Q2 sales 3.632 bln eur, down 2% vs Q1 (Il Sole 24 Ore Radiocor) - Berlin, 07 May - German chip maker Infineon said it was cutting its full year guidance as it takes a cautious approach given the weakness in many end markets due to economic conditions while customers and distributors continue to reduce semiconductor inventory levels.

The company said it continues to see weak demand for consumer applications and there has also been a noticeable deceleration in growth in the automotive sector.

It now sees sales in the year at around 15.1 billion euros, plus or minus 400 million, from a previous forecast of 16 billion, plus or minus 500 million. The segment result margin is now seen at around 20% from a previous guidance of the low to mid-twenties percentage range. It now plans 2.8 billion euros of investments, from 2.9 billion previously, and expects adjusted free cash flow of around 1.6 billion from 1.8 billion previously and reported free cash flow of around zero from a previously expected 200 million.

In the second quarter, sales fell a quarterly 2% and an annual 12% to 3.632 billion euros with steady sales in Automotive, a decline in Green Industrial Power and Power & Sensor Systems, and a slight increase in Connected Secure Systems.

The segment result in the second quarter was 707 million euros compared with 831 million in the prior quarter and 1.18 billion a year earlier for a margin of 19.5% from 22.4% in the first quarter and 28.6% a year ago. The profit for the period was 394 million euros from 587 million in the first quarter and 826 million a year earlier. In the third quarter, revenue is seen around 3.8 billion euros and the Segment result margin is forecast to be in the high-teens percentage range.

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(RADIOCOR) 07-05-24 10:53:46 (0329) 5 NNNN