Finance
Aixtron delivers revenue warning, shares on course for worst day in a year
Published by Global Banking and Finance Review
Posted on February 27, 2025
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on February 27, 2025
By Ozan Ergenay
(Reuters) - German chip systems manufacturer Aixtron's annual revenue is expected to drop below last year's level because of a challenging market environment, it warned on Thursday after a 16% slide in operating profit, sending its shares on course for a worst day in a year.
The group expects full-year revenue between 530 million euros and 600 million euros ($554.65 million to $627.90 million) in 2025, down from 633.2 million euros a year earlier.
That compares with analysts' estimate of 582 million euros, according to LSEG data.
Chip companies have been under pressure as higher demand from artificial intelligence (AI) has failed to offset weak demand for automotive, PC and memory chips.
U.S. President Donald Trump's threat to impose 25% tariffs on cars, semiconductors and pharmaceuticals, which could disrupt the global supply chain, has raised concerns globally.
"Consensus expectations for 2025 have remained inflated but investors already expected a significant sales decline, in our view, given the negative news flow on silicon carbide over past months," Stifel analyst Juergen Wagner said in a note.
Aixtron shares felll around 10% in morning trade, putting them on track for their worst day since February 2024 and down down 14.4% so far this year.
Aixtron also said it expects first-quarter revenue between 90 million and 110 million euros, down from 118.3 million euros in the same period last year.
Full-year earnings before interest and tax (EBIT) dropped to 131.2 million euros from 156.8 million a year earlier.
The company will propose a dividend of 0.15 euros per share for 2024, down from 0.40 euros for 2023.
($1 = 0.9556 euros)
(Reporting by Ozan Ergenay; Editing by David Goodman and Tomasz Janowski)