(Reuters) -German semiconductor materials supplier Siltronic reported a 14% drop in half-year sales on Thursday, due to weak demand in the wafer market.
The company, which makes silicon wafers used in semiconductor chips, posted revenue of 694.8 million euros ($753 million) in the first half of the year, compared with 808.2 million euros a year earlier.
Its earnings before interest, tax, depreciation and amortisation (EBITDA) fell 25.6% to 181.4 million euros.
“On a positive note, the end markets, partially driven by artificial intelligence (AI), will grow this year,” CEO Michael Heckmeier said in a statement.
“However, this is not yet reflected in our order situation due to still elevated inventory levels.”
The company has been struggling from slower-than-expected inventory reductions by its customers, as demand for wafers still remains weak in the end markets.
Siltronic confirmed its full-year guidance, expecting sales to fall in the high single-digit percentage range from the previous year.
It had lowered its 2024 guidance earlier this year, saying its clients were reducing their inventory levels more slowly than anticipated as demand for consumer electronics wanes.
($1 = 0.9226 euros)
(Reporting by Ozan Ergenay; Editing by Himani Sarkar and Subhranshu Sahu)
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