STMicroelectronics shares gain on strong quarterly results
Shares in French chip maker STMicroelectronics posted strong gains on Wednesday after the company reported unexpectedly strong net earnings in the third quarter.
The share price was showing a rise of 4.42 percent to 6.169 euros in mid-day trade on a Paris market that was 0.31 percent weaker over all.
The company, a leading maker of microchips, registered net profit of 198 million dollars (143 million euros) in the July-August period, beating expectations, from sales that rose 16.8 percent to 2.657 billion dollars.
STMicroelectronics said it expected sales growth in the fourth quarter of between 2.0 and 7.0 percent compared with the third.
"The group is taking advantage of strong demand ... and a favorable context for some its new products, which should continue in the fourth quarter," said analyst Carlos Trevino Peinador of Spanish bank Santander.
© 2010 AFP