Siltronic Q3 revenue beats estimates despite challenging markets

GERMAN semiconductor materials supplier Siltronic reported a forecast-beating 1.7 per cent jump in third-quarter sales on Thursday (Oct 24), due to an increase in wafer area sold and raised its core profit margin for the year.

The company, which makes silicon wafers used in semiconductor chips, posted revenue of 357.3 million euros (S$509.2 million) for the quarter, compared with 349.1 million euros a year earlier. That was ahead of analysts’ average estimate of 342.5 million euros according to LSEG.

Siltronic now expects earnings before interest tax, depreciation and amortisation (Ebitda) margin to be in a range of 24 to 26 per cent for 2024, compared to 23 to 25 per cent previously targeted.

Its Ebitda fell 9.8 per cent to 89.4 million euros for the third-quarter, ahead of analysts’ forecast of 78.5 million euros in a poll by LSEG.

“In a persistently challenging market environment, we have delivered solid quarterly results. However, it remains uncertain when chip manufacturers’ inventories will return to normal levels,” chief executive officer Michael Heckmeier said.

Chip stocks have been under pressure after the US government’s tighter restrictions on exports of chip equipment to China and uncertainty over the US presidential election made investors cautious. Weak demand for automotive, PC and memory chips has been partially offset by increased demand for artificial intelligence chips.

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Siltronic confirmed its full-year guidance, expecting sales to be in the high single-digit percentage range below previous year. REUTERS