Infineon Technologies, a renowned German chip maker, has found itself readjusting its sales projections for fiscal 2024, marking the second such revision this year. The reason behind this recalibration lies in the sluggish growth observed within the automotive sector, a critical market for the company’s semiconductor products. On Tuesday, Infineon Technologies unveiled its new target sales figure for the fiscal year ending in September, aiming for around 15.1 billion euros ($16.26 billion), give or take EUR400 million. This projection represents a notable decline from the previous fiscal year’s revenue of EUR16.31 billion. Moreover, the company has adjusted its segment result margin, a key measure of profitability, to approximately 20%, down from the robust 27% recorded in fiscal 2023. Initially, the company had set its sights on achieving revenues of approximately EUR16 billion, with a segment result margin expected to fall within the low to mid-20s percentage range.
The fiscal second quarter results, covering the period up to the end of March, reflected this challenging environment. Infineon Technologies reported revenue of EUR3.63 billion, signaling a decrease from the EUR4.12 billion recorded during the corresponding period in the previous year. This decline in revenue was accompanied by a substantial drop in net profit, which fell to EUR394 million from EUR826 million, as well as a decrease in segment result to EUR707 million from EUR1.18 billion. Consequently, the segment result margin contracted to 19.5%.
Analysts, relying on consensus estimates compiled by Visible Alpha, had anticipated slightly different figures for the fiscal second quarter. Their projections envisioned revenue hovering around EUR3.60 billion, with a net profit of EUR397.34 million and a segment result of EUR647.67 million. The actual results, however, fell slightly short of these expectations.
Overall, the adjustment in sales forecasts and the financial performance of Infineon Technologies underscore the ongoing challenges faced by the company within the automotive sector and the broader semiconductor industry. As economic conditions continue to evolve, Infineon Technologies remains vigilant, adapting its strategies to navigate the ever-changing landscape of the global market.