(Reuters) -Siltronic on Tuesday narrowed its annual core profit margin outlook after posting a weaker-than-expected quarterly profit, impacted by negative currency effects and deliveries shifting into the next quarter.
The German semiconductor materials supplier now expects an earnings before interest, taxes, depreciation and amortization (EBITDA) margin of 22% to 24% for 2025. It previously a forecast range of 21% to 25%.
Siltronic posted EBITDA of 65.7 million euros ($76.6 million) for the third-quarter, down from 89.4 million euros a year earlier, and below analysts’ average forecast of 66.6 million euros, according to a poll by LSEG.
“As expected, Q3 was impacted by significant delivery shifts into Q4 and negative FX effects, which temporarily weighed on sales and profitability,” CEO Michael Heckmeier said in a statement.
Siltronic and other materials and equipment suppliers such as Aixtron and Besi have been facing a slump in demand due to customers’ slower than expected inventory reductions, even as AI chip demand only partially offset weakness in the sector for automotive, PC and memory chips.
Siltronic, whose customers include Infineon, Intel, Samsung and TSMC, confirmed its full-year guidance.
($1 = 0.8575 euros)
(Reporting by Ozan Ergenay in Gdansk, editing by Matt Scuffham)
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