STMicroelectronics Reports 2000 Results and 2001 Forecasts
STMicroelectronics (Switzerland) posted strong results for 2000, but slashed its 2001 growth forecasts for the world chip market and predicted a nine-percent fall in first-quarter sales.
Fourth-quarter operating profit rose 159 percent to $563.0 million, led by telecom and consumer electronics sales, and the company added that per-share earnings would fall 10 percent quarter-on-quarter in the first three months of this year. Full-year net profit rose 165 percent to $1.45 billion, in line with analyst forecasts. Sales increased 55 percent to $7.813 billion, outpacing chip market growth of 35 percent.
"Fourth-quarter results are better than we expected, but 2001 will not be as spectacular," said ETC analyst Xavier Courtois. "If 2001 is difficult, there is a rebound expected in the second half. Whatever happens, ST will continue to outperform and win market share, being positioned in some of the strongest sectors."