STMicroelectronics (STM, Financial) reported a decline in both net profit and sales for the third quarter and revised its annual performance forecast for the third time this year. The downturn is attributed to continued weak demand for chips in the automotive and industrial equipment sectors.
The European chipmaker announced a comprehensive plan to reshape its manufacturing footprint and reduce costs throughout the company. CEO Jean-Marc Chery stated that this initiative aims to save up to several hundred million dollars annually by the end of 2027.
The company anticipates full-year revenue to be approximately $13.27 billion, marking a decline of over 23% compared to 2023, and falling short of the previous forecast range of $13.2 billion to $13.7 billion. Additionally, the gross margin is expected to be slightly below 40%.
For the third quarter, STMicroelectronics reported a net profit of $351 million, reflecting a near 68% decrease year-on-year. Revenue also fell by nearly 27% to $3.25 billion.
