BERLIN (Reuters) – German chip supplier Siltronic reported a 17% rise in fourth-quarter earnings on Wednesday and said it expected semiconductor demand to increase in the mid and long terms.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 17.1% quarter-on-quarter to 144 million euros ($162.27 million), boosted by the release of around 12 million euros in provisions after the failure of GlobalWafers’ tender offer on Monday.
GlobalWafers’ planned 4.35 billion-euro ($4.89 billion) takeover of Siltronic collapsed as the deal did not receive regulatory approval on time, although the door remained open to another attempt.
“We now see ourselves in a strong position to remain successful as an independent company,” Chief Executive Officer Christoph von Plotho said on Wednesday.
Full-year sales rose 16% to 1.405 billion euros, thanks to catch-up effects from 2020, a stronger U.S. dollar and slightly higher prices in the second half of the year.
Siltronic said ongoing geopolitical and global economic uncertainties and the COVID-19 pandemic would continue to shape 2022 and warned rising costs and inflation would have a negative impact on earnings.
However, “megatrends” in the semiconductor industry would increase demand in the mid and long terms, it said, adding that it expects a good start to the year.
“The company expects a positive market environment and significant price increases in 2022,” it said in a statement.
($1 = 0.8874 euros)
(Reporting by Riham Alkousaa; Editing by Subhranshu Sahu)
