Infineon Technologies AG reported revenue that missed analysts’ expectations after the hoped-for resurgence in the electric vehicle (EV) market was delayed.
Sales fell 9.5 percent to 3.7 billion euros (US$4.1 billion) in the past quarter from the same period a year ago, the company said yesterday. That compared to the average 3.79 billion analyst forecast compiled by Bloomberg.
Infineon’s segment result margin, a measure of profitability, was 19.8 percent for the quarter, in line with analysts’ estimates.
Photo: Michaela Rehle, Reuters
Infineon is among the European chipmakers that specialize in making the type of chips used in cars and have grown especially dependent on automakers for their sales.
The company, alongside peers STMicroelectronics NV and NXP Semiconductors NV, has been affected by the auto industry’s pullback from EVs, which in turn has been driven by higher interest rates, weaker-than-expected economic growth and a continued lack of charging stations.
“Prolonged weak economic momentum has resulted in inventory levels in many areas overlaying end demand,” Infineon CEO Jochen Hanebeck said. “In addition to managing the current demand cycle, we are working on further strengthening our competitiveness.”
Infineon said it forecast revenue this quarter to drop from a year earlier to about 4 billion euros, and anticipates a segment result margin of about 20 percent. Analysts had anticipated revenue of 3.94 billion euros and segment result margin of about 22 percent.
Sales from Infineon’s automotive business, its largest, were 2.11 billion euros last quarter. That compared to 2.13 billion euros a year earlier, but was a sequential improvement from the previous quarter, because of an increase in “software-defined” vehicles, the company said.
These cars use Infineon’s chips to help run systems that connect sensors and computers inside vehicles.
Infineon also said it would slash 1,400 jobs and relocate 1,400 more due to a tough market environment.
The job cuts, from a workforce of about 58,600 worldwide, are part of a company-wide restructuring that was launched in May.
The program is aimed at "strengthening our competitiveness," Hanebeck said.
Additional reporting by AFP
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