Infineon adjusts revenue forecast: Lower expectations for the entire year

The German chip manufacturer Infineon has narrowed its revenue forecast for the full year after revenue expectations for the third quarter were not met. Despite a slight growth of 2% compared to the previous quarter, reaching a revenue of 3.702 billion euros, the company fell short of the forecasted 3.8 billion euros. This was attributed to the slow progress of recovery in target markets, according to Infineon. Infineon's CEO Jochen Hanebeck stated that the persistently weak economic environment had led to high inventory levels in many areas, overshadowing end demand. Nevertheless, Infineon achieved a segment result of 734 million euros in the third quarter, representing a 4% increase compared to the previous quarter and exceeding expectations. The profit margin stood at 19.8%. "In a still challenging market environment, Infineon continues to perform well," said Hanebeck. He emphasized that the company would further strengthen its competitiveness through the cost-saving program announced at the beginning of the year. For the full year, Infineon now expects a revenue of around 15.0 billion euros, compared to the previous forecast of 15.1 billion euros. The new forecast range is plus or minus 400 million euros. Infineon's shares fell by 1.9% in pre-market trading at brokerage firm Lang & Schwarz.