Chip Supplier Siltronic Slips into Loss Zone - Siltronic Reports Q3 Sales Drop, Maintains Positive EBITDA Outlook
Siltronic AG, a Munich-based chip supplier, has reported a 7.3% decline in sales for the first nine months of this year, with revenue dropping to €1.05 billion from €1.13 billion in the same period last year. The company's net profit also slipped into the red, showing a loss of nearly €44 million compared to a profit of just under €19 million in the previous year.
Siltronic's CEO, Michael Heckmeier, attributed these changes to significant shifts in delivery volumes and negative currency effects during the third quarter. Despite these temporary setbacks, Siltronic has been investing in its Freiberg production facility, spending around €1 billion since 1995. This investment has expanded the site's capacity and employment, now housing 1,000 workers.
Looking ahead, Siltronic projects its earnings before interest, taxes, depreciation, and amortization (EBITDA) to remain between 22 and 24 percent for the full year, a slight decrease from the previously forecast 21 to 25 percent. For 2025, Heckmeier expects revenue to stay in the low single-digit percentage range below last year’s €1.4 billion.
Despite the recent decline in sales and profits, Siltronic continues to invest in its production facilities and maintains a positive outlook for its EBITDA margin in the coming years. The company's long-term strategy focuses on sustainable growth and expansion, as evidenced by its significant investment in the Freiberg site over the past two decades.
