STMicro sees Q4 sales growth, trims capex plan

(Reuters) -STMicroelectronics, on Thursday said that it expected sales to rise in the fourth quarter compared with the current quarter, showing evidence of a sustained recovery after a multi-year downturn in its main markets. One of Europe's largest chipmakers, whose clients include Tesla and Apple, sees fourth quarter revenue reaching $3.28 billion, up from the $3,19 billion it reported this quarter. Analysts polled by LSEG expected fourth quarter revenue at $3.34 billion, and $3.12 billion in the third quarter. "Our strategic priorities remain clear: accelerating innovation; executing our company-wide program to reshape our manufacturing footprint" STMicroelectronics' Chief Executive Jean-Marc Chery said in a statement. Chipmakers exposed to the struggling automotive, industrial, and consumer chip markets such as STMicro, Texas Instruments, or NXP have faced a multi-year long sales slump since the pandemic's end, hit by low demand, high inventories, and geopolitical disruptions. Analysts had raised concerns after U.S.' Texas Instruments forecast a dour fourth quarter on Wednesday, with sales falling more than expected. The Franco-Italian firm also trimmed its capital expenditure plans for the year of 2025, citing current market conditions as a reason. STMicro's capex plan is now slightly below $2 billion, from a range of 2$ to $2.3 previously. The firm also said its cost-cutting plan "remains on schedule" after it faced opposition in Italy over its implementation. (Reporting by Nathan Vifflin in Gdansk; editing by Matt Scuffham)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)