Fiscal year 2024
Gloomy prospects and quarterly loss at Infineon
The semiconductor company is struggling with weak demand in many areas. A dispute from the past pushed the fourth quarter result into the red.
The chip manufacturer Infineon is leaving the old financial year with a quarterly loss and entering the new one with a bleak outlook. The weak demand from most business areas and high inventories will continue to accompany the group from Neubiberg near Munich in the 2025 financial year, which has been running since October, said CEO Jochen Hanebeck, dampening expectations. Sales are therefore expected to fall again, after falling by a good 1.3 billion euros in the past financial year and ending up at just under 15 billion.
“Currently, our end markets, with the exception of artificial intelligence, offer hardly any growth impulses, and the cyclical recovery is being delayed,” said Hanebeck. “We are therefore preparing for a subdued business development.”
The bottom line is that the numbers don’t look good either. A profit of 1.3 billion euros is a far cry from the 3.1 billion of the previous year. The dividend should still remain at 35 cents per share. In the fourth quarter there was even a loss of 84 million euros.
However, a legacy became noticeable here, which Infineon has now gotten rid of. Since the end of 2010, Infineon had been in a legal dispute with the insolvency administrator of the Qimonda storage business, which was spun off in 2006. At the beginning of 2009, Qimonda filed for bankruptcy. The legal dispute involved, among other things, the allegation that the storage business spun off from Infineon was not valuable. In August, Infineon and the insolvency administrator agreed on a settlement that burdened the group with more than 400 million euros in the fourth quarter.
dpa
Source: Stern
