By Cecilia Butini 
 

STMicroelectronics NV raised its revenue guidance for the year after a difficult second quarter in which it posted a sharp decline in profits.

The European semiconductor chip maker now expects revenue growth in the second half of the year to push yearly revenue to between $9.25 billion and $9.65 billion, it said Thursday. This compares with a previous expectation of between $8.8 billion and $9.5 billion.

STMicroelectronics now targets capital expenditure of around $1.2 billion for the year, compared with previous guidance of between $1 billion and $1.2 billion.

The updated guidance came as the company reported that second-quarter net profit fell 44% from a year earlier to $90 million. STMicroelectronics' performance for the period was hit by lower revenue, which fell 4% to $2.09 billion.

For the third quarter, the chip maker expects revenue of $2.45 billion at mid-point, with gross margin of about 36%.

"During the second quarter, we returned to normal operations," Jean-Marc Chery said.

 

Write to Pietro Lombardi at pietro.lombardi@dowjones.com; @pietrolombard10

 

(END) Dow Jones Newswires

July 23, 2020 02:14 ET (06:14 GMT)

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