STMicroelectronics, one of Europe’s leading semiconductor manufacturers, announced on Thursday that it anticipates a further decline in sales during the first quarter of 2025, as the downturn in its primary markets continues into the new year. CEO Jean-Marc Chery stated, “Our book-to-bill ratio remained below 1 in Q4 as we continued to experience a delayed recovery and inventory adjustments in the Industrial sector, along with a slowdown in the Automotive sector, particularly in Europe.” The company, which counts Tesla and Apple among its clients, projects first-quarter revenue of $2.51 billion, a decrease from the $3.47 billion reported in the same quarter last year. This represents a 27.6% decline for the upcoming quarter, compared to an 18.4% drop during the same period last year.
STMicro had previously indicated in November that its revenue would decline more than usual in the typically weak first quarter, but the latest guidance fell short of market expectations. Analysts surveyed by LSEG had predicted first-quarter revenue of $2.72 billion. Additionally, Texas Instruments, a U.S.-based competitor and industry benchmark, recently forecasted first-quarter profits below market estimates due to an inventory surplus in its key automotive and industrial sectors.
In its fourth-quarter results, STMicro reported a net income of $341 million, surpassing analysts’ average estimate of $326 million, driven by increased revenues in personal electronics despite a decline in industrial revenues. The company also shared its capital expenditure plans for 2025, intending to invest between $2 billion and $2.3 billion, a reduction from $2.53 billion last year and $4 billion in 2023.
