(Updates with company’s forecast in fifth paragraph.)
Oct. 20 (Bloomberg) -- Freescale Semiconductor Holdings, the chipmaker mostly owned by a private-equity group including Blackstone Group LP and TPG Capital, said its third-quarter loss narrowed as the company received an insurance settlement.
The loss was $88 million, or 36 cents a share, compared with a loss of $156 million, or 79 cents, a year earlier, the Austin, Texas-based company said in a statement. Sales slipped less than 1 percent to $1.14 billion. Analysts on average estimated the company would report a loss of 17 cents on sales of $1.13 billion, according to data compiled by Bloomberg.
The company last month said slowing demand in its industrial and networking businesses would result in lower sales than it had originally projected. That cut mirrored reduced forecasts from rival analog chipmakers such as Texas Instruments Inc. and Intersil Corp.
“Looking ahead to the fourth quarter, we expect the weakness in the semiconductor market to continue to negatively impact our business,” Chief Executive Officer Rich Beyer said in the statement.
Fourth-quarter sales will be $1 billion to $1.06 billion, Beyer said on a conference call to discuss earnings. That compares with an average analyst estimate of $1.13 billion.
Analog chips are included in everything from space hardware to household electronics, making their sales an indicator of demand across the economy.
In the third quarter, Freescale received part of a settlement for an insurance claim related to its plant in Sendai, Japan, which was damaged by the earthquake in March. The third-quarter loss also included a $55 million charge related to debt reorganization, the company said.
Freescale shares rose 2.5 percent to $12.15 at the close in New York. The stock has fallen 33 percent since it began trading after its initial public offering.
The company sold 43.5 million shares at $18 each in its IPO on May 25, raising 25 percent less than it originally sought. The IPO price reflected a 50 percent discount to the average of $36 that investors paid for the company, according to a regulatory filing.
--Editors: Jillian Ward, Romaine Bostick
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