European Stocks to Watch: STMicroelectronics

Shares in Europe's largest chipmaker STMicroelectronics fell 4.6% following disappointing quarterly results and a cut in its growth expectations for the industry.

STMicro posted a second-quarter loss late Tuesday of $758 million compared with a profit of $168 million in the same period last year. Revenue fell to $2.41 billion from $2.49 billion.

The company cut its 2007 sales-growth forecast for the semiconductor industry to less than 2% from previous expectations of 4% to 5% in April.

Business Objects (Up 4%) Shares in the software maker gained after reporting its quarterly profit almost tripled, due to strong European demand and benefiting from recent acquisitions.

Nexans (Down 3.7%) Strong sales growth in the energy sector boosted operating profit margins in Europe's biggest cable, but net profit fell to $164.4 million in the first half of 2006.