FILE PHOTO: The logo of electronics and semiconductors manufacturer STMIcroelectronics is seen outside a company building in Montrouge, near Paris, France, July 12, 2022. REUTERS/Sarah Meyssonnier/File Photo
(Reuters) - STMicroelectronics (ST) pushed back its long-term financial forecasts on Wednesday, following three outlook cuts this year amid a slump in markets for the industrial and automotive chips it makes.
ST, one of Europe's largest semiconductor firms, said it aimed to reach the revenue target of $20 billion and an operating margin of above 30% by 2030, instead of the previously forecast 2027.
It also gave new guidance for 2027-2028, targeting revenue of $18 billion and an operating margin of 22-24%.
"ST expects to exit 2027 with high triple-digit million-dollar savings compared to the current cost base," the company said in the statement ahead of its investor day.
ST had first flagged the launch of a company-wide program to reshape its manufacturing footprint with its third-quarter earnings, but did not elaborate where those savings would come from.
Investors and analysts will be looking to get some details on the plan during Wednesday's event. (This story has been corrected to say that targets were delayed to 2030, not maintained, in paragraphs 1 and 2)
(Reporting by Nathan Vifflin and Toby Sterling; Editing by Kim Coghill and Milla Nissi)
