Jan 30 (Reuters) - STMicroelectronics (
STMPA.EQ), one of Europe's largest chipmakers, said on Thursday it expected sales to fall further in the first quarter of 2025, as the downturn seen in its key markets drags on into the new year.
"Our book-to-bill ratio remained below 1 in Q4 as we continued to face a delayed recovery and inventory correction in Industrial and a slowdown in Automotive, both particularly in Europe," CEO Jean-Marc Chery said in a statement.
The company, whose clients include Tesla and Apple , sees first-quarter revenue of $2.51 billion, down from the $3.47 billion it reported a year earlier.
That implies a 27.6% decline for the first quarter, compared to a 18.4% decrease in the same period last year.
STMicro had already warned in November that its revenue would decline more than usual in the seasonally weak first quarter.
But the guidance was even lower than what the market was expecting. Analysts polled by LSEG had forecast first-quarter revenue of $2.72 billion.
STMicro's U.S.-based peer Texas Instruments , considered an industry bellwether, last week also forecast first-quarter profit below market estimates, as it grapples with an inventory buildup in its key automotive and industrial markets.
STMicro reported a fourth-quarter net income of $341 million, beating analysts' average estimate of $326 million, driven by higher revenues in personal electronics and despite lower revenues in industrial.
It also outlined its capital expenditure plans for 2025, with plans to invest between $2 billion and $2.3 billion. That is down from $2.53 billion last year and $4 billion in 2023.
