DORTMUND (dpa-AFX) - The semiconductor company Elmos Semiconductor significantly increased sales and earnings last year. Elmos benefited from a final quarter that also exceeded analysts' expectations. The management is confident for the new year despite a difficult environment for chips. The price of the SDax-listed share jumped by more than twelve percent on Thursday morning.

The market was now betting that the good profitability would continue in the current year and that Elmos would reach the upper end of the target range for margins, said one trader.

For the new year, the company expects further growth in the middle of the range, as it announced this morning when presenting preliminary figures in Dortmund. Turnover is expected to reach 605 million euros - plus or minus 25 million euros. The company is forecasting an operating margin before interest and taxes (EBIT) of 23 to 27 percent. In 2023, the semiconductor company had achieved 26.2 percent.

"After three years of very high growth rates, the automotive semiconductor market is now in a normalization phase with temporary inventory adjustments," commented Group CEO Arne Schneider. Structurally, however, demand continues to rise due to more intelligent electronics in modern vehicles.

The earnings forecast does not include the effect of the planned sale of wafer production to the US group Littelfuse, which is expected to be completed in December. Following the sale, Elmos will focus more strongly on development and testing.

The past financial year was once again "very successful", the Group CEO continued. The company achieved "very strong new business".

Turnover increased by 28.6 percent to 575 million euros in 2023. Earnings before interest and taxes (EBIT) increased by 36.8% to 150.7 million euros. According to Elmos, the company set new records for both key figures. The bottom line profit also increased by almost 40 percent to 99.1 million euros./nas/lew/mis