STMicroelectronics said they expect any slowdown in new orders, after a first half that exceeded expectations, but the difficulties of the ST-Ericsson joint venture have disappointed for the second consecutive quarter.
The European leader in the manufacture of semiconductors published Thursday adjusted earnings of 18 cents per share, which was entered in above expectations, and said providing a sequential increase of its turnover included between 2% and 7% in the third quarter.
"We see today a strong flow of new orders, there is no slowdown," said Group CEO Bozotti during a conference call.
Around 10:10, the title fell by 2.57%, to 6.56 euros, compared with a stability of the sector index of technology stocks.
Several analysts have cited the poor performance of ST-Ericsson, the joint venture between STMicro and Ericsson, to explain this decline.
"The continuing recovery is confirmed in this publication, except for the ST-Ericsson joint venture, where the situation continues to worsen," said one trader.
The subsidiary had already, at the publication of the first quarter, overshadowed the strong performance of STMicroelectronics, and many analysts continue to believe that the recovery of this subsidiary is the main weak point of the Franco-Italian.
"ST-Ericsson is in line with its restructuring plan. A major transition can not be achieved overnight (…).We remain committed to this JV, "said Carlo Bozotti.
The subsidiary has seen its sales drop sharply, while it tries to reposition its product offering, overshadowing the first positive effects of restructuring on the profitability of the JV.
STMicroelectronics has published a turnover up 8.9% sequentially to $ 2.53 billion, while the Reuters Editorial was counting on average quarterly sales of 2.513 billion dollars, on Based on estimates of 14 analysts, and earnings per share of 14 cents, according to 12 estimates.
The group, which had raised its forecast for the end of April the market for semiconductors, has confirmed an expected growth of 20% in 2010.