STMicroelectronics warns of bleak sales ahead
PARIS, Jan 27 (AFP) - French-Italian semi-conductor maker STMicroelectronics warned late Wednesday of bleaker trading ahead, estimating that first-quarter sales would fall four to 12 percent from the final quarter of 2004.
Chief executive Pascquale Pistorio forecast in a statement “a decline in both revenues and gross margin due to seasonal dynamics, coupled with continued pricing pressures across many of ST’s product families as a result of the industry-wide over-inventory situation, lower utilisation rates, as well as the negative impact of the weaker US dollar.
“Specifically, we expect first quarter revenues to decrease four percent to 12 percent in comparison to the 2004 fourth quarter and anticipate a gross margin of about 34 percent, plus or minus one percentage point,” he added.
The company also stood by earlier estimates for fourth quarter 2004 sales of USD 2.3 billion (EUR 1.7 billion), up 4.3 percent from the previous three months.
In morning trading here, STMicro’s shares were showing a loss of 1.42 percent at EUR 12.49 while the broader market edged higher.
Subject: French News