(Reuters) -European chipmaker STMicroelectronics on Thursday lowered its full-year sales guidance, the latest semiconductor company to struggle with weakening demand from carmakers and a further decline in orders from laptop and phone companies.

The warning came after the company posted lower-than-expected first-quarter results.

The company, whose clients include Tesla and Apple ( AAPL ), said it expects revenue in the range of $14 billion to $15 billion for 2024, down from its previous forecast range of $15.9 billion to $16.9 billion.

Analysts polled by LSEG were expecting revenue of $16.1 billion for the year.

"During the quarter, automotive semiconductor demand slowed down compared to our expectations, entering a deceleration phase, while the ongoing industrial correction accelerated," said CEO Jean-Marc Chery in a statement.

The French-Italian company posted first quarter earnings before interest and tax (EBIT) of $551 million, down 54% from a year earlier and below the $603.82 million expected by analysts in an LSEG poll.

Revenue fell 18% to $3.46 billion, missing analysts' expectations of $3.61 billion.

Weakness in auto and industrial demand have been weighing on the sector, while investors remain cautious amid high interest rates, with escalating tensions in the Middle East increasing fears.