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25.04.2024 07:00:50 - Press Release: STMicroelectronics Reports 2024 -3-
Press Release: STMicroelectronics Reports 2024 First Quarter Financial Results
PR No: C3254C
STMicroelectronics Reports 2024 First Quarter Financial Results
===
-- Q1 net revenues $3.47 billion; gross margin 41.7%; operating margin
15.9%; net income $513 million
-- Q1 free cash flow1 $(134) million after Net Capex1 of $967 million
-- Business outlook at mid-point: Q2 net revenues of $3.2 billion and gross
margin of 40%
===
Geneva, April 25, 2024 -- STMicroelectronics N.V. ("ST") (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the first quarter ended March 30, 2024. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
ST reported first quarter net revenues of $3.47 billion, gross margin of 41.7%, operating margin of 15.9%, and net income of $513 million or $0.54 diluted earnings per share.
Jean-Marc Chery, ST President & CEO, commented:
===
-- "Q1 net revenues and gross margin both came in below the midpoint of our
business outlook range, driven by lower revenues in Automotive and
Industrial, partially offset by higher revenues in Personal Electronics."
-- "On a year-over-year basis, Q1 net revenues decreased 18.4%, operating
margin decreased to 15.9% from 28.3% and net income decreased 50.9% to
$513 million."
-- "During the quarter, Automotive semiconductor demand slowed down compared
to our expectations, entering a deceleration phase, while the ongoing
Industrial correction accelerated."
-- "Our second quarter business outlook, at the mid-point, is for net
revenues of $3.2 billion, decreasing year-over-year by 26.0% and
decreasing sequentially by 7.6%; gross margin is expected to be about
40%."
-- "We will now drive the Company based on a revised plan for FY24 revenues
in the range of $14 billion to $15 billion. Within this plan, we expect a
gross margin in the low 40's."
-- "We plan to maintain our Net Capex1 plan for FY24 at about $2.5 billion
focusing on our strategic manufacturing initiatives."
===
Quarterly Financial Summary (U.S. GAAP)
===
(US$ m, except per
Diluted Earnings Per
===
First Quarter 2024 Summary Review
Reminder: On January 10, 2024, ST announced a new organization which implied a change in segment reporting starting Q1 2024. Comparative periods have been adjusted accordingly. See Appendix for more detail.
===
-------------------------------------------- ----- ----- ----- ------ ------ Analog products, MEMS and Sensors (AM&S)
segment 1,217 1,418 1,400 -14.2% -13.1%
-------------------------------------------- ----- ----- ----- ------ ------ Power and discrete products (P&D) segment 820 965 909 -15.1% -9.8%
-------------------------------------------- ----- ----- ----- ------ ------ Subtotal: Analog, Power & Discrete,
MEMS and Sensors (APMS) Product Group 2,037 2,383 2,309 -14.5% -11.8%
-------------------------------------------- ----- ----- ----- ------ ------ Microcontrollers (MCU) segment 950 1,272 1,448 -25.3% -34.4%
-------------------------------------------- ----- ----- ----- ------ ------ Digital ICs and RF Products (D&RF) segment 475 623 486 -23.8% -2.1%
-------------------------------------------- ----- ----- ----- ------ ------ Subtotal: Microcontrollers, Digital
ICs and RF products (MDRF) Product Group 1,425 1,895 1,934 -24.8% -26.3%
-------------------------------------------- ----- ----- ----- ------ ------ Others 3 4 4 - -
-------------------------------------------- ----- ----- ----- ------ ------ Total Net Revenues 3,465 4,282 4,247 -19.1% -18.4%
-------------------------------------------- ----- ----- ----- ------ ------
===
Net revenues totaled $3.47 billion, representing a year-over-year decrease of 18.4%. Year-over-year net sales to OEMs and Distribution decreased 11.5% and 30.8%, respectively. On a sequential basis, net revenues decreased 19.1%, 320 basis points lower than the mid-point of ST's guidance.
Gross profit totaled $1.44 billion, representing a year-over-year decrease of 31.6%. Gross margin of 41.7%, 60 basis points below the mid-point of ST's guidance, decreased 800 basis points year-over-year, mainly due to the combination of sales price and product mix, unused capacity charges and reduced manufacturing efficiencies.
Operating income decreased 54.1% to $551 million, compared to $1.20 billion in the year-ago quarter. ST's operating margin decreased 1,240 basis points on a year-over-year basis to 15.9% of net revenues, compared to 28.3% in the first quarter of 2023.
By reportable segment, compared with the year-ago quarter:
In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:
Analog products, MEMS and Sensors (AM&S) segment:
===
-- Revenue decreased 13.1% mainly due to a decrease in MEMS and Imaging.
-- Operating profit decreased by 44.8% to $185 million. Operating margin was
15.2% compared to 23.9%.
===
Power and Discrete products (P&D) segment:
===
-- Revenue decreased 9.8% mainly due to a decrease in Discrete.
-- Operating profit decreased by 41.6% to $138 million. Operating margin was
16.8% compared to 26.0%.
===
In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
Microcontrollers (MCU) segment:
===
-- Revenue decreased 34.4% mainly due to a decrease in GP MCU.
-- Operating profit decreased by 66.7% to $185 million. Operating margin was
19.5% compared to 38.3%.
===
Digital ICs and RF products (D&RF) segment:
===
-- Revenue decreased 2.1% due to a decrease in ADAS more than offsetting an
increase in RF Communications.
-- Operating profit decreased by 8.2% to $150 million. Operating margin was
31.8% compared to 33.9%.
===
Net income and diluted Earnings Per Share decreased to $513 million and $0.54 respectively compared to $1.04 billion and $1.10 respectively in the year-ago quarter.
Cash Flow and Balance Sheet Highlights
===
Trailing 12 Months
Net cash from
operating
Free cash flow
(non-U.S.
===
Net cash from operating activities was $859 million in the first quarter compared to $1.32 billion in the year-ago quarter.
Net Capex (non-U.S. GAAP)(1) was $967 million in the first quarter compared to $1.09 billion in the year-ago quarter.
Free cash flow (non-U.S. GAAP)(1) was negative at $134 million in the first quarter, compared to positive $206 million in the year-ago quarter.
Inventory at the end of the first quarter was $2.69 billion, compared to $2.70 billion in the previous quarter and $2.87 billion in the year-ago quarter. Days sales of inventory at quarter-end was 122 days compared to 104 days in the previous quarter and 122 days in the year-ago quarter.
In the first quarter, ST paid cash dividends to its stockholders totaling $48 million and executed a $87 million share buy-back as part of its current share repurchase program.
ST's net financial position (non-U.S. GAAP)(1) was $3.13 billion as of March 30, 2024, compared to $3.16 billion as of December 31, 2023 and reflected total liquidity of $6.24 billion and total financial debt of $3.11 billion. Adjusted net financial position (non-U.S. GAAP)(1) , taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2.78 billion as of March 30, 2024.
Business Outlook
MORE TO FOLLOW) Dow Jones Newswires
April 25, 2024 01:00 ET (05:00 GMT)
Press Release: STMicroelectronics Reports 2024 -2-
ST's guidance, at the mid-point, for the 2024 second quarter is:
===
-- Net revenues are expected to be $3.2 billion, a decrease of 7.6%
sequentially, plus or minus 350 basis points.
-- Gross margin of 40%, plus or minus 200 basis points.
-- This outlook is based on an assumed effective currency exchange rate of
approximately $1.08 = EUR1.00 for the 2024 second quarter and includes
the impact of existing hedging contracts.
-- The second quarter will close on June 29, 2024.
===
Conference Call and Webcast Information
ST will conduct a conference call with analysts, investors and reporters to discuss its first quarter 2024 financial results and current business outlook today at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern Time (ET). A live webcast (listen-only mode) of the conference call will be accessible at ST's website, https://investors.st.com, and will be available for replay until May 10, 2024.
Use of Supplemental Non-U.S. GAAP Financial Information
This press release contains supplemental non-U.S. GAAP financial information.
Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information from other companies. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with ST's consolidated financial statements prepared in accordance with U.S. GAAP.
See the Appendix of this press release for a reconciliation of ST's non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures.
Forward-looking Information
Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management's current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors:
===
-- changes in global trade policies, including the adoption and expansion of
tariffs and trade barriers, that could affect the macro-economic
environment and adversely impact the demand for our products;
-- uncertain macro-economic and industry trends (such as inflation and
fluctuations in supply chains), which may impact production capacity and
end-market demand for our products;
-- customer demand that differs from projections;
-- the ability to design, manufacture and sell innovative products in a
rapidly changing technological environment;
-- changes in economic, social, public health, labor, political, or
infrastructure conditions in the locations where we, our customers, or
our suppliers operate, including as a result of macroeconomic or regional
events, geopolitical and military conflicts, social unrest, labor actions,
or terrorist activities;
-- unanticipated events or circumstances, which may impact our ability to
execute our plans and/or meet the objectives of our R&D and manufacturing
programs, which benefit from public funding;
-- financial difficulties with any of our major distributors or significant
curtailment of purchases by key customers;
-- the loading, product mix, and manufacturing performance of our production
facilities and/or our required volume to fulfill capacity reserved with
suppliers or third-party manufacturing providers;
-- availability and costs of equipment, raw materials, utilities,
third-party manufacturing services and technology, or other supplies
required by our operations (including increasing costs resulting from
inflation);
-- the functionalities and performance of our IT systems, which are subject
to cybersecurity threats and which support our critical operational
activities including manufacturing, finance and sales, and any breaches
of our IT systems or those of our customers, suppliers, partners and
providers of third-party licensed technology;
-- theft, loss, or misuse of personal data about our employees, customers,
or other third parties, and breaches of data privacy legislation;
-- the impact of intellectual property ("IP") claims by our competitors or
other third parties, and our ability to obtain required licenses on
reasonable terms and conditions;
-- changes in our overall tax position as a result of changes in tax rules,
new or revised legislation, the outcome of tax audits or changes in
international tax treaties which may impact our results of operations as
well as our ability to accurately estimate tax credits, benefits,
deductions and provisions and to realize deferred tax assets;
-- variations in the foreign exchange markets and, more particularly, the
U.S. dollar exchange rate as compared to the Euro and the other major
currencies we use for our operations;
-- the outcome of ongoing litigation as well as the impact of any new
litigation to which we may become a defendant;
-- product liability or warranty claims, claims based on epidemic or
delivery failure, or other claims relating to our products, or recalls by
our customers for products containing our parts;
-- natural events such as severe weather, earthquakes, tsunamis, volcano
eruptions or other acts of nature, the effects of climate change, health
risks and epidemics or pandemics in locations where we, our customers or
our suppliers operate;
-- increased regulation and initiatives in our industry, including those
concerning climate change and sustainability matters and our goal to
become carbon neutral by 2027 on scope 1 and 2 and partially scope 3;
-- epidemics or pandemics, which may negatively impact the global economy in
a significant manner for an extended period of time, and could also
materially adversely affect our business and operating results;
-- industry changes resulting from vertical and horizontal consolidation
among our suppliers, competitors, and customers; and
-- the ability to successfully ramp up new programs that could be impacted
by factors beyond our control, including the availability of critical
third-party components and performance of subcontractors in line with our
expectations.
===
Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as "believes", "expects", "may", "are expected to", "should", "would be", "seeks" or "anticipates" or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions.
Some of these risk factors are set forth and are discussed in more detail in "Item 3. Key Information -- Risk Factors" included in our Annual Report on Form 20-F for the year ended December 31, 2023 as filed with the Securities and Exchange Commission ("SEC") on February 22, 2024. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.
Unfavorable changes in the above or other factors listed under "Item 3. Key Information -- Risk Factors" from time to time in our Securities and Exchange Commission ("SEC") filings, could have a material adverse effect on our business and/or financial condition.
About STMicroelectronics
At ST, we are over 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud-connected autonomous things. We are committed to achieving our goal to become carbon neutral on scope 1 and 2 and partially scope 3 by 2027. Further information can be found at www.st.com.
For further information, please contact:
INVESTOR RELATIONS:
Céline Berthier
Group VP, Investor Relations
Tel: +41 22 929 58 12
celine.berthier@st.com https://www.globenewswire.com/Tracker?data=qSzpO4zzh4UU6vkP2E8Pf7zBW_sDxk-DSAGedksrWbu3yyldN3nq_JibLeqOvQe_NVl3EKgEhf4EMpuruKWvU8KGZN5Nk3_Id7L7V_I9NW8=
MEDIA RELATIONS:
Alexis Breton
Corporate External Communications
Tel: + 33 6 59 16 79 08
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April 25, 2024 01:00 ET (05:00 GMT)
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===
STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of U.S. dollars, except per share data
($))
Three months ended
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT
COMPANY STOCKHOLDERS 0.57 1.16
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT
COMPANY STOCKHOLDERS 0.54 1.10
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING
DILUTED EPS 942.3 945.6
STMicroelectronics N.V.
CONSOLIDATED BALANCE SHEETS
December
ASSETS
-------------------------------------------
Current assets:
Cash and cash equivalents 3,133 3,222 3,572 Short-term deposits 1,226 1,226 106 Marketable securities 1,880 1,635 841 Trade accounts receivable, net 1,787 1,731 2,013 Inventories 2,685 2,698 2,870 Other current assets 1,183 1,295 962 Total current assets 11,894 11,807 10,364 Goodwill 298 303 300 Other intangible assets, net 366 367 403 Property, plant and equipment, net 10,866 10,554 8,847 Non-current deferred tax assets 585 592 582 Long-term investments 22 22 11 Other non-current assets 942 808 697 13,079 12,646 10,840
Total assets 24,973 24,453 21,204 ----------- --------- -----------
LIABILITIES AND EQUITY
-------------------------------------------
Current liabilities:
Short-term debt 238 217 176 Trade accounts payable 1,642 1,856 2,095 Other payables and accrued liabilities 1,547 1,525 1,544 Dividends payable to stockholders 6 54 6 Accrued income tax 133 78 193 Total current liabilities 3,566 3,730 4,014 Long-term debt 2,875 2,710 2,488 Post-employment benefit obligations 372 372 337 Long-term deferred tax liabilities 49 54 55 Other long-term liabilities 912 735 445 4,208 3,871 3,325
Total liabilities 7,774 7,601 7,339 Commitment and contingencies
Equity
Parent company stockholders' equity
Common stock (preferred stock: 540,000,000
shares authorized, not issued; common
stock: Euro 1.04 par value, 1,200,000,000
shares authorized, 911,281,920 shares
issued, 900,848,535 shares outstanding
as of March 30, 2024) 1,157 1,157 1,157
Additional Paid-in Capital 2,931 2,866 2,693 Retained earnings 12,982 12,470 9,754 Accumulated other comprehensive income 468 613 546 Treasury stock (463) (377) (352) ----------- --------- -----------
Total parent company stockholders'
equity 17,075 16,729 13,798
Noncontrolling interest 124 123 67 Total equity 17,199 16,852 13,865 Total liabilities and equity 24,973 24,453 21,204 ----------- --------- -----------
STMicroelectronics
N.V.
SELECTED CASH FLOW
DATA
------------------- ------------------------ ------------------------ ------------------------
Cash Flow Data (in
Net Cash from
operating
Net Cash used in
investing
Net Cash from (used
in) financing
Net Cash increase
Selected Cash Flow
Data (in US$
Depreciation &
Net payment for
Capital
Dividends paid to
Change in
===
Appendix
MORE TO FOLLOW) Dow Jones Newswires
April 25, 2024 01:00 ET (05:00 GMT)
PR No: C3254C
STMicroelectronics Reports 2024 First Quarter Financial Results
===
-- Q1 net revenues $3.47 billion; gross margin 41.7%; operating margin
15.9%; net income $513 million
-- Q1 free cash flow1 $(134) million after Net Capex1 of $967 million
-- Business outlook at mid-point: Q2 net revenues of $3.2 billion and gross
margin of 40%
===
Geneva, April 25, 2024 -- STMicroelectronics N.V. ("ST") (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the first quarter ended March 30, 2024. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
ST reported first quarter net revenues of $3.47 billion, gross margin of 41.7%, operating margin of 15.9%, and net income of $513 million or $0.54 diluted earnings per share.
Jean-Marc Chery, ST President & CEO, commented:
===
-- "Q1 net revenues and gross margin both came in below the midpoint of our
business outlook range, driven by lower revenues in Automotive and
Industrial, partially offset by higher revenues in Personal Electronics."
-- "On a year-over-year basis, Q1 net revenues decreased 18.4%, operating
margin decreased to 15.9% from 28.3% and net income decreased 50.9% to
$513 million."
-- "During the quarter, Automotive semiconductor demand slowed down compared
to our expectations, entering a deceleration phase, while the ongoing
Industrial correction accelerated."
-- "Our second quarter business outlook, at the mid-point, is for net
revenues of $3.2 billion, decreasing year-over-year by 26.0% and
decreasing sequentially by 7.6%; gross margin is expected to be about
40%."
-- "We will now drive the Company based on a revised plan for FY24 revenues
in the range of $14 billion to $15 billion. Within this plan, we expect a
gross margin in the low 40's."
-- "We plan to maintain our Net Capex1 plan for FY24 at about $2.5 billion
focusing on our strategic manufacturing initiatives."
===
Quarterly Financial Summary (U.S. GAAP)
===
(US$ m, except per
share data) Q1 2024 Q4 2023 Q1 2023 Q/Q Y/Y ----------------------- ------------- ------- ------- -------- ---------- Net Revenues $3,465 $4,282 $4,247 -19.1% -18.4% ----------------------- ------------- ------- ------- -------- ---------- Gross Profit $1,444 $1,949 $2,110 -26.0% -31.6% ----------------------- ------------- ------- ------- -------- ---------- Gross Margin 41.7% 45.5% 49.7% -380 bps -800 bps ----------------------- ------------- ------- ------- -------- ---------- Operating Income $551 $1,023 $1,201 -46.1% -54.1% ----------------------- ------------- ------- ------- -------- ---------- Operating Margin 15.9% 23.9% 28.3% -800 bps -1,240 bps ----------------------- ------------- ------- ------- -------- ---------- Net Income $513 $1,076 $1,044 -52.4% -50.9% ----------------------- ------------- ------- ------- -------- ----------
Diluted Earnings Per
Share $0.54 $1.14 $1.10 -52.6% -50.9% ----------------------- ------------- ------- ------- -------- ----------
===
First Quarter 2024 Summary Review
Reminder: On January 10, 2024, ST announced a new organization which implied a change in segment reporting starting Q1 2024. Comparative periods have been adjusted accordingly. See Appendix for more detail.
===
Net Revenues by Reportable Segment (US$ Q1 Q4 Q1 m) 2024 2023 2023 Q/Q Y/Y
-------------------------------------------- ----- ----- ----- ------ ------ Analog products, MEMS and Sensors (AM&S)
segment 1,217 1,418 1,400 -14.2% -13.1%
-------------------------------------------- ----- ----- ----- ------ ------ Power and discrete products (P&D) segment 820 965 909 -15.1% -9.8%
-------------------------------------------- ----- ----- ----- ------ ------ Subtotal: Analog, Power & Discrete,
MEMS and Sensors (APMS) Product Group 2,037 2,383 2,309 -14.5% -11.8%
-------------------------------------------- ----- ----- ----- ------ ------ Microcontrollers (MCU) segment 950 1,272 1,448 -25.3% -34.4%
-------------------------------------------- ----- ----- ----- ------ ------ Digital ICs and RF Products (D&RF) segment 475 623 486 -23.8% -2.1%
-------------------------------------------- ----- ----- ----- ------ ------ Subtotal: Microcontrollers, Digital
ICs and RF products (MDRF) Product Group 1,425 1,895 1,934 -24.8% -26.3%
-------------------------------------------- ----- ----- ----- ------ ------ Others 3 4 4 - -
-------------------------------------------- ----- ----- ----- ------ ------ Total Net Revenues 3,465 4,282 4,247 -19.1% -18.4%
-------------------------------------------- ----- ----- ----- ------ ------
===
Net revenues totaled $3.47 billion, representing a year-over-year decrease of 18.4%. Year-over-year net sales to OEMs and Distribution decreased 11.5% and 30.8%, respectively. On a sequential basis, net revenues decreased 19.1%, 320 basis points lower than the mid-point of ST's guidance.
Gross profit totaled $1.44 billion, representing a year-over-year decrease of 31.6%. Gross margin of 41.7%, 60 basis points below the mid-point of ST's guidance, decreased 800 basis points year-over-year, mainly due to the combination of sales price and product mix, unused capacity charges and reduced manufacturing efficiencies.
Operating income decreased 54.1% to $551 million, compared to $1.20 billion in the year-ago quarter. ST's operating margin decreased 1,240 basis points on a year-over-year basis to 15.9% of net revenues, compared to 28.3% in the first quarter of 2023.
By reportable segment, compared with the year-ago quarter:
In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:
Analog products, MEMS and Sensors (AM&S) segment:
===
-- Revenue decreased 13.1% mainly due to a decrease in MEMS and Imaging.
-- Operating profit decreased by 44.8% to $185 million. Operating margin was
15.2% compared to 23.9%.
===
Power and Discrete products (P&D) segment:
===
-- Revenue decreased 9.8% mainly due to a decrease in Discrete.
-- Operating profit decreased by 41.6% to $138 million. Operating margin was
16.8% compared to 26.0%.
===
In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
Microcontrollers (MCU) segment:
===
-- Revenue decreased 34.4% mainly due to a decrease in GP MCU.
-- Operating profit decreased by 66.7% to $185 million. Operating margin was
19.5% compared to 38.3%.
===
Digital ICs and RF products (D&RF) segment:
===
-- Revenue decreased 2.1% due to a decrease in ADAS more than offsetting an
increase in RF Communications.
-- Operating profit decreased by 8.2% to $150 million. Operating margin was
31.8% compared to 33.9%.
===
Net income and diluted Earnings Per Share decreased to $513 million and $0.54 respectively compared to $1.04 billion and $1.10 respectively in the year-ago quarter.
Cash Flow and Balance Sheet Highlights
===
Trailing 12 Months
--------------------- ------- ------- ------- ---------------------------- (US$ m) Q1 2024 Q4 2023 Q1 2023 Q1 2024 Q1 2023 TTM Change --------------------- ------- ------- ------- ------- ------- ----------
Net cash from
operating
activities 859 1,480 1,320 5,531 5,577 -0.8% --------------------- ------- ------- ------- ------- ------- ----------
Free cash flow
(non-U.S.
GAAP)(1) (134) 652 206 1,434 1,715 -16.4% --------------------- ------- ------- ------- ------- ------- ----------
===
Net cash from operating activities was $859 million in the first quarter compared to $1.32 billion in the year-ago quarter.
Net Capex (non-U.S. GAAP)(1) was $967 million in the first quarter compared to $1.09 billion in the year-ago quarter.
Free cash flow (non-U.S. GAAP)(1) was negative at $134 million in the first quarter, compared to positive $206 million in the year-ago quarter.
Inventory at the end of the first quarter was $2.69 billion, compared to $2.70 billion in the previous quarter and $2.87 billion in the year-ago quarter. Days sales of inventory at quarter-end was 122 days compared to 104 days in the previous quarter and 122 days in the year-ago quarter.
In the first quarter, ST paid cash dividends to its stockholders totaling $48 million and executed a $87 million share buy-back as part of its current share repurchase program.
ST's net financial position (non-U.S. GAAP)(1) was $3.13 billion as of March 30, 2024, compared to $3.16 billion as of December 31, 2023 and reflected total liquidity of $6.24 billion and total financial debt of $3.11 billion. Adjusted net financial position (non-U.S. GAAP)(1) , taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2.78 billion as of March 30, 2024.
Business Outlook
MORE TO FOLLOW) Dow Jones Newswires
April 25, 2024 01:00 ET (05:00 GMT)
Press Release: STMicroelectronics Reports 2024 -2-
ST's guidance, at the mid-point, for the 2024 second quarter is:
===
-- Net revenues are expected to be $3.2 billion, a decrease of 7.6%
sequentially, plus or minus 350 basis points.
-- Gross margin of 40%, plus or minus 200 basis points.
-- This outlook is based on an assumed effective currency exchange rate of
approximately $1.08 = EUR1.00 for the 2024 second quarter and includes
the impact of existing hedging contracts.
-- The second quarter will close on June 29, 2024.
===
Conference Call and Webcast Information
ST will conduct a conference call with analysts, investors and reporters to discuss its first quarter 2024 financial results and current business outlook today at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern Time (ET). A live webcast (listen-only mode) of the conference call will be accessible at ST's website, https://investors.st.com, and will be available for replay until May 10, 2024.
Use of Supplemental Non-U.S. GAAP Financial Information
This press release contains supplemental non-U.S. GAAP financial information.
Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information from other companies. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with ST's consolidated financial statements prepared in accordance with U.S. GAAP.
See the Appendix of this press release for a reconciliation of ST's non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures.
Forward-looking Information
Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management's current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors:
===
-- changes in global trade policies, including the adoption and expansion of
tariffs and trade barriers, that could affect the macro-economic
environment and adversely impact the demand for our products;
-- uncertain macro-economic and industry trends (such as inflation and
fluctuations in supply chains), which may impact production capacity and
end-market demand for our products;
-- customer demand that differs from projections;
-- the ability to design, manufacture and sell innovative products in a
rapidly changing technological environment;
-- changes in economic, social, public health, labor, political, or
infrastructure conditions in the locations where we, our customers, or
our suppliers operate, including as a result of macroeconomic or regional
events, geopolitical and military conflicts, social unrest, labor actions,
or terrorist activities;
-- unanticipated events or circumstances, which may impact our ability to
execute our plans and/or meet the objectives of our R&D and manufacturing
programs, which benefit from public funding;
-- financial difficulties with any of our major distributors or significant
curtailment of purchases by key customers;
-- the loading, product mix, and manufacturing performance of our production
facilities and/or our required volume to fulfill capacity reserved with
suppliers or third-party manufacturing providers;
-- availability and costs of equipment, raw materials, utilities,
third-party manufacturing services and technology, or other supplies
required by our operations (including increasing costs resulting from
inflation);
-- the functionalities and performance of our IT systems, which are subject
to cybersecurity threats and which support our critical operational
activities including manufacturing, finance and sales, and any breaches
of our IT systems or those of our customers, suppliers, partners and
providers of third-party licensed technology;
-- theft, loss, or misuse of personal data about our employees, customers,
or other third parties, and breaches of data privacy legislation;
-- the impact of intellectual property ("IP") claims by our competitors or
other third parties, and our ability to obtain required licenses on
reasonable terms and conditions;
-- changes in our overall tax position as a result of changes in tax rules,
new or revised legislation, the outcome of tax audits or changes in
international tax treaties which may impact our results of operations as
well as our ability to accurately estimate tax credits, benefits,
deductions and provisions and to realize deferred tax assets;
-- variations in the foreign exchange markets and, more particularly, the
U.S. dollar exchange rate as compared to the Euro and the other major
currencies we use for our operations;
-- the outcome of ongoing litigation as well as the impact of any new
litigation to which we may become a defendant;
-- product liability or warranty claims, claims based on epidemic or
delivery failure, or other claims relating to our products, or recalls by
our customers for products containing our parts;
-- natural events such as severe weather, earthquakes, tsunamis, volcano
eruptions or other acts of nature, the effects of climate change, health
risks and epidemics or pandemics in locations where we, our customers or
our suppliers operate;
-- increased regulation and initiatives in our industry, including those
concerning climate change and sustainability matters and our goal to
become carbon neutral by 2027 on scope 1 and 2 and partially scope 3;
-- epidemics or pandemics, which may negatively impact the global economy in
a significant manner for an extended period of time, and could also
materially adversely affect our business and operating results;
-- industry changes resulting from vertical and horizontal consolidation
among our suppliers, competitors, and customers; and
-- the ability to successfully ramp up new programs that could be impacted
by factors beyond our control, including the availability of critical
third-party components and performance of subcontractors in line with our
expectations.
===
Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as "believes", "expects", "may", "are expected to", "should", "would be", "seeks" or "anticipates" or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions.
Some of these risk factors are set forth and are discussed in more detail in "Item 3. Key Information -- Risk Factors" included in our Annual Report on Form 20-F for the year ended December 31, 2023 as filed with the Securities and Exchange Commission ("SEC") on February 22, 2024. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.
Unfavorable changes in the above or other factors listed under "Item 3. Key Information -- Risk Factors" from time to time in our Securities and Exchange Commission ("SEC") filings, could have a material adverse effect on our business and/or financial condition.
About STMicroelectronics
At ST, we are over 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud-connected autonomous things. We are committed to achieving our goal to become carbon neutral on scope 1 and 2 and partially scope 3 by 2027. Further information can be found at www.st.com.
For further information, please contact:
INVESTOR RELATIONS:
Céline Berthier
Group VP, Investor Relations
Tel: +41 22 929 58 12
celine.berthier@st.com https://www.globenewswire.com/Tracker?data=qSzpO4zzh4UU6vkP2E8Pf7zBW_sDxk-DSAGedksrWbu3yyldN3nq_JibLeqOvQe_NVl3EKgEhf4EMpuruKWvU8KGZN5Nk3_Id7L7V_I9NW8=
MEDIA RELATIONS:
Alexis Breton
Corporate External Communications
Tel: + 33 6 59 16 79 08
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===
STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of U.S. dollars, except per share data
($))
Three months ended
March 30, April 1, 2024 2023 ---------------------------- --------------------------- (Unaudited) (Unaudited) ---------------------------- ---------------------------
Net sales 3,444 4,241 Other revenues 21 6 NET REVENUES 3,465 4,247 Cost of sales (2,021) (2,137) GROSS PROFIT 1,444 2,110 Selling, general and administrative (425) (395) Research and development (528) (505) Other income and expenses, net 60 (9) Total operating expenses (893) (909) OPERATING INCOME 551 1,201 Interest income, net 59 37 Other components of pension benefit costs (4) (5) INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTEREST 606 1,233 Income tax expense (92) (187) ---------------------------- --------------------------- NET INCOME 514 1,046 Net income attributable to noncontrolling interest (1) (2) ---------------------------- --------------------------- NET INCOME ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 513 1,044 ============================ ===========================
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT
COMPANY STOCKHOLDERS 0.57 1.16
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT
COMPANY STOCKHOLDERS 0.54 1.10
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING
DILUTED EPS 942.3 945.6
STMicroelectronics N.V.
CONSOLIDATED BALANCE SHEETS
December
As at March 30, 31, April 1, In millions of U.S. dollars 2024 2023 2023 (Unaudited) (Audited) (Unaudited)
ASSETS
-------------------------------------------
Current assets:
Cash and cash equivalents 3,133 3,222 3,572 Short-term deposits 1,226 1,226 106 Marketable securities 1,880 1,635 841 Trade accounts receivable, net 1,787 1,731 2,013 Inventories 2,685 2,698 2,870 Other current assets 1,183 1,295 962 Total current assets 11,894 11,807 10,364 Goodwill 298 303 300 Other intangible assets, net 366 367 403 Property, plant and equipment, net 10,866 10,554 8,847 Non-current deferred tax assets 585 592 582 Long-term investments 22 22 11 Other non-current assets 942 808 697 13,079 12,646 10,840
Total assets 24,973 24,453 21,204 ----------- --------- -----------
LIABILITIES AND EQUITY
-------------------------------------------
Current liabilities:
Short-term debt 238 217 176 Trade accounts payable 1,642 1,856 2,095 Other payables and accrued liabilities 1,547 1,525 1,544 Dividends payable to stockholders 6 54 6 Accrued income tax 133 78 193 Total current liabilities 3,566 3,730 4,014 Long-term debt 2,875 2,710 2,488 Post-employment benefit obligations 372 372 337 Long-term deferred tax liabilities 49 54 55 Other long-term liabilities 912 735 445 4,208 3,871 3,325
Total liabilities 7,774 7,601 7,339 Commitment and contingencies
Equity
Parent company stockholders' equity
Common stock (preferred stock: 540,000,000
shares authorized, not issued; common
stock: Euro 1.04 par value, 1,200,000,000
shares authorized, 911,281,920 shares
issued, 900,848,535 shares outstanding
as of March 30, 2024) 1,157 1,157 1,157
Additional Paid-in Capital 2,931 2,866 2,693 Retained earnings 12,982 12,470 9,754 Accumulated other comprehensive income 468 613 546 Treasury stock (463) (377) (352) ----------- --------- -----------
Total parent company stockholders'
equity 17,075 16,729 13,798
Noncontrolling interest 124 123 67 Total equity 17,199 16,852 13,865 Total liabilities and equity 24,973 24,453 21,204 ----------- --------- -----------
STMicroelectronics
N.V.
SELECTED CASH FLOW
DATA
------------------- ------------------------ ------------------------ ------------------------
Cash Flow Data (in
US$ millions) Q1 2024 Q4 2023 Q1 2023 ------------------- ------------------------ ------------------------ ------------------------
Net Cash from
operating
activities 859 1,480 1,320 ------------------- ------------------------ ------------------------ ------------------------
Net Cash used in
investing
activities (1,254) (1,610) (786) ------------------- ------------------------ ------------------------ ------------------------
Net Cash from (used
in) financing
activities 308 336 (221) ------------------- ------------------------ ------------------------ ------------------------
Net Cash increase
(decrease) (89) 211 314 ------------------- ------------------------ ------------------------ ------------------------
Selected Cash Flow
Data (in US$
millions) Q1 2024 Q4 2023 Q1 2023 ------------------- ------------------------ ------------------------ ------------------------
Depreciation &
amortization 430 414 368 ------------------- ------------------------ ------------------------ ------------------------
Net payment for
Capital
expenditures (994) (798) (1,090) ------------------- ------------------------ ------------------------ ------------------------
Dividends paid to
stockholders (48) (60) (54) ------------------- ------------------------ ------------------------ ------------------------
Change in
inventories, net (12) 219 (262) ------------------- ------------------------ ------------------------ ------------------------
===
Appendix
MORE TO FOLLOW) Dow Jones Newswires
April 25, 2024 01:00 ET (05:00 GMT)
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
STMICROELECTRONICS | 893438 | Xetra | 38,490 | 28.05.24 17:35:42 | +0,940 | +2,50% | 0,000 | 0,000 | 38,520 | 37,550 |
|
STMicroelectronics NV | 897710 | NYSE | 41,880 | 28.05.24 22:00:38 | -0,010 | -0,02% | 41,250 | 41,880 | 41,680 | 41,890 |
