BERLIN (Reuters) -German chip manufacturer Infineon announced a cost savings programme on Tuesday as it lowered its full-year revenue outlook blaming ongoing industry-wide weak demand.
The company lowered its revenue guidance to 15.1 billion euros ($16.3 billion), plus or minus 400 million euros, for the year, down from its previous guidance of 16 billion euros, plus or minus 500 million euros.
“Many end markets have remained weak due to economic conditions, while customers and distributors have continued to reduce semiconductor inventory levels,” said CEO Jochen Hanebeck, adding that the automotive sector in particular has seen a noticeable deceleration in growth.
In the second quarter, revenue fell slightly compared with the previous quarter to 3.63 billion euros, with the adjusted, or “segment” result shrinking by 15% to 707 million euros.
As a result, Infineon is launching measures focused on manufacturing productivity and operating cost optimization that the company said should start to have a positive result on the adjusted result beginning in fiscal 2025.
($1 = 0.9288 euros)
(Writing by Miranda Murray, Editing by Rachel More, Kirsti Knolle)
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