STMicroelectronics 1st-Qtr Sales to Rise at Least 46%
Paris, March 20 (Bloomberg) -- STMicroelectronics NV, Europe's biggest chipmaker, said first-quarter sales will rise at least 46 percent, fueled by demand from companies such as mobile phone makers. ST also proposed a three-for-one stock split.
ST's shares closed up 17.3 euros, or 9.4 percent, at 201.9 euros ($195.75) in Paris. Sales for the three months ending April 1 are expected to exceed $1.6 billion, from $1.1 billion in first- quarter 1999, the company said. Fully diluted earnings per share are also forecast to show a significant quarter-to-quarter gain.
Gains in sales and earnings are being driven by rising chip sales from rapid growth in Internet use and mobile phones, according to a Gartner Group Inc. unit. Industry sales, which rose 18 percent to $160 billion in 1999, are forecast to increase even faster this year, Dataquest recently said.
``The expected first-quarter numbers prove that ST's product and investment strategy over the past down cycle were spot on and it is now in a position to reap the just rewards,' said Eric Burkel, an analyst with Handelsbanken Markets, who has a ``strong buy' rating on the shares. This year ``should prove to be a record year for the company.'
The company said it will propose a three-for-one stock split. It will pay a dividend of 9 cents per share.
In January, ST said that fourth-quarter net income rose 51 percent to $184.3 million, or 62 cents per share, from $121.8 million, or 42 cents per share, in the year-earlier period.
Mar/20/2000 11:50 |
