STMicro adds to chip sector woes with warning

NEWS Chip giant STMicroelectronics has added the woes of the depressed semiconductor market by saying it sees little hope of a turnaround in the first half of 2002. The French-Italian company said it expects to see a further decline in revenues in the region of three to seven per cent during the current first quarter. Fourth quarter results for the company showed profits down 90 per cent, to E51.2m (£31.6m), on the comparable quarter 12 months previously. Revenue was down 34 per cent to E1.55bn (£1.01bn). Shares in STMicro fell five euro cents to E33.98 (£20.96).