(Reuters) – STMicroelectronics (ST) on Wednesday stood by the 2030 financial targets laid out in 2022, despite three outlook cuts this year amid a slump in markets for the industrial and automotive chips it makes.
Europe’s largest semiconductor manufacturer by sales reiterated its forecast for revenue of $20 billion by 2030, with an operating margin of above 30%.
It also gave a mid-term plan for 2027-2028, targeting revenue of $18 billion and operating margin of 22% to 24%, supported by to its cost saving plan.
“ST expects to exit 2027 with high triple-digit million-dollar savings compared to the current cost base,” the company said in the statement ahead of its investor day.
ST had first flagged the launch of a company-wide program to reshape its manufacturing footprint with its third-quarter earnings, but did not elaborate where those savings would come from.
Investors and analysts will be looking to get some details on the plan during Wednesday’s event.
(Reporting by Nathan Vifflin and Toby Sterling; Editing by Kim Coghill)
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