Infineon expects slightly slower growth
After a strong year with strong growth and high profits, Infineon is expecting a somewhat weaker phase. On balance, the semiconductor group made a profit of around 3.1 billion euros in the 2022/23 financial year, as announced on Wednesday, almost one billion euros more than in the previous year. Sales also rose sharply by 15 percent to a record 16.3 billion euros.
Infineon will probably not be able to repeat these increases in the current year. "Overall, we expect further, albeit lower, sales growth for the 2024 financial year," said CEO Jochen Hanebeck. Sales are expected to be in the range of 16.5 to 17.5 billion euros. Infineon did not provide a forecast for profit after tax, but the profit margin is expected to be slightly lower than last year.
The current market situation is mixed at the moment, said Hanebeck, who spoke of a "challenging environment". Mobility and renewable energies are doing well, but industry and consumers are rather cautious. The cyclical sequence of different growth phases is nothing unusual, he emphasized. "And we know how to deal with this as a company."
Nevertheless, Hanebeck believes that the current major investments in Kulim, Malaysia, and Dresden, Saxony, are the right move. Even when the company recently invested in the plant in Villach, Austria, there were questions as to whether it was the right thing to do. But when it was completed, customers snatched the products out of Infineon's hands. Kulim will not be able to contribute to sales until 2025, Dresden 2026, by which time the current market weakness will be "clearly behind us". Infineon's figures were well received on the stock market. Around midday, the company's share price was well up and was one of the biggest winners on the DAX.
Infineon's quarterly figures for the current year might show a slowdown in growth compared to the previous year's significant increase. Despite anticipating slightly lower sales and profit margin growth, Infineon is continuing its investments in new facilities in Kulim, Malaysia, and Dresden, Germany.
Source: www.dpa.com
