Home / Markets / Industries / Technology

Friday, November 28, 2008

STMicroelectronics Slashes 4Q Outlook

By Adam Samson

FOXBusiness

STMicroelectronics slashed its fourth-quarter earnings outlook Friday as the “recent slowdown” squeezed the chipmaker’s bottom line.

The company now expects its fourth quarter revenues to dive between 12.8% and 18.4% compared with last quarter from only 8% previously projected.

"The revised revenue outlook is the consequence of a recent slowdown in the billings, recent and substantial changes in customers' demand and order push-outs for the month of December," STMicro said in a release.

The Franco-Italian company also dropped its gross margin forecast slightly. Gross margin is a key metric in determining a company’s profitability.

Consumer sentiment is depressed according to recent reports, and the several regional surveys have shown dramatic slowing in the manufacturing sector. STMicro is particularly affected by such cross-sector slowdowns because it produces products for such a wide variety of applications.

Shares of STMicro are off 7.8% to $6.60 on the day.

Fox Business Video

- Rep. Anthony Weiner on Health Care
- Mar 10, 2010
  
  Rep. Weiner: GOP is Subsidiary of insurance industry
- Rep. Weiner on Gov. Paterson, ...
- Mar 10, 2010
  
  Rep. Weiner: Need Quick investigation into Gov. Paterson
- Howard Kurtz on the Letterman ...
- Mar 10, 2010
  
  Howard Kurtz on Leno-Letterman battle in the ratings
- Howard Kurtz on Fmr. Rep. Massa
- Mar 10, 2010
  
  Was Fmr. Rep. Massa forced out?
- Howard Kurtz on Karl Rove
- Mar 10, 2010
  
  Imus: I like Karl Rove, sounds like compelling guy