LONDON, May 15 (Reuters) - Chipmaker STMicroelectronics expects revenue for 2018 to grow faster than market forecasts thanks to broad-based growth in automotive, industrials and a second-half pick-up in its imaging business, the company said on Tuesday.
The Franco-Italian electronic components maker expects to grow between 14-17 percent for the 2018 year, out-going Chief Executive Carlo Bozotti told investors at the company’s annual capital markets presentation event taking place in London.
“This is more than what we anticipated,” Bozotti said, regarding the company’s raised outlook. “For this reason, we have reviewed our capital spending plan and (made) a moderate increase.”
Analysts, on average, had forecast 2018 revenues to grow around 14 percent, according to Thomson Reuters data. Last year, the company enjoyed a nearly 20 percent increase in revenue to $8.35 billion.
The company also said it planned to increase capital spending for research, manufacturing and assembly to around $1.2 billion and $1.3 billion for the full year, up from its previous target of $1.1 billion.
STMicroelectronics’ shares were up 2.7 percent in Paris by 0815 GMT. (Reporting by Eric Auchard in London; Editing by Sudip Kar-Gupta)