Chip maker lowers sales forecasts as EV market slows
- Infineon Technologies lowers sales forecasts for fiscal 2024 for the second time
- Automotive market slowdown affects chip maker’s growth
- Sales target for the year ending in September is around 15.1 billion euros
- Segment result margin expected at around 20%, down from 27% the prior year
- Low demand for semiconductors in consumer devices affects chip makers
- Tesla’s decline in quarterly deliveries signals a slowdown in the EV market
- STMicroelectronics also cuts forecasts due to slower demand from the auto industry
- Infineon’s revenue for Q2 2024 is EUR3.63 billion, down from EUR4.12 billion a year earlier
- Net profit falls to EUR394 million from EUR826 million
- Shares trade 4.0% higher at market open
Infineon Technologies has lowered its sales forecasts for fiscal 2024 for the second time this year due to slower growth in the automotive sector. The German chip maker now aims for around 15.1 billion euros in sales for the year ending in September, down from EUR16.31 billion in fiscal 2023. The segment result margin is expected to be around 20%, compared to 27% the prior year. This comes as chip makers face low demand for semiconductors in consumer devices, and the EV market shows signs of slowing with Tesla reporting a decline in quarterly deliveries. Rival STMicroelectronics has also cut its forecasts due to slower demand from the auto industry. Infineon’s revenue for Q2 2024 was EUR3.63 billion, with net profit falling to EUR394 million. Despite these challenges, shares traded 4.0% higher at market open.
Factuality Level: 8
Factuality Justification: The article provides specific details about Infineon Technologies lowering its sales forecasts for fiscal 2024 due to slower growth in the automotive sector. It includes information about the company’s revenue, profit, and margin, as well as comparisons to previous years and analyst estimates. The article does not contain irrelevant information, misleading details, sensationalism, or bias. It presents the facts objectively and concisely.
Noise Level: 3
Noise Justification: The article provides a detailed analysis of Infineon Technologies lowering its sales forecasts for fiscal 2024 due to slower growth in the automotive sector. It includes specific numbers and comparisons, as well as reasons behind the decline in demand for semiconductors. The article stays on topic and supports its claims with evidence such as revenue figures and analyst estimates. However, it could benefit from exploring the broader implications of this trend on the semiconductor industry and potential strategies for Infineon to navigate the challenges.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information about Infineon Technologies, a German chip maker, lowering its sales forecasts for fiscal 2024 due to slower growth in the automotive sector. This could impact the financial markets and companies involved in the semiconductor industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the financial impact of Infineon Technologies lowering its sales forecasts, which is relevant to financial markets. However, there is no mention of an extreme event.
Public Companies: Infineon Technologies (N/A), Tesla (N/A), STMicroelectronics (N/A)
Key People: Elon Musk (CEO of Tesla)
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