Aixtron with a Profit Slump: Weak Third Quarter in Challenging Market Environment

The German chip manufacturer Aixtron had to accept an unexpectedly sharp profit decline in the third quarter, as gross margins were under pressure in a weak market environment. The company's earnings before interest and taxes (EBIT) fell by 17 percent year-on-year to 37.5 million euros, significantly missing the average analyst estimate of 40.6 million euros. There were also disappointments in terms of revenue: it fell by 5 percent to 156.3 million euros, also below analysts' expectations of 162.5 million euros. The reasons for the subdued mood in the chip industry include, among other things, the tightened export restrictions by the US government on chip equipment to China, as well as uncertainties related to the upcoming US presidential election, which are causing investors to be cautious. Despite weak demand for automotive, PC, and memory chips, rising demand for AI chips was only able to partially compensate for this decline. Nonetheless, Aixtron remains confident and confirmed its revenue forecast for the full year 2024, which is expected to be in the range of 620 to 660 million euros. For 2025, the company expects revenue to be close to or slightly below the level of the 2024 financial year.