After a few good years, Infineon recently faced significant headwinds and had to repeatedly adjust its forecast. The situation stabilized somewhat in the third quarter, but remains weak.
Chip manufacturer Infineon is only emerging from the crisis very slowly. In the third quarter of its financial year, the company from Neubiberg near Munich was able to increase sales and profits slightly compared to the three months before, as it announced. However, with sales of 3.7 billion euros, the group fell slightly short of its forecast and expectations. If you compare the profit of 403 million euros with the third quarter of the previous year, there is a massive decline of more than half.
Infineon CEO Jochen Hanebeck spoke of a challenging market environment. “The recovery in our target markets is progressing only slowly. Given the persistently weak overall economic momentum, inventories in many places are outweighing final demand.”
For the fourth quarter, Infineon is forecasting sales of “around” 4 billion euros, with increasing sales in all segments. For the whole year, the figure is expected to be 15 billion.
Source: Stern
