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April 24, 2019, 1:22 a.m. EDT

STMicroelectronics profit hit by pricing pressure

By Max Bernhard

STMicroelectronics NV (STM.FR) said Wednesday that first-quarter net profit slumped, weighed down by pricing pressure and currency effects.

Net profit in the quarter fell by 25% to $178 million compared with $239 million a year earlier, the chipmaker said. Revenue declined 6.7% to $2.08 billion.

The company said it expects second-quarter revenue to grow about 2.4% compared with the first quarter, plus or minus 350 basis points, and a gross margin of about 38.5%, plus or minus 200 basis points.

"For the full year 2019, we expect net revenues to be in the range of about $9.45 [billion] to $9.85 billion. We therefore plan for strong sequential growth in the second half of the year compared with the first half, across the Industrial, Automotive and Personal Electronics end markets," Chief Executive Jean-Marc Chery said.

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