European Semiconductor Firms Report Mixed Earnings -- at a Glance

Companies from across the semiconductor industry have reported second-quarter earnings on Thursday, with some tweaking guidance based on demand trends in their end markets.

--European chip maker STMicroelectronics posted a $1 billion profit for the second quarter on revenue of $4.33 billion, up 13% on year. Chief Executive Jean-Marc Chery attributed the revenue performance to its automotive and industrial divisions. The company narrowed 2023 revenue guidance to between $17.25 billion and $17.55 billion from $17 billion-$17.80 billion previously. Shares are up 4.4% at EUR48.35.

--Germany's Aixtron said second-quarter revenue jumped 69% to 173.5 million euros ($192.3 million), with more-than-doubled earnings before interest and taxes of EUR44.6 million. The group raised 2023 revenue and orders guidance in light of strong demand, and now expects revenue of EUR600 million to EUR660 million and order intake of EUR620 million to EUR700 million. It previously expected revenue of EUR580 million to EUR640 million and orders of EUR600 million to EUR680 million. Shares are up 13% at EUR35.04.

--Germany's Siltronic posted second-quarter sales of EUR403.7 million, down from EUR442.2 million. Earnings before interest, taxes, depreciation and amortization fell to EUR118.6 million from EUR147 million. CEO Michael Heckmeier said the company saw weak demand and "the second half of the year will be even more challenging" due to inventory corrections at chip manufacturers and their customers. The company expects 2023 sales 14% to 19% below the previous year, with an Ebitda margin between 26% and 30%. Shares are down 0.5% at EUR75.70.

--Germany's Elmos Semiconductor posted EUR136 million in sales for the second quarter, up 29% thanks to sustained high demand in all product segments. EBIT rose to EUR34.1 million from EUR25.2 million. Elmos said the "dynamic" sales performance is expected to continue in the second half, citing new product launches. The group continues to expect 2023 sales of more than EUR560 million and an EBIT margin of roughly 25%. Shares are down 1.5% at EUR79.30.

--The Netherlands' BE Semiconductor Industries said second-quarter revenue fell 24% to EUR162.5 million due to significantly lower demand for a broad range of computing applications. Net profit slipped 30% to EUR52.6 million due to lower revenue. Chief Executive Richard W. Blickman said revenue in the third quarter would decline by 20%-30% versus the second quarter due to typical seasonal patterns and current industry conditions. The group expects fourth-quarter revenue will significantly exceed third-quarter levels based on scheduled shipments from backlog, particularly for wafer level systems. Shares trade 3.4% higher at EUR105.85.

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July 27, 2023 06:33 ET (10:33 GMT)

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