STMicroelectronics Raises 2020 Revenue Guidance After Tough 2Q
July 23 2020 - 2:29AM
Dow Jones News
By Cecilia Butini
STMicroelectronics NV raised its revenue guidance for the year
after a difficult second quarter in which it posted a sharp decline
in profits.
The European semiconductor chip maker now expects revenue growth
in the second half of the year to push yearly revenue to between
$9.25 billion and $9.65 billion, it said Thursday. This compares
with a previous expectation of between $8.8 billion and $9.5
billion.
STMicroelectronics now targets capital expenditure of around
$1.2 billion for the year, compared with previous guidance of
between $1 billion and $1.2 billion.
The updated guidance came as the company reported that
second-quarter net profit fell 44% from a year earlier to $90
million. STMicroelectronics' performance for the period was hit by
lower revenue, which fell 4% to $2.09 billion.
For the third quarter, the chip maker expects revenue of $2.45
billion at mid-point, with gross margin of about 36%.
"During the second quarter, we returned to normal operations,"
Jean-Marc Chery said.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com;
@pietrolombard10
(END) Dow Jones Newswires
July 23, 2020 02:14 ET (06:14 GMT)
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