ST Micro posts $289 million 3Q loss

GENEVA - European chip maker STMicroelectronics said Wednesday it made a net loss of $289 million in the third quarter mainly because of a substantial downturn in the automotive industry.

The loss, which amounts to 32 US cents per share, compares with a net profit of $187 million for the same period last year, STMicro said. Net revenue for the quarter ending in September was $2.7 million compared with $2.6 million for the same period last year.

Revenue was driven by growth in the computer and telecommunications business, but slowed by a sharp decrease in car sales, STMicro said.

The figure includes proceeds from ST-NXP Wireless, a joint venture with Ericsson, that STMicro started in August.

Without NXP Wireless, net revenue for the quarter was $2.5 million, the company said.

The quarterly result include a $76 million writedown for research and development, $57 million in costs related to the purchase of ST-NXP Wireless, as well as a $344 million charge for the spin off of its flash memory business into a new company, Numonyx, said STMicro.

Shares in STMicro were up 4.45 percent at 6.57 euros ($8.23) on the Paris exchange.

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