"In the fourth quarter, due to the ongoing soft market conditions, we expect net revenues to decrease sequentially by about 3.5 percent," STMicro Chief Executive Carlo Bozotti said in a statement on Wednesday.

He added that all but one of STMicro's major product groups would suffer sales declines in the final quarter.

Net revenue dropped to $1.89 billion (1.48 bln euros) from $2.01 billion in the year-ago quarter, reflecting on-going restructuring moves. The latest quarter's revenue was below the $1.93 billion average of analyst estimates, according to Thomson Reuters I/B/E/S.

Analysts had substantially lowered their estimates for third-quarter results ahead of the STMicroelectronics report.

(1 euro = 1.2740 US dollar)

(Reporting by Gwenaelle Barzic in Paris and Eric Auchard in Frankfurt; Editing by James Regan)