Jan 25 (Reuters) – Chipmaker STMicroelectronics said on Thursday its first-quarter revenue would fall more than 15 percent year-on-year, after fourth-quarter sales missed estimates due to a slowdown in request.
Orders from the auto industry nevertheless helped chipmakers offset the impact of U.S.-China trade tensions and weak demand for individual electronics.
“In the fourth quarter, our customer orders decreased compared to the third quarter. We continued to see stable final demand in the automotive sector, no significant increase in the personal electronics sector and further deterioration in the sector industrial”, summarized the group’s CEO, Jean-Marc Chery, in a press release.
The company, whose clients include Tesla and Apple, forecast revenue of $3.6 billion (€3.3 billion) for the first quarter.
Fourth-quarter net revenue was $4.28 billion, below analysts’ consensus of $4.30 billion, according to an LSEG poll.
Quarterly operating profit fell 20.5% to $1.02 billion.
In 2024, the company plans to invest approximately $2.5 billion in net capital expenditures, and targets annual revenue of between $15.9 billion and $16.9 billion. (Reporting Michal Aleksandrowicz in Gdansk; French version Corentin Chappron, editing by Zhifan Liu)
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