By Giulia Petroni 
 

STMicroelectronics NV said Thursday that net profit fell in the third quarter while revenue rose due to improved market conditions.

The European chip maker said profit came in at $242 million in the period compared with $302 million the year before, with operating profit falling to $329 million.

Operating margin fell to 12.3%, while gross margin was 36%.

Revenue in the quarter increased 4.4% on year to $2.67 billion.

"Demand for automotive products, our engaged customer programs in personal electronics, as well as microcontrollers, were the main factors that contributed to this result," said Chief Executive Jean-Marc Chery.

Looking at the fourth quarter, STMicroelectronics said it expects revenue at $2.99 billion, plus or minus 350 basis points. Gross margin is expected to be about 38.5%, plus or minus 200 basis points.

For the full year, the company said revenue are expected at the mid-point to be around $9.97 billion, or 4.3% up on year, with a double-digit operating margin.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

October 22, 2020 01:43 ET (05:43 GMT)

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