3.63 billion! Infineon's latest performance is released
Infineon has released its latest financial report, and due to the ongoing efforts of the automotive supply chain to reduce inventory, Infineon has once again lowered its annual financial forecast. Although revenue and profits have declined year-on-year, they are still slightly higher than market expectations.According to the financial report, Infineon reported a revenue of 3.63 billion euros in the second quarter (as of 3/31), slightly higher than the market estimate of nearly 3.6 billion euros and a net profit of 394 million euros, far lower than the market estimate of 826 million euros in the same period last year, but slightly higher than the market estimate of 379.34 million euros and a departmental profit margin of 19.5%.
In other aspects, the company's automotive division had sales of 2.078 billion euros in the second quarter, slightly lower than the market expectation of 2.08 billion euros, while the revenue of the power and sensing systems division decreased from 925 million euros in the same period last year to 713 million dollars.
Infineon CEO Jochen Hanebeck said, "Due to economic factors, the recovery of various terminal product markets has been slow, leading to customers continuously adjusting inventory. Currently, terminal demand is still lagging, especially for automotive products, which has significantly slowed down."
It is worth noting that Infineon has given a mixed financial forecast, lowering its revenue forecast for the 2024 fiscal year. However, it is optimistic that revenue will rise in the third quarter and is expected to reverse the decline of two consecutive quarters. This also means that the sluggish demand for electric vehicle manufacturers is coming to an end.
Looking ahead, Infineon estimates that its revenue for the third quarter will grow from 3.6 billion euros in the second quarter to approximately 3.8 billion euros, reversing the decline in revenue for two consecutive seasons, indicating that the sluggish demand from electric vehicle manufacturers is coming to an end.
The company estimates a full year revenue of approximately 15.1 billion euros for the fiscal year 2024 ending in September this year, with a fluctuation of 400 million euros, lower than the 16.31 billion euros for the fiscal year 2023. The department's profit margin is estimated to be around 20%, also lower than the 27% for the same period last year. The latest financial forecasts have both been lowered. Previously, the company estimated a full year revenue of approximately 16 billion euros and a departmental profit margin of around 20% for this fiscal year.
Market analysis indicates that this is the second time Infineon has lowered its full year financial forecast for the 2024 fiscal year, as it is working hard to cope with the slowdown in the growth of the automotive industry.
Citigroup analysts say that these forecasts indicate that the downward trend in revenue and profit margins for this fiscal year will hit bottom, which is consistent with what other chip manufacturers have already announced.
The performance of electric vehicle manufacturers in the previous quarter was mixed. The weak market and lack of charging infrastructure have put pressure on car manufacturers, and many have reduced their plans to transition from internal combustion engines to electric vehicles. Many European markets are also reducing subsidies, which have always been the key to making this new technology affordable.
