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(RTTNews) – German semiconductor maker Infineon Technologies AG (IFNNY) on Tuesday reported a 52% decline in second-quarter profit to 394 million euros from 826 million euros a year earlier.
Earnings per share decreased to 0.30 euros from 0.63 euros in the same period last year. Adjusted earnings per share amounted to €0.42 (previous year: €0.69).
In the second quarter, Infineon’s group revenue was 3.63 billion euros, down 12% from last year’s 4.12 billion euros. Sales decreased 2% from the previous quarter.
For the third quarter, the company expects revenue of approximately 3.8 billion euros. Based on this, segment profit margins are expected to be in his low teens.
Additionally, Infineon has revised downward its outlook for 2024 due to prolonged weak demand in key target markets and continued inventory reductions at direct customers and distributors.
Annual revenue, previously expected to be €16 billion ± €500 million, is now expected to be approximately €15.1 billion ± €400 million.
Segment result margins are now expected to be approximately 20%, the midpoint of the induced revenue range, compared to previous guidance in the low-to-mid 20% range.
Adjusted gross margin will be in the low 40s percent range, compared to previously expected to be in the low to mid 40s percent range.
Infineon also said it would launch a “Step Up” program focused on targeted and sustainable improvements to its cost structure. The program is expected to have a positive annualized impact on segment results in the low triple digits.
Initial economic benefits are expected during fiscal year 2025. Full-scale effects are expected to appear in the first half of 2027.
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“RTTNews) – German semiconductor maker Infineon Technologies AG (IFNNY) on Tuesday reported second-quarter profits of 394 million euros, down 52% from 826 million euros a year earlier. .”
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Source link: https://www.nasdaq.com/articles/infineon-q2-results-down-issues-q3-outlook-cuts-fy24-view-starting-step-up-program
