【Lansheng Technology News】On October 31, ON Semiconductor announced its third quarter results for fiscal year 2023: third quarter revenue was US$2.1808 billion, a year-on-year decrease of 0.54%; net profit attributable to the company was US$582.7 million, down from the previous year. It was $311.9 million during the same period. By business unit, automotive business revenue hit a record, up 33% year-on-year to US$1.2 billion; industrial chip revenue increased 0.4% year-on-year to a record-breaking US$615.8 million.
It is reported that the company's customers include European car manufacturer Volkswagen, and the company provides chips for electric vehicle drivetrains and provides assistance for driver assistance systems such as cameras and sensors.
According to the report, the company's CEO Hassane El-Khoury said on a conference call after the earnings report: "We are starting to see weakness in some regions, with tier one customers in Europe digesting inventory, and there are risks to automotive demand due to high interest rates. It’s also increasing.”
ON Semiconductor expects revenue in the fourth quarter of this year to be US$1.95 billion to US$2.05 billion, lower than the US$2.18 billion forecast; adjusted diluted earnings per share will be US$1.13 to US$1.27, lower than analysts’ average estimate of US$1.36. In the third quarter, the company's revenue was $2.18 billion, slightly above expectations of $2.15 billion; adjusted earnings per share were $1.39, beating expectations of $1.34.
The company has laid off 1,360 people so far this year. El-Khoury said in an interview that the company still expects demand for electric vehicles to grow, but at a slower pace.
The announced layoffs are part of a larger strategic shift by the company to produce more profitable chips in-house and save costs by outsourcing others.
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