BERLIN, Aug 5 (Reuters) - German chipmaker Infineon
adjusted its full-year revenue outlook for the third
time in the space of a few months on Monday after missing
expectations in its third quarter due to sluggish demand.
The company reported revenue of 3.702 billion euros ($4.04
billion) for the April-June period, falling short of the 3.8
billion forecast in a company-provided consensus and down 9% on
the year.
Infineon now expects full-year revenue of around 15 billion
euros, having already twice lowered guidance, most recently to
an expected 15.1 billion euros, plus or minus 400 million euros.
Its shares fell 4.5% in early Frankfurt trade.
"The recovery in our target markets is progressing only
slowly. Prolonged weak economic momentum has resulted in
inventory levels in many areas overlaying end demand," said
Infineon Chief Executive Jochen Hanebeck.
The company maintained its outlook for the segment result
margin, management's preferred measure of operating
profitability, after it came in above expectations at 19.8%.
"In a market environment that remains challenging, Infineon
continues to hold up well," said Hanebeck.
A cost savings programme, announced in May, should start to
have a positive result on the segment, or adjusted, result
beginning in the company's 2025 fiscal year, added Hanebeck on
Monday.
Infineon joins the ranks of chipmakers battered by weak
demand, with rival chipmaker STMicroelectronics
cutting its full-year revenue and margins guidance, and U.S.
heavyweight Intel ( INTC ) suspending dividends and slashing its
workforce to fund a costly turnaround for its chips business.
($1 = 0.9149 euros)