October 23, 2012 / 11:55 PM / 5 years ago

UPDATE 1-ST Micro's revenue lags, targets $150 mln savings

SAN FRANCISCO, Oct 23 (Reuters) - STMicroelectronics NV posted a third-quarter loss on revenue just under analysts' expectations, pressured by weakening global demand and persistent losses at its mobile chip venture with Ericsson .

Europe's top chipmaker predicted its fourth quarter revenue would range from a 5 percent decline to a 2 percent increase, underscoring its struggle to revive growth.

STMicro said on Tuesday it was streamlining manufacturing processes and taking other steps to try and save $150 million annually, adding it will present a "new" strategic plan in December to get the company back on track.

Earlier this month, STMicro and Ericsson said they had hired an adviser to review strategic options for their money-losing venture.

On Tuesday, ST Ericsson reported a third-quarter net loss of $190 million on sales of $359 million, and projected flat sales in the fourth quarter.

Analysts had expected the iPhone 5, which uses STMicro's "MEM" chips, to boost its third-quarter sales, but they were cautious on fourth-quarter demand given weak computer sales and macroeconomic uncertainty that could dent demand for the company's chips for cars.

STMicro reported an 11.3 percent year-over-year slide in third-quarter revenue to $2.17 billion, slightly below the $2.19 billion average forecast on Thomson Reuters I/B/E/S.

Among its markets, revenue from Asia was largely flat, but rose 5 percent in Europe, Middle East and Africa from the previous quarter.

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