The following is a summary of the Infineon Technologies AG (IFNNY) Q2 2024 Earnings Call Transcript:
Financial Performance:
Infineon reported Q2 revenues of €3.632 billion and a segment result of €700 million, with a segment result margin of 19.5%.
The company's order backlog remained stable at around €24 billion.
The automotive segment contributed revenues of €2.078 billion and the green industrial power segment experienced a sequential revenue decline, with sales falling 4% to €469 million.
Infineon lowered its revenue expectation to €15.1 billion for the 2024 fiscal year, with its segment result margin expectation revised to around 20%.
Infineon is adjusting its investment expectation to around €2.8 billion from €2.9 billion.
The company anticipates a high-teens level for the segment result margin in the coming June quarter.
Infineon delivered a robust first half of the 2024 fiscal year with revenues as guided and margin slightly better than expected.
Business Progress:
Infineon has introduced its second generation of trench-based silicon carbide MOSFETs, which have met strong customer interest.
Infineon anticipates its silicon carbide revenue growth to be about 20% for fiscal year 2024.
The company launched a program called Step Up targeted to strengthen their target operating model and enhance value creation.
Infineon maintains expectation of growth in its automotive business and securing significant microcontroller market share in 2024.
The company is preparing for capturing market share in an upswing, while also reducing inventory levels.
Infineon is observing increased demand in the smartphone and AI server space, and considers production of MCUs in China to meet localised demand.
Infineon expects continuous structural growth opportunities beyond the current downturn.
More details: INFINEON TECHNOLOG IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.