ST boosted by strong auto and industrial sales
Strong demand in almost all of the markets it serves has boosted STMicroelectronics' half year revenues to $4.856million, more than 32% higher than the same period in 2009. According to chief executive Carlo Bozotti, sales to automotive and industrial customers led the way, with sales growing by 52% over the same period in 2009.
The results see ST returning to profit after operating losses in 2009. The first half of 2010 saw a profit of $107m, compared to the loss of $724m in the first half of 2009. Along with increased sales, Bozotti noted that the improvement in financial performance was also down to improved manufacturing efficiencies. However, the performance was somewhat dulled by losses at ST-Ericsson.
Bozotti believes third quarter revenues will be between 2% and 7% higher than those of Q2, converting to a year on year growth somewhere in the range from 13 to 19%. "We continue to increase capacity to support the strong demand of our customers and are encouraged by the quality of our backlog," he commented.
