Infineon Q3: "holding up well"
Infineon Technologies AG has reported results for the third quarter of its 2024 fiscal year (period ended 30 June 2024).
Q3 2024 results include revenues of €3.702 billion, a segment result of €734 million, and a segment result margin of 19.8 percent.
"In a market environment that remains challenging, Infineon continues to hold up well," says Jochen Hanebeck, CEO of Infineon. "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. In addition to managing the current demand cycle, we are working on further strengthening our competitiveness through the "Step Up" structural improvement program."
Outlook
Outlook for Q4 2024 (assuming an exchange rate of $1.10 to the euro) are a revenue of around €4.0 billion expected. On this basis, the segment result margin is forecast to be around 20 percent.
or the full year 2024, Infineon expects a revenue of around €15.0 billion and a segment result margin of around 20 percent. Adjusted gross margin is expected to be in the low-forties percentage range.
Investments are planned at around €2.8 billion. Adjusted free cash flow, which is adjusted for investments in large frontend buildings and the purchase of GaN Systems, is expected to be about €1.5 billion and reported free cash flow about minus €200 million.
