Belgium's Melexis sees lower Q4 sales, adjusts FY guidance amid inventory cuts (updated)
30/10/2024 07:07
(Adds context in paragraph 2, CEO comment in 4&5, detail in
6-8)
By Dagmarah Mackos
Oct 30 (Reuters) - Belgium's largest semiconductor
supplier Melexis MLXS.BR forecast fourth-quarter sales below
expectations, prompting a slight cut in its full-year outlook as
car makers temporarily cut inventories amid uncertainty about
short-term demand.
The automotive semiconductor sector has faced challenges
from high inventories and weak industrial demand. But U.S. Texas
Instruments (TI), considered an industry bellwether, last week
reported improved demand from China, raising hopes of a broader
rebound.
Melexis, which provides components primarily to automotive
customers, said on Wednesday it now expects sales in the current
quarter of between 200 million and 210 million euros ($216
million and $227 million), compared to an average analyst
estimate of 255.1 million euros in a company-compiled poll.
"Recent discussions with customers indicate that they wish
to reduce significantly their inventories by year-end, which we
have decided to assume," CEO Marc Biron said in a statement.
Biron said that while the outlook for next year remains
uncertain, global car production is expected to rise in 2025,
and Melexis has seen strong traction with design wins,
especially in China.
Melexis adjusted its full-year sales projections to between
935 million euros and 945 million euros, down from around 1
billion euros forecast earlier, with a gross profit margin above
43% and an operating margin exceeding 24%.
In the third quarter, sales rose 1% from a quarter earlier
to 247.9 million euros, at the lower end of the company's own
guidance range of 247 million to 252 million euros.
Analysts had anticipated sales of 249.5 million euros,
according to company-provided poll.
($1 = 0.9244 euros)
(Reporting by Dagmarah Mackos; Editing by Tom Hogue and Rashmi
Aich)
((dagmarah.mackos@tr.com))