BERLIN (Reuters) – German chipmaker Infineon lowered its full-year revenue forecast on Tuesday, after adjusting for currency effects, as weak demand for chips used in consumer electronics caused weighed on its revenues during the first quarter of the financial year.
The group now expects an annual turnover of 16 billion euros, with a variation of plus or minus 500 million euros, compared to its previous forecast of 17 billion euros, with an equal margin .
“About half of the decline in forecast revenue is related to the assumed exchange rate adjustment to $1.10,” Infineon said.
In the first quarter, Infineon’s turnover fell 11% compared to the previous quarter, to 3.7 billion euros, below analysts’ expectations of 3.84 billion euros.
“In consumer, communications, IT and IoT applications, we do not expect a noticeable recovery in demand before the second half of a calendar year,” said CEO Jochen Hanebeck.
(Written by Miranda Murray, Dagmarah Mackos, edited by Blandine Hénault)
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