Sluggish demand continues to cause problems for semiconductor manufacturer Infineon.

"With the exception of artificial intelligence, our end markets are currently offering hardly any growth impetus and the cyclical recovery is being delayed," said Group CEO Jochen Hanebeck on Tuesday. "We are therefore preparing for a subdued business performance in 2025."

Hanebeck warned of a slight decline in sales for the current financial year 2024/2025, after sales in 2023/2024 fell by eight percent to 14.96 billion euros. The segment result margin is expected to deteriorate from 20.8 percent to around 15 to just under 20 percent.

In the final quarter of the 2023/2024 financial year, turnover shrank by 6% year-on-year to EUR 3.92 billion. The segment result margin was 21.2 percent. With the latter, Infineon slightly exceeded its own targets.

(Report by Hakan Ersen, edited by Ralf Banser. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)