BERLIN (Reuters) -German chipmaker Infineon narrowed the range for its full-year revenue outlook on Monday after it missed expectations for third-quarter revenue amid halting recovery in its target markets.
The company reported third-quarter revenue of 3.702 billion euros ($4.04 billion), falling short of the 3.8 billion euros forecast in a company-provided consensus but increasing 2% from the prior quarter due to growth in the power and sensor systems and automotive segments.
“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,” said Infineon Chief Executive Jochen Hanebeck.
The segment result grew 4% quarter-on-quarter to 734 million euros, with a margin of 19.8%, coming in above expectations.
“In a market environment that remains challenging, Infineon continues to hold up well,” said Hanebeck, adding that the company is further strengthening its competitiveness through its cost savings programme announced earlier this year.
For the full year, Infineon now expects revenue of around 15.0 billion euros, versus prior guidance for 15.1 billion euros ($16.3 billion), plus or minus 400 million euros, for the year.
Infineon shares fell 1.9% in pre-market trade at brokerage Lang & Schwarz.
($1 = 0.9149 euros)
(Reporting by Miranda Murray, Editing by Friederike Heine)
