The semiconductor supplier Siltronic does not expect a rapid end to the slump in demand in the industry.

At the start of the year, sales fell by four percent to 343.5 million euros compared to the previous quarter, according to figures released on Thursday. Siltronic CEO Michael Heckmeier pointed out that customers' warehouses were full. It is not yet clear when inventories will return to a normal level. "Therefore, 2024 will probably be a transitional year on the way to profitable growth." Gross profit fell by 9.1 million euros to 70.1 million euros, while the gross margin fell accordingly from 22.2% to 20.4%.

Only last week, Siltronic had prepared investors for a decline in sales in the current year and also reduced its forecast for the margin. In the medium and long term, however, Siltronic still expects a significant increase in demand.

(Report by Christina Amann. Edited by Olaf Brenner. If you have any questions, please contact our editorial team at Berlin.Newsroom@thomsonreuters.com (for politics and the economy) or Frankfurt.Newsroom@thomsonreuters.com (for companies and markets)