Slight increase in revenue for Infineon, but misses target
"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 Chief Executive Jochen Hanebeck in the company 3Q report. "In addition to managing the current demand cycle, we are working on further strengthening our competitiveness through the "Step Up" structural improvement program."
In the third quarter of the 2024 fiscal year, the German semiconductor company's revenue improved slightly to
EUR 3.70 billion, up 2% from the prior quarter of EUR 3.63 billion, but short of the 3.8 billion forecast
The operating profit improved to EUR 519 million, up from EUR 496 million in the prior quarter. The financial result in the third quarter however was a net loss of EUR 30 million, compared with a net loss of EUR 12 million in the preceding quarter.
Infineon says that it expects to generate revenue of around EUR 4.0 billion in the fourth quarter. Based on the results for the first three quarters and the outlook for the fourth quarter, Infineon expects to generate revenues of around EUR 15.0 billion for the full fiscal year of 2024.
The company will reduce its workforce by 1,400 jobs and relocate another 1,400 positions to countries with lower labour costs, Jochen Hanebeck said on a call after the results, Reuters reports. This is part of a previously announced cost-savings programme. The CEO also stated that the company is "ruling out forced redundancies in Germany."
According to its Q3 report, Infineon had around 58,600 employees worldwide (end of September 2023).
