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Infineon adjusts revenue outlook after missing quarterly forecast
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Infineon adjusts revenue outlook after missing quarterly forecast
Aug 5, 2024 12:22 AM

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)

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