Infineon Technologies, the semiconductor giant based in Neubiberg near Munich, has revised its annual forecast downward, citing political turbulence in the United States and the recent weakening of the dollar. CEO Jochen Hanebeck announced a slight decrease in expected revenue and margins, alongside reduced investment plans. This adjustment comes just months after the company had raised its revenue expectations in February, buoyed by a stronger dollar at the time.
The recent fluctuations in the dollar's exchange rate alone might not have necessitated a revision of the forecast, according to Hanebeck. He noted that Infineon performed well in the second quarter and would have met its original expectations even with a less favorable dollar rate of 1.125. However, the anticipated impact of US tariffs has proven to be a significant concern. Hanebeck explained that while the company's order intake shows no signs of weakening, the effects of tariff disputes can only be roughly estimated, leading to a 10-point deduction from the expected revenue in the fourth business quarter.
Beyond the challenges posed by the US market, Infineon's financial performance in other regions has also been mixed. The second quarter of the fiscal year, spanning January to March, saw profits of 232 million euros, a 41% decrease compared to the same period last year and a slight decline from the previous quarter. On a brighter note, revenue remained robust at 3.6 billion euros, showing only a minimal decrease year-over-year and a slight increase from the preceding quarter.
This scenario underscores the delicate balance global companies like Infineon must maintain in navigating currency volatility and geopolitical uncertainties. With the semiconductor industry at the heart of technological advancement and economic growth, Infineon's adjustments reflect broader challenges facing multinational corporations in today's interconnected yet unpredictable global economy.
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