Arab Today, arab today stm chipmaker reports return to profit sees demand slow
Last Updated : GMT 00:20:28
Arab Today, arab today
Arab Today, arab today

STM chip-maker reports return to profit, sees demand slow

Arab Today, arab today

Arab Today, arab today STM chip-maker reports return to profit, sees demand slow

STMicroelectronics' headquarters in Paris
Paris - AFP

French-Italian microchip maker STMicroelectronic, reporting a return to profit in the third quarter, warned on Wednesday that demand for its processors could fall.
The group's share dropped 9.17 percent to 5.05 euros around midday after it announced some $100 million (78 million euros) in cost-cutting measures.
STM, which makes products widely used in high-tech industries, said its third-quarter profit was $72 million -- compared with a net loss of $142 million in 2013 -- but predicted a downturn in the October-to-December period.
Turnover had already fallen back by 6.3 percent to $1.88 billion in the second quarter, mainly because STM stopped selling products taken on from ST-Ericsson but also because of lower demand in August, the company said.
Its hookup with Ericsson for cellphone chips was the source of major losses over several quarters.
"The slowing demand that we saw in August, especially in the mass market for microcontrollers, put a brake on the turnover growth we expected for the second quarter," said CEO Jean-Marc Chery.
"It continued into September and we predict a resulting 3.5 percent decrease in turnover in the fourth quarter of 2014," Chery told AFP.
The gross margin stood at 34.3 percent compared with an operational margin of 4.0 percent, not counting the costs of restructuring and depreciation provisions, while free cash flow was $140 million.
Earnings per share in the third quarter doubled to eight US cents from four cents in the second quarter. In the third quarter last year the company reported losses per share of 16 cents.
Most analysts doubt that STM can achieve its target of a 10 percent operational margin by mid-2015.
The gross margin should reach 33.8 percent in the last quarter of the year as a result of unused production capacity.
STM shares already took a hit earlier in October after US rival Microchip Technology cut its sales forecast for the upcoming quarter citing disappointing business activity, especially in China.
Microchip's shares plunged more than 12 percent, bringing down with them STM's, which dropped nearly six percent, and those of Micron Technology and Texas Instruments.
On October 20, IBM agreed to pay $1.5 billion to GlobalFoundries, an Emirates semiconductor foundary, to take on its losing chip-making unit.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today stm chipmaker reports return to profit sees demand slow Arab Today, arab today stm chipmaker reports return to profit sees demand slow

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today stm chipmaker reports return to profit sees demand slow Arab Today, arab today stm chipmaker reports return to profit sees demand slow

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Italy regions back 'big bang' autonomy

GMT 07:10 2017 Monday ,23 October

Italy regions back 'big bang' autonomy
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Trump: End of Daesh is in sight

GMT 20:29 2017 Monday ,23 October

Trump: End of Daesh is in sight
Arab Today, arab today Maltese demand justice for murdered

GMT 06:08 2017 Monday ,23 October

Maltese demand justice for murdered
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Lost Australia diver swam miles

GMT 19:09 2017 Monday ,23 October

Lost Australia diver swam miles
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla to build wholly-owned plant

GMT 07:55 2017 Monday ,23 October

Tesla to build wholly-owned plant
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Rogina happy for reactions to “The Flood”

GMT 09:30 2017 Friday ,20 October

Rogina happy for reactions to “The Flood”
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:07 2017 Sunday ,22 October

15,000 Under Fives Die

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday