STMicroelectronics 1Q Net Profit, Revenue Rose Amid High Chip Demand

By Mauro Orru

STMicroelectronics NV said Thursday that net profit and revenue for the first quarter increased as demand for chips remains high amid a global shortage.

The European chip maker said first-quarter net profit rose to $364 million from $192 million in the first quarter of 2020.

Quarterly net revenue climbed to $3.02 billion from $2.23 billion.

Gross profit for the quarter rose to $1.18 billion from $846 million with a gross margin of 39.0%, while operating income increased to $440 million from $231 million with an operating margin of 14.6%.

STMicroelectronics had expected net revenue of $2.93 billion at the midpoint, with gross margin at about 38.5%.

For the second quarter, the company expects net revenue of $2.9 billion at the midpoint, with a gross margin of about 39.5%.

Capex for 2021 should amount to around $2 billion, it said.

"We will drive the company based on a plan for FY21 revenues of $12.1 billion, plus or minus $150 million, a year-over-year increase of 18.4% at the midpoint. This growth is expected to be driven by strong dynamics in all end markets we address and our engaged customer programs," Chief Executive Jean-Marc Chery said.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

April 29, 2021 01:31 ET (05:31 GMT)

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