PR No. C2848C
STMicroelectronics
Reports 2018 First Quarter Financial Results
-
Net revenues of $2.23 billion,
up 22.2% year-over-year
-
Gross and operating margins up
significantly year-over-year to 39.9% and 12.1%,
respectively
-
Net income of $239 million,
year-over-year improvement of $131 million
-
Cash dividend of $0.24 per
common share payable in equal quarterly installments proposed to
the 2018 Annual General Meeting of Shareholders
Geneva, April 25,
2018 - STMicroelectronics (NYSE: STM), a global semiconductor
leader serving customers across the spectrum of electronics
applications, reported financial results for the first quarter
ended March 31, 2018.
First quarter net revenues totaled
$2.23 billion, gross margin was 39.9%, and net income was $239
million or $0.26 diluted earnings per share.
"We started 2018
with another quarter of double-digit, year-over-year sales growth
across all product groups and regions," commented Carlo
Bozotti, STMicroelectronics President and Chief Executive
Officer.
"On a sequential
basis, first quarter results were better than the mid-point of our
sales and gross margin guidance. We delivered a better than
seasonal performance in Automotive and Industrial, thanks to our
application-focused approach on Smart Driving and Internet of
Things, despite the anticipated unfavorable seasonal dynamics for
smartphone applications.
"On a
year-over-year basis, net revenues grew 22.2%, gross margin
expanded by 220 basis points to 39.9% and operating margin
increased by 480 basis points to 12.1%. Free cash flow, during a
quarter of high capital spending to support our growth plans,
increased by 53% to $95 million from the year-ago quarter and we
exited the quarter with a solid net financial position of $522
million."
Financial Summary
(US$ Million)
U.S. GAAP (1) |
Q1 2018 |
Q4 2017 |
Q1 2017 |
Net
Revenues |
2,226 |
2,466 |
1,821 |
Gross
Margin |
39.9% |
40.7% |
37.7% |
Operating
Income |
269 |
411 |
132 |
Net
Income attributable to parent company |
239 |
308 |
108 |
Net cash
from operating activities |
455 |
587 |
289 |
Non-U.S. GAAP (2) |
Q1 2018 |
Q4 2017 |
Q1 2017 |
Free cash
flow |
95 |
145 |
62 |
Net
financial position |
522 |
489 |
518 |
(1)
Certain amounts in the prior periods have been
adjusted to reflect the January 1, 2018 adoption of ASU 2017-07
related to the reclassification of certain pension
costs.
(2)
Non-U.S. GAAP measure. See Appendix for
reconciliation to U.S. GAAP and additional information explaining
why the Company believes these measures are important.
Financial Summary by Product
Group (US$ Million)
Net Revenues By Product Group |
Q1 2018 |
Q4 2017 |
Q1 2017 |
Automotive and Discrete Group (ADG) |
817 |
821 |
708 |
Analog,
MEMS and Sensors Group (AMS) (a) |
655 |
902 |
518 |
Microcontrollers and Digital ICs Group (MDG) |
750 |
740 |
593 |
Others
(b) |
4 |
3 |
2 |
Total |
2,226 |
2,466 |
1,821 |
(a)
Effective January 1, 2018, the Subsystems business
unit was transferred from Others to Analog, MEMS and Sensors Group
(AMS). Prior periods have been restated accordingly.
(b)
Net revenues of Others includes revenues from
sales of assembly services and other revenues.
First Quarter
Review
First quarter net revenues
decreased 9.8% sequentially, 20 basis points better than the
midpoint of the Company's guidance. On a sequential basis,
Microcontrollers and Digital ICs Group (MDG) revenues increased
1.3% and Automotive and Discrete Group (ADG) revenues decreased
0.5% reflecting better than seasonal performance for Smart Driving
and Internet of Things applications. Analog, MEMS and Sensors Group
(AMS) revenues decreased by 27.4% principally reflecting
unfavorable seasonal dynamics for smartphone applications
negatively impacting the Company's Imaging business.
On a year-over-year basis, first
quarter net revenues increased 22.2% with all product groups
delivering double-digits revenue growth. Specifically,
Microcontrollers and Digital ICs Group (MDG) revenues were up 26.6%
largely driven by a strong expansion of microcontroller sales;
Analog, MEMS and Sensors Group (AMS) revenues increased 26.5% on
sharply higher Imaging sales, as well as growth in Analog and MEMS;
and Automotive and Discrete Group (ADG) revenues were higher by
15.4% on double-digit growth for both Automotive and Power Discrete
products.
By region of shipment, EMEA and
the Americas grew revenues sequentially 8.4% and 1.8%,
respectively, while Asia Pacific decreased 18.2%. On a
year-over-year basis, revenues in Asia Pacific, EMEA and the
Americas increased 24.5%, 22.4% and 12.7%, respectively.
First quarter gross profit was
$888 million and gross margin was 39.9%, 40 basis points above the
midpoint of the Company's guidance. On a sequential basis, gross
margin decreased 80 basis points mainly due to normal price
pressure and negative currency effects, net of hedging partially
offset by improved product mix and increased manufacturing
efficiency. Gross margin increased 220 basis points year-over-year
largely driven by improved manufacturing efficiency and better
product mix partially offset mainly by normal price pressure as
well as negative currency effects, net of hedging.
.
Combined R&D and SG&A expenses were $614 million compared
to $590 million in the prior quarter. On a year-over-year basis,
combined R&D and SG&A expenses increased $48 million mainly
due to negative currency effects, net of hedging, and inflationary
dynamics.
First quarter other income &
expenses, net, registered income of $16 million compared to $18
million and $17 million in the prior and year-ago quarter,
respectively.
Impairment and restructuring
charges in the first quarter were $21 million, compared to $20
million and $5 million in the prior and year-ago quarter,
respectively, related to the substantially completed set-top box
restructuring plan announced in January 2016.
Operating income in the first
quarter was $269 million, equivalent to 12.1% of net revenues,
compared to $411 million, equivalent to 16.7% of net revenues, in
the 2017 fourth quarter and was up sharply in comparison to the
2017 first quarter operating income of $132 million, equivalent to
7.3% of net revenues. On a year-over-year basis, all product groups
improved operating results due to higher revenues and improved
gross margin: MDG operating margin increased to 19.5% from 10.3%;
ADG operating margin doubled to 11.0% from 5.5%; and AMS operating
margin expanded to 9.8% from 7.6%.
First quarter net income was $239
million, equivalent to $0.26 diluted earnings per share, compared
to the 2017 fourth quarter net income of $308 million, equivalent
to $0.34 per share, and increased significantly compared to 2017
first quarter net income of $108 million, equivalent to $0.12
diluted earnings per share.
Cash Flow and
Balance Sheet Highlights
Capital expenditure payments, net
of proceeds from sales, were $351 million during the first quarter
of 2018 compared to $407 million in the prior quarter and $219
million in the year-ago quarter.
Free cash flow(1) was
$95 million, up significantly from $62 million in the year-ago
quarter.
Inventory was $1.43 billion at
quarter end. Inventory in the first quarter of 2018 was at 3.7
turns or 97 days.
In the first quarter, the Company
paid cash dividends totaling $54 million.
ST's net financial
position(1) was $522
million at March 31, 2018 compared to $489 million at December 31,
2017. At March 31, 2018, ST's total financial resources were $2.23
billion; total financial debt was $1.71 billion; and total equity,
including non-controlling interest, was $5.77 billion.
(1) Non-U.S.
GAAP measure. See Appendix for additional information and
reconciliation to U.S. GAAP.
Second Quarter
2018 Business Outlook
The Company
expects second quarter 2018 revenues to increase about 1.5% on a
sequential basis, plus or minus 3.5 percentage points. Gross margin
in the second quarter is expected to be about 40.0% plus or minus
2.0 percentage points.
Mr. Bozotti commented, "Despite the weak demand we are experiencing for
smartphones in the first half of 2018, we anticipate second quarter
and first half revenues to grow year-over-year about 17.5% and
19.8%, respectively, at the mid-point of our guidance range. This
will be driven by the continued better than seasonal sales trends
in Automotive, Industrial and Internet of Things
applications.
"For the second
half of the year, we see healthy demand, with a strong backlog
across all our product groups, end markets, including smartphones,
and regions."
This outlook is
based on an assumed effective currency exchange rate of
approximately $1.21 = €1.00 for the 2018 second quarter and
includes the impact of existing hedging contracts. The second
quarter will close on June 30, 2018.
Recent Corporate
Developments
- On January 25, STMicroelectronics announced Carlo
Bozotti's Succession Plan; Deputy CEO Jean-Marc Chery will be
proposed as the Sole Member of the Managing Board at the 2018
Annual General Meeting of Shareholders and to become the next
President & CEO; A newly-formed Executive Committee will become
effective upon shareholder approval of Mr. Chery's appointment. In
addition, Carlo Ferro, Chief Financial Officer and President
Finance, Legal, Infrastructure and Services, informed the Company
about his intention to step down from his position at the same time
as ST President and CEO Carlo Bozotti's retirement, which will be
effective at the conclusion of the Annual General Shareholders'
meeting, to pursue other personal opportunities. Mr. Ferro will
remain President of ST's Italian affiliate until the end of
2018.
- On February 5, STMicroelectronics was recognized
as among the world's most innovative companies in being named a
"2018 Thomson Reuters Top 100 Global Technology Leader
- On March 1, STMicroelectronics announced that it
had filed its Annual Report on Form 20-F for the year ended
December 31, 2017 with the United States Securities and Exchange
Commission (SEC).
- On March 27, STMicroelectronics announced the
main resolutions to be submitted for adoption at the Annual General
Meeting of Shareholders (AGM), which will be held in Amsterdam, the
Netherlands, on May 31, 2018. The main resolutions, proposed by the
Supervisory Board, include:
- The adoption of the Company's Statutory Annual
Accounts for the year ended December 31, 2017, prepared in
accordance with International Financial Reporting Standards (IFRS).
The 2017 Statutory Annual Accounts were filed with the Netherlands
Authority for the Financial Markets (AFM) on March 27, 2018 and are
posted on the Company's website (www.st.com) and the AFM's website
(www.afm.nl);
- The distribution of a cash dividend of US$0.24
per outstanding share of the Company's common stock, to be
distributed in quarterly installments of US$0.06 in each of the
second, third and fourth quarters of 2018 and first quarter of 2019
to shareholders of record in the month of each quarterly
payment;
- The appointment of Mr. Jean-Marc Chery, as sole
member of the Managing Board, for a three-year term expiring at the
2021 AGM;
- The reappointment of Mr. Nicolas Dufourcq, as
member of the Supervisory Board, for a three-year term expiring at
the 2021 AGM; and
- The reappointment of Ms. Martine Verluyten, as
member of the Supervisory Board, for a one-year term expiring at
the 2019 AGM.
The record date for all
shareholders to participate at the Annual General Meeting of
Shareholders will be May 3, 2018. The complete agenda and all
relevant detailed information concerning the 2018 AGM, as well as
all related AGM materials, are available on the Company's website
(www.st.com).
Q1 2018 - Product
and Technology Highlights
Automotive and Discrete Group
(ADG)
- Won a design with SPC58 32-bit automotive MCU for
chassis stability control unit from a major Japanese tier1 for a
leading Japanese car maker;
- Earned multiple design wins for Accordo processor
for mid-level car radio systems supporting Car Play(TM) and Android
Auto(TM) features from several Asian OEMs;
- Captured an award for U-Chip power supply and
drivers for engine-management and battery-management systems from a
major Chinese tier1;
- Received awards for multiple class D and class AB
audio power amplifiers for infotainment applications with an
important European tier1 for a North America car maker and for
telematics for a European car maker;
- Chosen to supply class D audio amplifiers for an
e-call module by a major electric-vehicle maker;
- Landed awards for VIPower family devices for DC
motor control in a door-zone application by a worldwide
leader;
- Captured a design win with the latest VIPower
family in a high-end body-control module for a European premium car
maker;
- Received multiple design wins for an ASSP from
German tier1s for electric power trunk applications;
- Won sockets for SLLIMM-nano2 intelligent power
modules based on IGBT trench technology for washing machine and
dishwasher platforms from a market leader;
- Landed a win for MDmesh power MOSFETS in an
implanted cardiovascular defibrillator socket from a top American
medical player and in a battery-charger socket from a leading
smartphone manufacturer;
- Maintained strong momentum in SiC diodes with
multiple design-wins for electric-vehicle on-board chargers and
high-efficiency power-conversion systems in servers, solar energy,
and Hi-Fi audio systems from leading tier1s;
- Earned a major design win for integrated passive
device (IPD) filters in 5G base stations.
Analog, MEMS and
Sensors Group (AMS)
-
Landed a variety of awards, design wins, and new
programs in industrial markets for Advanced Analog, Power
Management, Metering, IPS, and PLC products;
-
Announced Collaboration with Velankani on Smart
Meters for 'Make in India' Program;
-
Collaborated with Artesyn Embedded Technologies,
Bel Power Solutions, and Flex to launch the Power Stamp Alliance to
enable multi-vendor supply-chain ecosystem for open compute and
data-center power management;
-
Earned design win with Bluetooth products for
shared-bike Smart Lock and electronic tolling collector
applications;
-
Landed an important design win for a linear
regulator from a top mobile phone maker;
-
Received several design wins for consumer mobile
devices for Analog and Smart Power products;
-
Won designs with Advanced Analog products from
Chinese phone makers;
-
Ramped production of a full collection of
sensors, including 6-axis ultra-low-power MEMS inertial measurement
unit, barometric sensor, and optical-image-stabilization gyroscope,
for Samsung Galaxy S9 and S9+;
-
Enabled six of the top-ranked smartphones for
image quality, according to DXOMark benchmark scores, with
optical-image stabilization gyros;
-
Gained sockets for waterproof pressure sensors
for wearable with a Chinese smartwatch manufacturer;
-
Captured sockets for ultra-low power
accelerometer and pressure sensor in top-tier wearable
supplier;
-
Earned design wins for FlightSense(TM)
Time-of-Flight proximity and ranging sensors with several leading
Asian smartphone manufacturers and in non-wireless applications,
such as robots.
Microcontrollers
and Digital ICs Group (MDG)
-
Announced a cooperation with Sigfox to support
the growing demand of connected devices to low-power wide-area
network (LPWAN);
-
Began sampling the STM32WB wireless
System-on-Chip (SoC) combining a full-featured Arm®
Cortex®-M4-based application microcontroller and an Arm Cortex-M0+
core controlling real-time operation of Bluetooth low energy and
IEEE 802.15.4 radios;
-
Captured wins for STM32 series devices from
major OEMs in applications including a smartphone fast-charging
application, a smartphone wireless charger, a digitally controlled
Smart Home Air Vent, a new generation of smart plugs, and in
insulin pumps;
-
Expanded further the STM32 ecosystem with new
Discovery Packs for fast connection of IoT devices to Cloud
services over 2G/3G and LTE Cat M1/NB1 networks;
-
Gained wins for latest NFC controllers in
various smartphones from key OEMs;
-
Won sockets for TPM solution from leading PC
manufacturers;
-
Captured design wins for ST25R NFC Reader and
associated NFC Tags for authentication of consumable goods from a
major medical equipment company;
-
Ramped production of SIM card and EEPROM for the
Samsung Galaxy S9 and S9+;
-
Began production of ST25DV dynamic NFC/RFID tag
for a lighting application at a major OEM and won a socket for
ST25DV dynamic NFC/RFID tag in a glucose-meter application from
Taiwanese medical-equipment manufacturer;
-
Landed wins for several high density EEPROMs
from Indian e-Meter manufacturers;
-
Earned a design win for a digital ASIC in 7nm
FinFET technology from a new customer;
-
Won two ASIC designs in 55nm BiCMOS technology
at an optical market leader.
Use of Supplemental Non-U.S. GAAP
Financial Information
This press release contains
supplemental non-U.S. GAAP financial information, including
operating income (loss) before impairment and restructuring
charges, adjusted net earnings, adjusted diluted earnings per
share, free cash flow and net financial position.
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.
See the Appendix of this press
release for a reconciliation of the Company's non-U.S. GAAP
financial measures to their corresponding U.S. GAAP financial
measures. To compensate for these limitations, the supplemental
non-U.S. GAAP financial information should not be read in
isolation, but only in conjunction with the Company's consolidated
financial statements prepared in accordance with U.S. GAAP.
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:
-
Uncertain macro-economic and
industry trends, which may impact 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;
-
Unanticipated events or
circumstances, which may impact our ability to execute the planned
reductions in our net operating expenses and / or meet the
objectives of our R&D Programs, which benefit from public
funding;
-
Changes in economic, social,
labor, political, or infrastructure conditions in the locations
where we, our customers, or our suppliers operate, including as a
result of macro-economic or regional events, military conflicts,
social unrest, labor actions, or terrorist activities;
-
The Brexit vote and the
perceptions as to the impact of the withdrawal of the U.K. may
adversely affect business activity, political stability and
economic conditions in the U.K., the Eurozone, the EU and
elsewhere. While we do not have material operations in the U.K. and
have not experienced any material impact from Brexit on our
underlying business to date, we cannot predict its future
implications;
-
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;
-
The functionalities and
performance of our IT systems, which support our critical
operational activities including manufacturing, finance and sales,
and any breaches of our IT systems or those of our customers or
suppliers;
-
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 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;
-
The ability to successfully
restructure underperforming business lines and realize cost savings
that differ in amount or timing from our estimates;
-
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;
-
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, health risks and epidemics in locations where we, our
customers or our suppliers operate;
-
Availability and costs of raw
materials, utilities, third-party manufacturing services and
technology, or other supplies required by our operations;
-
Industry changes resulting from
vertical and horizontal consolidation among our suppliers,
competitors, and customers;
-
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; and
-
Theft, loss, or misuse of
personal data about our employees, customers, or other third
parties, and breaches of global privacy legislation, including the
EU's General Data Protection Regulation ("GDPR").
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, 2017, as filed
with the SEC on March 1, 2018. 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 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.
STMicroelectronics Conference Call and Webcast
Information
The management of
STMicroelectronics will conduct a live webcast of its conference
call on April 25, 2018 at 9:30 a.m. Central European Time (CET) /
3:30 a.m. U.S. Eastern Time (ET) / 12:30 a.m. U.S. Pacific Time
(PT), to discuss performance for the first quarter of 2018.
The live webcast of the conference
call will be available by accessing http://investors.st.com. Those
accessing the webcast should go to the Web site at least 15 minutes
prior to the call, in order to register, download and install any
necessary audio software. The webcast will be available until May
11, 2018.
About
STMicroelectronics
ST is a global semiconductor leader delivering intelligent and
energy-efficient products and solutions that power the electronics
at the heart of everyday life. ST's products are found everywhere
today, and together with our customers, we are enabling smarter
driving and smarter factories, cities and homes, along with the
next generation of mobile and Internet of Things devices.
By getting more from technology to
get more from life, ST stands for life.augmented.
In 2017, the Company's net
revenues were $8.35 billion, serving more than 100,000 customers
worldwide.
Further information can be found
at www.st.com.
For further information, please
contact:
INVESTOR RELATIONS:
Tait
Sorensen
Group VP, Investor Relations
STMicroelectronics
Tel: +1 602 485 2064
tait.sorensen@st.com
MEDIA RELATIONS:
Alexis
Breton
Director, PR & Media Operations
STMicroelectronics
Tel: + 33 6 59 16 79 08
alexis.breton@st.com
STMicroelectronics N.V. |
|
|
Consolidated Statements of Income |
|
|
(in millions of U.S. dollars, except per
share data ($)) |
|
|
|
|
|
|
Three Months Ended |
|
(Unaudited) |
(Unaudited) |
|
March 31, |
April 01, |
|
2018 |
2017 |
|
|
|
Net sales |
2,214 |
1,818 |
Other revenues |
12 |
3 |
NET REVENUES |
2,226 |
1,821 |
Cost of sales |
(1,338) |
(1,135) |
GROSS PROFIT |
888 |
686 |
Selling, general and administrative |
(265) |
(234) |
Research and development |
(349) |
(332) |
Other income and expenses, net |
16 |
17 |
Impairment, restructuring charges and other related closure
costs |
(21) |
(5) |
Total Operating Expenses |
(619) |
(554) |
OPERATING INCOME |
269 |
132 |
Interest expense, net |
(3) |
(4) |
Other components of pension benefit costs |
(3) |
(3) |
INCOME BEFORE INCOME TAXES |
263 |
125 |
AND NONCONTROLLING INTEREST |
|
|
Income tax expense |
(22) |
(16) |
NET INCOME |
241 |
109 |
Net income attributable to noncontrolling interest |
(2) |
(1) |
NET INCOME ATTRIBUTABLE TO PARENT
COMPANY |
239 |
108 |
|
|
|
EARNINGS PER SHARE (BASIC)
ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS |
0.27 |
0.12 |
EARNINGS PER SHARE (DILUTED)
ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS |
0.26 |
0.12 |
|
|
|
NUMBER OF WEIGHTED AVERAGE |
|
|
SHARES USED IN CALCULATING |
|
|
DILUTED EARNINGS PER SHARE |
914.7 |
901.9 |
|
|
|
|
|
|
|
STMicroelectronics N.V. |
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
|
|
As at |
March 31, |
December 31, |
April 01, |
In millions of U.S. dollars |
2018 |
2017 |
2017 |
|
(Unaudited) |
(Audited) |
(Unaudited) |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
1,791 |
1,759 |
1,641 |
Short-term
deposits |
14 |
- |
- |
Marketable securities |
429 |
431 |
335 |
Trade accounts receivable, net |
1,042 |
1,149 |
946 |
Inventories |
1,435 |
1,335 |
1,201 |
Other current assets |
449 |
425 |
351 |
Total current assets |
5,160 |
5,099 |
4,474 |
Goodwill |
125 |
123 |
117 |
Other intangible assets, net |
205 |
209 |
188 |
Property, plant and equipment, net |
3,371 |
3,094 |
2,489 |
Non-current deferred tax assets |
632 |
624 |
534 |
Long-term investments |
58 |
57 |
57 |
Other non-current assets |
517 |
475 |
467 |
|
4,908 |
4,582 |
3,852 |
Total assets |
10,068 |
9,681 |
8,326 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Short-term debt |
119 |
118 |
117 |
Trade accounts payable |
979 |
893 |
757 |
Other payables and accrued liabilities |
940 |
897 |
777 |
Dividends payable to stockholders |
6 |
60 |
6 |
Accrued income tax |
41 |
52 |
47 |
Total current liabilities |
2,085 |
2,020 |
1,704 |
Long-term debt |
1,593 |
1,583 |
1,341 |
Post-employment benefit obligations |
393 |
385 |
354 |
Long-term deferred tax liabilities |
12 |
11 |
5 |
Other long-term liabilities |
216 |
215 |
150 |
|
2,214 |
2,194 |
1,850 |
Total liabilities |
4,299 |
4,214 |
3,554 |
Commitment and contingencies |
|
|
|
Equity |
|
|
|
Parent company stockholders' equity |
|
|
|
Common stock (preferred stock: 540,000,000 shares authorized,
not issued; common stock: Euro 1.04 nominal value, 1,200,000,000
shares authorized, 911,134,420 shares issued, 896,659,631 shares
outstanding) |
1,157 |
1,157 |
1,157 |
Capital surplus |
2,743 |
2,718 |
2,828 |
Retained earnings |
1,212 |
973 |
538 |
Accumulated other comprehensive income |
724 |
688 |
428 |
Treasury stock |
(132) |
(132) |
(241) |
Total parent company stockholders' equity |
5,704 |
5,404 |
4,710 |
Noncontrolling interest |
65 |
63 |
62 |
Total equity |
5,769 |
5,467 |
4,772 |
Total liabilities and equity |
10,068 |
9,681 |
8,326 |
STMicroelectronics N.V. |
|
|
|
|
|
|
|
SELECTED CASH FLOW DATA |
|
|
|
|
|
|
|
Cash Flow Data (in US$
millions) |
Q1 2018 |
Q4 2017 |
Q1 2017 |
|
|
|
|
Net Cash from operating activities |
455 |
587 |
289 |
Net Cash used in investing activities |
(374) |
(442) |
(227) |
Net Cash used in financing activities |
(54) |
(576) |
(53) |
Net Cash increase (decrease) |
32 |
(429) |
12 |
|
|
|
|
Selected Cash Flow Data (in US$
millions) |
Q1 2018 |
Q4 2017 |
Q1 2017 |
|
|
|
|
Depreciation & amortization |
185 |
179 |
154 |
Net payment for Capital expenditures |
(351) |
(407) |
(219) |
Dividends paid to stockholders |
(54) |
(54) |
(53) |
Change in inventories, net |
(84) |
(5) |
(22) |
Appendix
STMicroelectronics
Supplemental Financial Information
ST aligns its product families
into three product groups to better leverage the product synergies
around its strategic focus on Smart Driving and Internet of Things
applications: Automotive and Discrete Group (ADG); Analog, MEMS and
Sensors Group (AMS); and Microcontrollers and Digital ICs Group
(MDG).
Product
Group Data (a)
(US$ Million) |
Q1 2018 |
Q4 2017 |
Q3 2017 |
Q2 2017 |
Q1 2017 |
Automotive and Discrete Group (ADG) |
|
|
|
|
|
-
Net Revenues |
817 |
821 |
775 |
755 |
708 |
-
Operating Income (Loss) |
90 |
102 |
85 |
65 |
39 |
Analog, MEMS & Sensors (AMS) (b) |
|
|
|
|
|
-
Net Revenues |
655 |
902 |
657 |
553 |
518 |
-
Operating Income (Loss) |
64 |
187 |
86 |
52 |
39 |
Microcontrollers and Digital ICs Group (MDG) |
|
|
|
|
|
-
Net Revenues |
750 |
740 |
701 |
612 |
593 |
-
Operating Income (Loss) |
146 |
146 |
126 |
72 |
61 |
Others (c) |
|
|
|
|
|
- Net Revenues |
4 |
3 |
3 |
3 |
2 |
- Operating Income (Loss) |
(31) |
(24) |
(16) |
(8) |
(7) |
Total |
|
|
|
|
|
- Net Revenues |
2,226 |
2,466 |
2,136 |
1,923 |
1,821 |
- Operating Income (Loss) |
269 |
411 |
281 |
181 |
132 |
(a)
Certain amounts in the prior periods have been
adjusted to reflect the January 1, 2018 adoption of ASU 2017-07
related to the reclassification of certain pension
costs.
(b)
Effective January 1, 2018, the Subsystems business
unit was transferred from Others to Analog, MEMS and Sensors (AMS).
Prior periods have been restated accordingly.
(c)
Net revenues of "Others" includes revenues from
sales of assembly services and other revenue. Operating income (loss) of Others includes items such as
unused capacity charges, impairment, restructuring charges and
other related closure costs, phase out and start-up costs, and
other unallocated expenses such as: strategic or special research
and development programs, certain corporate-level operating
expenses, patent claims and litigations, and other costs that are
not allocated to product groups, as well as operating earnings of
other products. Others includes:
(US$
Million) |
Q1 2018 |
Q4 2017 |
Q3 2017 |
Q2 2017 |
Q1 2017 |
Unused Capacity Charges |
1 |
1 |
1 |
1 |
1 |
Impairment & Restructuring
Charges |
21 |
20 |
14 |
6 |
5 |
|
Q1 2018 |
Q4 2017 |
Q1 2017 |
€/$ Effective Rate |
1.18 |
1.15 |
1.08 |
Net
Revenues By Market Channel(%) |
Q1 2018 |
Q4 2017 |
Q1 2017 |
Total
OEM |
63% |
68% |
66% |
Distribution |
37% |
32% |
34% |
(Appendix -
continued)
STMicroelectronics
Supplemental Non-U.S. GAAP Financial
Information
U. S. GAAP - Non-U.S. GAAP
Reconciliation
In US$ Million, Except Per Share Data
($)
The supplemental non-U.S. GAAP information presented in this press
release is unaudited and subject to inherent limitations. Such
non-U.S. GAAP information is not based on any comprehensive set of
accounting rules or principles and should not be considered as a
substitute for U.S. GAAP measurements. Also, our supplemental
non-U.S. GAAP financial information may not be comparable to
similarly titled non-U.S. GAAP measures used by other companies.
Further, specific limitations for individual non-U.S. GAAP
measures, and the reasons for presenting non-U.S. GAAP financial
information, are set forth in the paragraphs below. To compensate
for these limitations, the supplemental non-U.S. GAAP financial
information should not be read in isolation, but only in
conjunction with our consolidated financial statements prepared in
accordance with U.S. GAAP.
Operating income (loss) before
impairment and restructuring charges and one-time items is used by
management to help enhance an understanding of ongoing operations
and to communicate the impact of the excluded items, such as
impairment, restructuring charges and other related closure costs.
Adjusted net earnings and adjusted diluted earnings per share (EPS)
are used by management to help enhance an understanding of ongoing
operations and to communicate the impact of the excluded items like
impairment, restructuring charges and other related closure costs
attributable to ST and other one-time items, net of the relevant
tax impact.
The Company believes that these
non-GAAP financial measures provide useful information for
investors and management because they measure the Company's
capacity to generate profits from its business operations,
excluding the effect of acquisitions and expenses related to the
rationalizing of its activities and sites that it does not consider
to be part of its on-going operating results, thereby offering,
when read in conjunction with the Company's GAAP financials,
(i) the ability to make more meaningful period-to-period
comparisons of the Company's on-going operating results,
(ii) the ability to better identify trends in the Company's
business and perform related trend analysis, and (iii) an
easier way to compare the Company's results of operations against
investor and analyst financial models and valuations, which usually
exclude these items.
Q1
2018 |
Gross Profit |
Operating Income |
Net Earnings |
Corresponding
EPS |
U.S. GAAP |
888 |
269 |
239 |
0.26 |
Impairment & Restructuring |
|
21 |
21 |
|
Estimated
Income Tax Effect |
|
|
(3) |
Non-U.S GAAP |
888 |
290 |
257 |
0.28 |
Q4
2017 |
Gross Profit |
Operating Income |
Net Earnings |
Corresponding
EPS |
U.S. GAAP |
1,003 |
411 |
308 |
0.34 |
Impairment & Restructuring |
|
20 |
20 |
|
Estimated
Income Tax Effect |
|
|
(1) |
Non-U.S GAAP |
1,003 |
431 |
327 |
0.36 |
Q1
2017 |
Gross Profit |
Operating Income |
Net Earnings |
Corresponding
EPS |
U.S. GAAP |
686 |
132 |
108 |
0.12 |
Impairment & Restructuring |
|
5 |
5 |
|
Estimated
Income Tax Effect |
|
|
(1) |
Non-U.S GAAP |
686 |
137 |
112 |
0.12 |
(Appendix -
continued)
Net Financial
Position (non-U.S. GAAP measure) represents the difference
between our total financial resources and our total financial debt.
Our total financial resources include cash and cash equivalents,
marketable securities and short-term deposits, and our total
financial debt includes short-term debt, including bank overdrafts,
and long-term debt, as represented in our Consolidated Balance
Sheets. Net Financial Position is not a U.S. GAAP measure but we
believe it provides useful information for investors and management
because it gives evidence of our global position either in terms of
net indebtedness or net cash by measuring our capital resources
based on cash and cash equivalents and marketable securities and
the total level of our financial indebtedness. In addition, our
definition of Net Financial Position may differ from definitions
used by other companies and therefore comparability may be
limited.
Net Financial Position (US$ Million) |
March 31, 2018 |
December 31, 2017 |
April 1, 2017 |
Cash and
cash equivalents |
1,791 |
1,759 |
1,641 |
Short
term deposits |
14 |
- |
- |
Marketable securities |
429 |
431 |
335 |
Total financial resources |
2,234 |
2,190 |
1,976 |
Short-term debt |
(119) |
(118) |
(117) |
Long-term
debt |
(1,593) |
(1,583) |
(1,341) |
Total financial debt |
(1,712) |
(1,701) |
(1,458) |
Net financial position - Non-U.S. GAAP |
522 |
489 |
518 |
Free Cash
Flow (non-U.S.
GAAP measure) is defined as (i) net cash from
operating activities plus (ii) net cash used in investing
activities, excluding payment for purchases (and proceeds from the
sale) of marketable securities, and net cash variation for joint
ventures deconsolidation, which are considered as temporary
financial investments. The result of this definition is ultimately
net cash from operating activities plus payment for purchase and
proceeds from sale of tangible, intangible and financial assets,
proceeds received in the sale of businesses and cash paid for
business acquisitions. We believe Free Cash Flow, a non-U.S. GAAP
measure, provides useful information for investors and management
because it measures our capacity to generate cash from our
operating and investing activities to sustain our operations. Free
Cash Flow is not a U.S. GAAP measure and does not represent total
cash flow since it does not include the cash flows generated by or
used in financing activities. Free Cash Flow reconciles with the
total cash flow and the net cash increase (decrease) by including
the payment for purchases (and proceeds from the sale) of
marketable securities and net cash variation from joint ventures
deconsolidation, the net cash from (used in) financing activities
and the effect of changes in exchange rates. In addition, our
definition of Free Cash Flow may differ from definitions used by
other companies.
Free cash flow (US$ Million) |
Q1 2018 |
Q4 2017 |
Q1 2017 |
Net cash
from operating activities |
455 |
587 |
289 |
Net cash
used in investing activities |
(374) |
(442) |
(227) |
Payment
for purchase and proceeds from sale of marketable securities,
investment in short-term deposits, restricted cash |
14 |
- |
- |
Free cash flow |
95 |
145 |
62 |
ST Q1 2018 results
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: STMicroelectronics via Globenewswire
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