Infineon, German chip maker profit dips to $631 million in Q1

Admin I Tuesday, Feb. 06, 2024

 

BERLIN – Profit fell in its first quarter for German semiconductor manufacturer Infineon Technologies AG compared to the same period of the previous year.

Infineon reported on Tuesday that its first-quarter profit fell 19% to €587 million ($631 million) from last year’s €728 million.

Earnings per share dropped 18% to €0.44 from €0.55 a year ago.

Adjusted earnings per share stood at €0.53, compared to €0.64 last year.

Group revenue declined 6% to €3.7 billion from last year’s €3.95 billion.

The segment result margin was 22.4%, down from 28% a year ago.

Looking ahead to the second quarter, Infineon expects to generate revenue of around €3.6 billion, and segment result margin of about 18%.

Further, for fiscal 2024, the company trimmed its forecast noting that the market environment outside automotive remains weak.

Revenue is now expected to be around €16 billion plus or minus €500 million, down from the previously expected €17 billion.

Compared with fiscal 2023, the expected revenue at the midpoint of the guidance of €16 billion corresponds to a decline of about 2%.

Segment result margin would be in the low to mid-twenties percentage range at the mid-point of the guided revenue range.

Adjusted gross margin should be in the low to mid-forties percentage range.