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

- The Crisis With 20/20 Hindsight
- Nov 21, 2009
  
  FOXBusiness.com LIVE
- Jerry Rice Talks Career
- Nov 21, 2009
  
  NFL Receiver on career on the gridiron
- John O'Hurley as Venture Capitalist
- Nov 21, 2009
  
  Comedian on life as venture capitalist
- Excess Spending in Congress
- Nov 21, 2009
  
  Saving $100 Million
- Cavuto Business Report 11-20-09
- Nov 21, 2009
  
  Business Report: Cavuto