(Corrects period to first half, not Q1, in headline and paragraphs 1-2, specifies paragraph 5 to say guidance was not given for sales and earnings)
(Reuters) -Melexis, Belgium’s largest semiconductor supplier, said on Wednesday that it expected lower margins and sales in the first half of 2025, as inventory corrections by its automotive customers continue into the new year.
The company expects its operating margin to reach around 16% in the first half, down from the 26.3% it posted in the same period in 2024.
It also sees lower sales in the first quarter, in a range of 190 million to 200 million euros ($197.1 million to $207.5 million), versus 228.6 million euros in the prior year.
“While customer inventory corrections are continuing in the first half of the year, we are cautiously optimistic that customer demand will start to improve around the summer,” the company said in a statement.
Melexis did not provide sales or earnings guidance for the full year, but said sales were expected to pick up significantly in the second half of 2025.
($1 = 0.9639 euros)
(Reporting by Nathan Vifflin in Gdansk, editing by Milla Nissi)
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