Due to the tariff policies of U.S. President Donald Trump, Infineon has reversed the full-year targets it had only recently raised.
"Since our order intake still shows no signs of weakening, we can only estimate the impact of the tariff disputes in general terms," said Jochen Hanebeck, CEO of the chip manufacturer, on Thursday. Another negative factor is adverse currency effects. In response, he cut the investment budget to €2.3 billion from €2.5 billion. Infineon shares subsequently fell by nearly three percent in Lang & Schwarz trading.
For the 2024/2025 fiscal year, the company now expects slightly declining instead of stable to slightly increasing revenues. The segment result margin is forecast to be in the mid-teens percent range, rather than in the mid to high teens. These forecasts are based on a euro exchange rate of $1.125 instead of $1.05. "Without the effect of the tariff disputes, the forecast would have remained largely unchanged," Infineon emphasized.
In the past quarter, revenues were €3.59 billion, in line with expectations. The segment result margin stood at 16.7 percent. For the current quarter, the company expects revenues of around €3.7 billion and a margin in the mid-teens percent range.
At the same time, Infineon announced that the new German government has provided state aid for its new factory in Dresden. The shell of the plant is nearly complete.
(Report by Hakan Ersen, edited by Myria Mildenberger. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).
