Earnings Call Transcript for Siltronic AG (SSLLF) Second Quarter 2024
Opening Remarks
Good morning, everyone, and welcome to the Siltronic AG earnings call for the second quarter of 2024. I’m your host, Chief Executive Officer, Dr. Christoph von Plotho. Joining me today are Chief Financial Officer, Dr. Rainer Irle, and Chief Operating Officer, Dr. Thorsten Musculus.
Financial Highlights
Revenue
Revenue for the second quarter of 2024 amounted to €2.3 billion, representing a 15% increase compared to the same quarter last year. This growth was primarily driven by strong demand for our silicon wafers from the automotive and industrial sectors.
Net Income
Net income for the quarter reached €645 million, a 20% increase year-over-year. This was due to increased revenue and operational efficiency improvements.
Earnings Per Share
Earnings per share for the second quarter of 2024 were €1.52, up by 18% compared to the same quarter last year.
Business Segments
Silicon Wafers
Our silicon wafers business segment performed exceptionally well, with revenue growth of 16% year-over-year. The automotive and industrial sectors accounted for the majority of this growth.
Other
Our other business segments, including equipment and services, also contributed to the company’s overall growth, although to a lesser extent.
Market Outlook
Long-Term Demand
We continue to see long-term demand for silicon wafers remaining strong, driven by the growth of the automotive and industrial sectors. The transition to electric vehicles and the increasing adoption of automation in factories are creating new opportunities for our products.
Supply Chain Challenges
While demand remains high, we continue to monitor supply chain challenges related to raw materials and logistics. However, we remain confident in our ability to mitigate these challenges and meet our customers’ needs.
Growth Strategy
Capacity Expansion
We are committed to expanding our capacity to meet the growing demand for silicon wafers. We are currently constructing new facilities in Germany and Singapore, which are expected to come online in 2025.
Product Innovation
We are also investing in research and development to develop new and innovative products that meet the evolving needs of our customers.
Closing Remarks
In conclusion, we had a strong second quarter of 2024 with impressive financial performance and continued growth in our core business segments. We remain optimistic about the long-term outlook for the industry and are confident in our strategy to deliver sustained value to our shareholders.
Thank you for your time and interest in Siltronic AG.
Kind regards, Dr. Christoph von Plotho
