STMicroelectronics Reports 2000 Results and 2001 ForecastsJanuary 31, 2001 by Jeff Shepard
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."