STMicroelectronics NV ADR RegS (STM.US) reaffirms its financial targets for 2030, expecting cost-saving initiatives to support mid-term performance.

STMicroelectronics NV ADR RegS (STM.US) on Wednesday maintained its financial targets for 2030 set in 2022, despite having lowered its annual revenue expectations three times this year due to weakness in the industrial and automotive chip markets. STMicroelectronics NV ADR RegS reiterated its expectations to achieve revenue of $20 billion and an operating profit margin of over 30% by 2030. The company also set mid-term targets for 2027-2028, aiming to achieve revenue of $18 billion and an operating profit margin of 22%-24% with the support of cost-saving plans. The company stated in a statement: "It is expected that millions of dollars will be saved by 2027 compared to the current cost base." In its financial report released at the end of October, STMicroelectronics NV ADR RegS reported a 27% year-on-year decrease in revenue to $3.25 billion in Q3, and a 67.8% year-on-year decrease in net profit to $351 million. The reason for the decline in Q3 revenue was the increasingly unfavorable factors faced by its automotive industry customers. The company stated that full-year revenue is expected to reach approximately $13.27 billion in 2024, a 23% decrease from the previous year, marking the third time this year that the company has lowered its annual revenue expectations. Additionally, STMicroelectronics NV ADR RegS announced during the release of its third-quarter financial report that it will launch a company-wide plan to reshape its manufacturing operations, but did not specify where the saved funds will come from. Investors and analysts are expected to learn some details of this plan at the company's investor day event on Wednesday.