STMicroelectronics Assumes EUR/USD at 1.18 in 2Q -- Currency Comment
April 29 2021 - 7:59AM
Dow Jones News
By Mauro Orru
STMicroelectronics NV's guidance for the second quarter assumes
the euro will average $1.18 against the dollar, a lower rate than
its first-quarter assumption of $1.20 and weaker than the euro's
current level.
The euro currently trades at $1.2130.
STMicroelectronics forecasts second-quarter net revenue of $2.9
billion at the midpoint, and a gross margin of about 39.5%.
"This outlook is based on an assumed effective currency exchange
rate of approximately $1.18 = €1.00 for the 2021 second quarter and
includes the impact of existing hedging contracts," the European
chip maker said.
The company had factored in an exchange rate of approximately
$1.20 at the end of January when it issued guidance for the first
quarter.
The euro's closing level on March 31 was $1.1731, according to
FactSet. It has risen since then, reaching a two-month high of
1.2151 earlier Thursday.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
April 29, 2021 07:44 ET (11:44 GMT)
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