Siltronic AG Revises 2024 Financial Guidance

Siltronic AG, based in Munich, Germany, has announced an adjustment to its financial guidance for the year 2024. The modification comes as a result of persistently high inventory levels among customers, which are depleting at a slower rate than anticipated. The company foresees these elevated inventory levels influencing its operations throughout the remainder of the year.

The semiconductor manufacturer highlighted that it expects sales to drop by approximately 10% from the previous year, impacted by reduced volumes, slight negative foreign exchange (FX) rates (EUR/USD 1.10), and marginal price effects. The anticipated EBITDA margin now ranges from 21 to 25%, including additional costs associated with ramping up a new production facility. In contrast, depreciation and amortization expenses are projected to stay below EUR 300 million.

Capital expenditures, including intangible assets, are forecasted to be just under EUR 550 million, slightly reduced from prior expectations, and net cash flow is likely to improve but remain significantly negative. Siltronic’s delivery schedules are affected, with some customer qualifications deferred to later in the year due to ongoing weak demand.