(Reuters) – German semiconductor materials supplier Siltronic reported a 7% drop in its preliminary annual sales on Tuesday, citing high inventory levels amid a delay in demand recovery.
The company, which makes silicon wafers used in semiconductor chips, posted 2024 revenue of 1.41 billion euros ($1.45 billion), down from 1.51 billion euros a year earlier. However, this figure aligned with analysts’ expectations of 1.40 billion euros, based on a poll by Vara Research.
Its earnings before interest tax, depreciation and amortisation (EBITDA) came in at 364 million euros for the same period, down from 434 million euros last year.
“For the year 2025, we anticipate that the growth in the end-markets, primarily driven by AI, will not yet be reflected in our wafer demand due to the persistently elevated inventory levels in the value chain,” CEO Michael Heckmeier said in a statement.
The German company anticipates that the first half of next year will be considerably weaker than the second half of 2024. It also expects full-year sales for 2025 to be roughly in line with the previous year, with no significant year-on-year growth.
Siltronic will provide a more detailed outlook at the release of its annual report on March 6.
($1 = 0.9713 euros)
(Reporting by Ozan Ergenay; Editing by Christopher Cushing and Sherry Jacob-Phillips)
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