Chip parts supplier Siltronic's profit falls on high client inventories

FILE PHOTO: Semiconductor chips are seen on a printed circuit board in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo

(Reuters) - German chip equipment supplier Siltronic reported a 27.5% drop in first-quarter core profit on Thursday, a week after it slashed annual targets due to customers' still high inventories.

The company, which makes silicon wafers used in semiconductor chips, posted quarterly earnings before interest, tax, depreciation and amortisation (EBITDA) of 90.8 million euros ($97.3 million), down from 125.2 million euros a year earlier.