UPDATE 1-STMicro posts 1st-qtr loss; hurt by dollar, charges

Mon Apr 28, 2008 11:32pm BST
 
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(Adds 2nd-quarter forecast, share movement)

SAN FRANCISCO, April 28 (Reuters) - STMicroelectronics NV (STM.PA: Quote, Profile, Research) posted a quarterly loss on Monday because of charges related to the spin-off of a business unit and a weak dollar.

The first-quarter net loss was $84 million, or 9 cents per share, compared with year-earlier net income of $74 million, or 8 cents per share. Revenue rose to $2.48 billion from $2.28 billion, helped by growth in the company's industrial and telecommunications businesses.

Excluding some items, STMicro said net income per share was 13 cents in the period.

Analysts, on average, had expected the Franco-Italian chipmaker to report earnings before some costs of 17 cents per share and revenue of $2.51 billion, according to Reuters Estimates.

STMicro shares fell 1 percent in extended trading following the earnings report after closing down 0.5 percent at $11.54 on the New York Stock Exchange.

Restructuring costs and other expenses related to the spinoff of STMicro's flash-memory unit hurt results in the period, as did the weakening of the dollar against the euro, STMicro said.

"Due to the continued and substantial decline of the U.S. dollar, our profitability improvements continue to be absorbed by negative currency fluctuations," Chief Executive Carlo Bozotti said in a statement.   Continued...

 
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