Infineon's Challenging Fiscal Year Ahead

Infineon, the semiconductor manufacturer based in Neubiberg, is facing significant challenges as it reports a quarterly loss and a bleak outlook for fiscal year 2025. Revenue has plummeted to 15 billion euros, with profits declining sharply to 1.3 billion euros, a stark contrast to the previous year's 3.1 billion euros.

While artificial intelligence remains a bright spot, demand in other sectors is weak, and high inventory levels exacerbate the situation. The company is also grappling with a substantial burden from an 84 million euro loss in the fourth quarter and the financial implications of a settlement related to the Qimonda insolvency.

Despite these difficulties, Infineon has decided to maintain its dividend at 35 cents per share. The board anticipates a hesitant business performance in the upcoming year, with a cyclical recovery still delayed.