By David Sachs
Siltronic, the German chip maker, experienced a decline in its share price during early trading on Tuesday. This drop came as a result of the company’s decision to reduce its dividend and its forecast of full-year figures falling below market expectations.
At 0823 GMT, Siltronic shares were down 7.1% to EUR85.70, reaching as low as EUR82.65.
Siltronic announced that it expects sales to remain flat this year, compared to a total of 1.51 billion euros ($1.63 billion) in 2023. This forecast falls 10% below consensus expectations, according to Jefferies.
For the year, investors will receive a dividend of EUR1.20 per share, compared with EUR3.00 for the previous year, as stated by Siltronic.
Stifel reports that the company’s target for earnings before interest, taxes, depreciation, and amortization margin reaches as low as 25.7%, implying a total Ebitda of EUR389 million for the year. This figure represents a potential shortfall of up to 26% compared to Vara consensus.
It is evident that Siltronic faces significant challenges ahead, with a lower dividend and diminished full-year figures expected. However, the company will need to employ strategic measures to recover from these setbacks.
