STMicroelectronics 1Q profit falls |
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Wed, 25 Apr 2007 06:22
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PARIS (Thomson Financial) - Chip maker STMicroelectronics NV said Tuesday its first-quarter profit fell 44 percent from the year-ago period on deteriorating prices and declining revenue.Net income for the quarter was $74 million, or 8 cents per share, down from $132 million, or 14 cents per share, in the first quarter of 2006.Revenue fell 3.7 percent to $2.28 billion from $2.36 billion.Analysts, on average, expected earnings of 12 cents per share on $2.31 billion in revenue, according to a Thomson Financial survey.Expenses for the quarter totaled $723 million, compared with $697 million in the year-ago period.'The trough of the multi-quarter industry correction currently under way appears to be somewhat deeper than we or industry analysts had anticipated,' President and Chief Executive Carlo Bozotti said in a statement. 'Our first-quarter sales and operating results were negatively impacted by declines in the wireless and consumer segments, in particular, as well as a tougher overall price environment and an unfavorable product mix within wireless.'American depositary shares of STMicroelectronics rose 75 cents, or 3.8 percent, to close at $20.65 on the New York Stock Exchange. In after-hours activity, shares added another 55 cents to $21.20. The stock has ranged from $14.55 to $20.84 over the past year.tf.TFN-Europe_newsdesk@thomson.comhjpCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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