net profit of EUR549 million, with a segment result of EUR826 million, according to FactSet. Infineon had expected quarterly revenue of around EUR3.8 billion and a segment result margin of around 22%.
For the current quarter through March, Infineon expects revenue of roughly EUR3.6 billion and a segment result margin of about 18%.
Write to Mauro Orru at mauro.orru@wsj.com
