Siltronic AG Reports Q1 2024 Financial Results Amidst Weak Demand

Siltronic AG experienced a decline in demand in Q1 2024, leading to a 3.7% drop in sales to EUR 343.5 million compared to the previous quarter, largely influenced by product mix shifts. Although the EBITDA of EUR 90.8 million remained steady, the EBITDA margin saw a slight improvement from 25.5% to 26.4%. Company forecasts for 2024 suggest a sales reduction of about 10% from the previous year, with an EBITDA margin predicted between 21% and 25%.

The company's CEO, Dr. Michael Heckmeier, hinted that 2024 might be a transitional year, attributing ongoing challenges to elevated inventory levels among customers which suppress immediate demand recovery. Despite these conditions, Siltronic is maintaining its mid-term targets unchanged for 2028, highlighting expected long-term growth driven by global megatrends.

Siltronic also announced an acceleration in leadership changes, with Klaus Buchwald set to assume the role of Chief Operating Officer by June 1, 2024. Functional areas including Operations, Supply Chain, Engineering, and IT will be under his purview.