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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (63135)	4/23/2002 11:51:27 PM
From: StanX Long	Read Replies (1) \| Respond to of 70976

STMicroelectronics higher on Q1 gross margins, Q2 sales outlook host.wallstreetcity.com PARIS, Apr 23, 2002 (AFX-Europe via COMTEX) -- STMicroelectronics shares were sharply higher in morning trading on higher than expected first quarter gross margins and encouraging signs that the chip sector recovery was underway after the group forecast 10 pct sales growth in the second quarter, dealers said. At 10.15 am, STMicroelectronics was up 1.17 eur or 3.38 pct at 35.79 The CAC-40 index was up 15.17 points or 0.33 pct at 4,574.63. "It's the group's gross margins which were stronger-than-expected," which is lifting the share this morning said a dealer. "The figures were really very, very good." STMicroelectronics reported first-quarter gross margins of 33.4 pct, up 170 basis points above the 31.7 pct reported in the fourth-quarter, but under the 44.5 pct reported in the same quarter a year ago. Fortis Bank analyst Stephane Houri said the group's forecast for second quarter margins had also surprised on the upside. "STM is also looking for another 200 to 300 basis point rise in its gross margin (to 35.4-36.4 per cent), ie above our projection for Q2 or, for that matter, Q3. This constitutes excellent news and should amplify the growth in net profit."