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Investing.com -- Siltronic AG (ETR:WAFGn) reported better-than-expected second-quarter results on Tuesday, but lowered its full-year sales outlook as weak semiconductor demand and elevated customer inventories persist.
The company’s shares were down 0.7% in Frankfurt as of 08:01 GMT.
The German supplier of silicon wafers posted Q2 revenue of €329.1 million, down from €351.3 million a year ago but above the €322 million forecast by analysts in an LSEG poll.
EBITDA came in at €86.4 million, ahead of the €69.4 million consensus, while EBIT reached €23.7 million, significantly surpassing expectations for a €10.6 million loss.
Despite the beat, Siltronic revised its full-year guidance, now expecting revenue to fall by a mid-single-digit percentage compared to last year, citing foreign exchange (FX) headwinds. It had previously projected flat year-on-year sales.
"The visible growth in end markets has so far not led to a normalization of inventory levels at chip manufacturers. As a result, there is still no noticeable recovery in demand at Siltronic," CEO Michael Heckmeier said in a statement.
Siltronic maintained its full-year EBITDA margin guidance of 21% to 25%.
"Demand for wafers remains subdued with inventories still elevated and volume postponements from Q3 to Q4. Expect lower sequential revenues in Q3 and a recovery in Q4," Jefferies analyst Constantin Hesse said in a note.
"While the U.S./EU tariff agreement still poses some questions on the potential impact on wafers, a potential bottom in Q3 could lead to a more constructive view," they added.