05.10.24
Infineon Technologies AG is reporting results for the second quarter of the 2024 fiscal year (period ended March 31, 2024).
Infineon’s Q2 FY 2024 revenue was €3.632 billion, with the segment result of €707 million and segment result margin of 19.5%.
“In the prevailing difficult market environment, Infineon delivered a solid second quarter,” said Jochen Hanebeck, CEO of Infineon. "Many end markets have remained weak due to economic conditions, while customers and distributors have continued to reduce semiconductor inventory levels. Weak demand for consumer applications persists. There has also been a noticeable deceleration in growth in the automotive sector.
“We are therefore taking a cautious approach to the outlook for the rest of the fiscal year and are lowering our forecast,” added Hanebeck. “In the medium to long term, decarbonization and digitalization will continue to be strong structural drivers of our profitable growth. In order to realize the full potential of our company, we will further strengthen our competitiveness. To this end, we are launching the company-wide ‘Step Up’ program. We are aiming to achieve structural improvements in our Segment Result in the high triple-digit million euro range per year.”
Based on an assumed exchange rate of US$1.10 to the euro, Infineon now expects to generate revenue of around €15.1 billion plus or minus €400 million (previously €16 billion plus or minus €500 million), with a segment result margin of around 20% (previously in the low to mid-twenties%age range) at the mid-point of the guided revenue range.
Adjusted gross margin will be in the low-forties%age range (previously in the low to mid-forties%age range). Investments are planned at around €2.8 (previously around 2.9 billion). Adjusted free cash flow of about €1.6 billion (previously €1.8 billion) and reported free cash flow of about €0 million (previously about €200 million) are now expected.
Infineon’s Q2 FY 2024 revenue was €3.632 billion, with the segment result of €707 million and segment result margin of 19.5%.
“In the prevailing difficult market environment, Infineon delivered a solid second quarter,” said Jochen Hanebeck, CEO of Infineon. "Many end markets have remained weak due to economic conditions, while customers and distributors have continued to reduce semiconductor inventory levels. Weak demand for consumer applications persists. There has also been a noticeable deceleration in growth in the automotive sector.
“We are therefore taking a cautious approach to the outlook for the rest of the fiscal year and are lowering our forecast,” added Hanebeck. “In the medium to long term, decarbonization and digitalization will continue to be strong structural drivers of our profitable growth. In order to realize the full potential of our company, we will further strengthen our competitiveness. To this end, we are launching the company-wide ‘Step Up’ program. We are aiming to achieve structural improvements in our Segment Result in the high triple-digit million euro range per year.”
Based on an assumed exchange rate of US$1.10 to the euro, Infineon now expects to generate revenue of around €15.1 billion plus or minus €400 million (previously €16 billion plus or minus €500 million), with a segment result margin of around 20% (previously in the low to mid-twenties%age range) at the mid-point of the guided revenue range.
Adjusted gross margin will be in the low-forties%age range (previously in the low to mid-forties%age range). Investments are planned at around €2.8 (previously around 2.9 billion). Adjusted free cash flow of about €1.6 billion (previously €1.8 billion) and reported free cash flow of about €0 million (previously about €200 million) are now expected.