STMicroelectronics Reports 2021 Third
Quarter Financial Results
- Q3 net revenues
$3.20 billion; gross
margin
41.6%;
operating margin
18.9%;
net income $474
million
- YTD net revenues
$9.20 billion; gross
margin 40.4%; operating
margin 16.7%;
net income $1.25
billion
- Business outlook at
the mid-point:
Q4 net
revenues of
$3.40 billion and gross margin
of 43.0%
Geneva,
October
28,
2021 - STMicroelectronics (NYSE:
STM), a global semiconductor leader serving customers
across the spectrum of electronics applications, reported U.S. GAAP
financial results for the third quarter ended October 2, 2021. This
press release also contains non-U.S. GAAP measures (see Appendix
for additional information).
ST reported third quarter net revenues of $3.20
billion, gross margin of 41.6%, operating margin of 18.9%, and net
income of $474 million or $0.51 diluted earnings per share.
Jean-Marc Chery, STMicroelectronics President
& CEO, commented:
- “Q3 net revenues came in
substantially at the
mid-point of our business outlook
range, up 6.9% sequentially
and up 19.9% on a year-over-year basis.
The revenue performance
was driven by strong
global demand and
by our engaged customer programs in
Personal Electronics. This
was partially offset by lower
than expected revenues in Automotive, caused
by more severe than anticipated
reduced operations at our Malaysian manufacturing
facility due to the
pandemic.
- “Q3 gross
margin of 41.6% came in 60 basis
points higher than the mid-point.
On a year-over-year basis,
Q3 operating margin of
18.9% improved from 12.3%, and
net income nearly doubled to $474
million.
- “First
nine months net revenues
increased
31.8%
year-over-year, driven by growth in all
product groups, except the RF
Communications sub-group.
Operating margin
was
16.7% and net income
$1.25 billion.
- “ST’s fourth
quarter outlook, at the mid-point, is for net revenues of
$3.40 billion,
increasing sequentially
by
6.3%;
gross margin is expected to be about
43.0%.
- “For the full year
2021, we now expect net
revenues at the mid-point to be
about $12.6
billion, translating into
23.3%
year-over-year
growth. The revenue
growth planned for this year reflects continuing
strong dynamics in all the end markets we address and our
engaged customer programs.”
Quarterly Financial Summary (U.S. GAAP)
(US$ m, except per share data) |
Q3
2021 |
Q2
2021 |
Q3
2020 |
Q/Q |
Y/Y |
Net Revenues |
$3,197 |
$2,992 |
$2,666 |
6.9% |
19.9% |
Gross Profit |
$1,330 |
$1,212 |
$959 |
9.8% |
38.7% |
Gross Margin |
41.6% |
40.5% |
36.0% |
110 bps |
560 bps |
Operating Income |
$605 |
$489 |
$329 |
23.9% |
84.0% |
Operating Margin |
18.9% |
16.3% |
12.3% |
260 bps |
660 bps |
Net Income |
$474 |
$412 |
$242 |
15.1% |
95.6% |
Diluted Earnings Per Share |
$0.51 |
$0.44 |
$0.26 |
15.9% |
96.2% |
Third Quarter
2021 Summary Review
Net Revenues By Product Group (US$ m) |
Q3
2021 |
Q2
2021 |
Q3
2020 |
Q/Q |
Y/Y |
Automotive and Discrete Group (ADG) |
1,005 |
1,077 |
851 |
-6.7% |
18.1% |
Analog, MEMS and Sensors Group (AMS) |
1,268 |
1,013 |
997 |
25.2% |
27.1% |
Microcontrollers and Digital ICs Group (MDG) |
920 |
897 |
815 |
2.6% |
12.9% |
Others |
4 |
5 |
3 |
- |
- |
Total Net Revenues |
3,197 |
2,992 |
2,666 |
6.9% |
19.9% |
Net revenues totaled $3.20
billion, a year-over-year increase of 19.9%. On a year-over-year
basis, the Company recorded higher net sales in all product groups
except the RF Communications sub-group. Year-over-year net sales to
OEMs and Distribution increased 9.9% and 48.6%, respectively. On a
sequential basis, net revenues increased 6.9%, substantially in
line with the mid-point of the Company’s guidance. AMS and MDG
reported increases in net revenues on a sequential basis while ADG
decreased, caused by more severe than anticipated reduced
operations at our Malaysian manufacturing facility due to the
pandemic.
Gross profit totaled $1.33
billion, a year-over-year increase of 38.7%. Gross
margin of 41.6% increased 560 basis points year-over-year,
mainly driven by improved product mix, manufacturing efficiencies,
favorable pricing and lower unloading charges, partially offset by
negative currency effects, net of hedging. Third quarter gross
margin was 60 basis points above the mid-point of the Company’s
guidance mainly due to product mix.
Operating income increased
84.0% to $605 million, compared to $329 million in the year-ago
quarter. The Company’s operating margin increased
660 basis points on a year-over-year basis to 18.9% of net
revenues, compared to 12.3% in the 2020 third quarter.
By product group, compared with
the year-ago quarter:
Automotive and Discrete Group (ADG):
- Revenue increased in both Automotive and in Power
Discrete.
- Operating profit increased by 120.6% to $108 million. Operating
margin was 10.8% compared to 5.8%.
Analog, MEMS and Sensors Group (AMS):
- Revenue increased in Analog, MEMS and Imaging.
- Operating profit increased by 73.8% to $304 million. Operating
margin was 24.0% compared to 17.5%.
Microcontrollers and Digital ICs Group
(MDG):
- Revenue increased in Microcontrollers and decreased in RF
Communications.
- Operating profit increased by 54.9% to $220 million. Operating
margin was 23.9% compared to 17.4%.
Net income and diluted
earnings per share increased to $474 million and $0.51,
respectively, compared to $242 million and $0.26, respectively, in
the year-ago quarter.
Cash Flow and Balance Sheet Highlights
|
|
|
|
Trailing 12 Months |
(US$ m) |
Q3
2021 |
Q2
2021 |
Q3
2020 |
Q3
2021 |
Q3
2020 |
TTM Change |
Net cash from operating activities |
895 |
602 |
385 |
3,101 |
1,946 |
59.4% |
Free cash flow (non-U.S. GAAP) |
420 |
125 |
(25) |
1,318 |
577 |
128.4% |
Capital expenditure payments, net of proceeds
from sales, were $437 million in the third quarter and $1.28
billion for the year-to-date period. In the year-ago quarter,
capital expenditures, net, were $319 million.
Inventory at the end of the third quarter was
$1.97 billion, compared to $1.93 billion in the year-ago quarter.
Day sales of inventory at quarter-end was 96 days compared to 103
days in the year-ago quarter.
ST exercised the call option for the early
redemption of its 2024 Tranche B of the convertible bond issued in
2017. As a consequence, bondholders exercised their conversion
rights on the total of $750 million principal amount of the Tranche
B convertible bond. In the third quarter, ST fully settled the
Tranche B convertible bond, delivering about 5.8 million treasury
shares and paying $1.26 billion in cash, which includes the $750
million principal amount.
Free cash flow (non-U.S. GAAP) was $420 million
in the third quarter, up from negative $25 million in the year-ago
quarter.
In the third quarter, the Company paid cash
dividends to its shareholders totaling $55 million and executed a
$87 million share buy-back as part of its share repurchase program
launched on July 1, 2021.
ST’s net financial position (non-U.S. GAAP) was
$798 million at October 2, 2021 compared to $1.08 billion at July
3, 2021 and reflected total liquidity of $3.46 billion and total
financial debt of $2.66 billion.
Business Outlook
The Company’s guidance, at the mid-point, for
the 2021 fourth quarter is:
- Net revenues are expected to be $3.40 billion, an increase of
6.3% sequentially, plus or minus 350 basis points;
- Gross margin of about 43.0%, plus or minus 200 basis
points;
- This outlook is based on an assumed effective currency exchange
rate of approximately $1.18 = €1.00 for the 2021 fourth quarter and
includes the impact of existing hedging contracts.
- The fourth quarter will close on December 31, 2021.
Conference Call and Webcast Information
STMicroelectronics will conduct a conference
call with analysts, investors and reporters to discuss its third
quarter 2021 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, http://investors.st.com, and
will be available for replay until November 12, 2021.
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 the Company’s consolidated financial statements
prepared in accordance with U.S. GAAP.
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.
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, 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;
- 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, 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;
- legal, political and economic uncertainty surrounding Brexit
may be a continued source of instability in international markets
and currency exchange rate volatility and may adversely affect
business activity, political stability and economic conditions and
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 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;
- 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 or
suppliers;
- theft, loss, or misuse of personal data about our employees,
customers, or other third parties, and breaches of global and local
privacy legislation, including the EU’s General Data Protection
Regulation (“GDPR”);
- 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 such as the COVID-19 in
locations where we, our customers or our suppliers operate;
- the duration and the severity of the global outbreak of
COVID-19 may continue to negatively impact the global economy in a
significant manner for an extended period of time, and also could
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, 2020, as filed with the SEC on February 24,
2021. 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.
About STMicroelectronics
At ST, we are 46,000 creators and makers of
semiconductor technologies mastering the semiconductor supply chain
with state-of-the-art manufacturing facilities. An independent
device manufacturer, we work with more than 100,000 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 the Internet of Things and 5G
technology. Further information can be found at www.st.com.
For further information, please contact:
INVESTOR RELATIONS:Céline BerthierGroup VP,
Investor RelationsTel: +41 22 929 58 12celine.berthier@st.com
MEDIA RELATIONS:Alexis BretonCorporate External
CommunicationsTel: + 33 6 59 16 79 08alexis.breton@st.com
STMicroelectronics N.V. |
|
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
(in millions of U.S. dollars, except per share data
($)) |
|
|
|
|
|
|
|
|
Three months ended |
|
|
October 2, |
September 26, |
|
|
2021 |
2020 |
|
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
Net sales |
3,192 |
2,663 |
|
Other revenues |
5 |
3 |
|
NET REVENUES |
3,197 |
2,666 |
|
Cost of sales |
(1,867) |
(1,707) |
|
GROSS PROFIT |
1,330 |
959 |
|
Selling, general and administrative |
(324) |
(273) |
|
Research and development |
(433) |
(379) |
|
Other income and expenses, net |
33 |
24 |
|
Impairment, restructuring charges and other related closure
costs |
(1) |
(2) |
|
Total operating expenses |
(725) |
(630) |
|
OPERATING INCOME |
605 |
329 |
|
Interest expense, net |
(8) |
(9) |
|
Other components of pension benefit costs |
(3) |
(2) |
|
Income (loss) on equity-method investments |
- |
1 |
|
Loss on financial instruments, net |
(45) |
(26) |
|
INCOME BEFORE INCOME TAXES AND NONCONTROLLING
INTEREST |
549 |
293 |
|
Income tax expense |
(73) |
(50) |
|
NET INCOME |
476 |
243 |
|
Net income attributable to noncontrolling interest |
(2) |
(1) |
|
NET INCOME ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
474 |
242 |
|
|
|
|
|
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
0.52 |
0.27 |
|
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
0.51 |
0.26 |
|
|
|
|
|
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING
DILUTED EPS |
922.8 |
921.5 |
|
|
|
|
|
STMicroelectronics N.V. |
|
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
(in millions of U.S. dollars, except per share data
($)) |
|
|
|
|
|
|
|
|
Nine months ended |
|
|
October 2, |
September 26, |
|
|
2021 |
2020 |
|
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
Net sales |
9,187 |
6,975 |
|
Other revenues |
18 |
9 |
|
NET REVENUES |
9,205 |
6,984 |
|
Cost of sales |
(5,488) |
(4,449) |
|
GROSS PROFIT |
3,717 |
2,535 |
|
Selling, general and administrative |
(972) |
(802) |
|
Research and development |
(1,321) |
(1,126) |
|
Other income and expenses, net |
109 |
71 |
|
Impairment, restructuring charges and other related closure
costs |
1 |
(12) |
|
Total operating expenses |
(2,183) |
(1,869) |
|
OPERATING INCOME |
1,534 |
666 |
|
Interest expense, net |
(24) |
(12) |
|
Other components of pension benefit costs |
(8) |
(8) |
|
Income (loss) on equity-method investments |
- |
1 |
|
Loss on financial instruments, net |
(43) |
(26) |
|
INCOME BEFORE INCOME TAXES AND NONCONTROLLING
INTEREST |
1,459 |
621 |
|
Income tax expense |
(204) |
(96) |
|
NET INCOME |
1,255 |
525 |
|
Net income attributable to noncontrolling interest |
(4) |
- |
|
NET INCOME ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
1,251 |
525 |
|
|
|
|
|
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
1.38 |
0.59 |
|
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
1.35 |
0.57 |
|
|
|
|
|
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING
DILUTED EPS |
927.2 |
916.4 |
|
|
|
|
|
|
|
|
|
STMicroelectronics N.V. |
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
|
|
As at |
October 2, |
July 3, |
December 31, |
In millions of U.S. dollars |
2021 |
2021 |
2020 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
3,112 |
3,749 |
3,006 |
Short-term deposits |
350 |
500 |
581 |
Marketable securities |
- |
- |
133 |
Trade accounts receivable, net |
1,611 |
1,571 |
1,465 |
Inventories |
1,969 |
1,970 |
1,841 |
Other current assets |
573 |
650 |
584 |
Total current assets |
7,615 |
8,440 |
7,610 |
Goodwill |
318 |
322 |
330 |
Other intangible assets, net |
447 |
442 |
445 |
Property, plant and equipment, net |
5,172 |
5,037 |
4,596 |
Non-current deferred tax assets |
681 |
688 |
739 |
Long-term investments |
10 |
10 |
10 |
Other non-current assets |
627 |
576 |
724 |
|
7,255 |
7,075 |
6,844 |
Total assets |
14,870 |
15,515 |
14,454 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Short-term debt |
205 |
872 |
795 |
Trade accounts payable |
1,352 |
1,366 |
1,166 |
Other payables and accrued liabilities |
1,032 |
975 |
966 |
Dividends payable to stockholders |
115 |
168 |
42 |
Accrued income tax |
147 |
95 |
84 |
Total current liabilities |
2,851 |
3,476 |
3,053 |
Long-term debt |
2,459 |
2,296 |
1,826 |
Post-employment benefit obligations |
493 |
497 |
506 |
Long-term deferred tax liabilities |
61 |
57 |
75 |
Other long-term liabilities |
436 |
473 |
488 |
|
3,449 |
3,323 |
2,895 |
Total liabilities |
6,300 |
6,799 |
5,948 |
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, 911,276,920 shares issued, 908,312,878 shares
outstanding) |
1,157 |
1,157 |
1,157 |
Additional Paid-in Capital |
2,478 |
3,174 |
3,062 |
Retained earnings |
4,476 |
4,053 |
3,599 |
Accumulated other comprehensive income |
513 |
571 |
723 |
Treasury stock |
(116) |
(300) |
(93) |
Total parent company stockholders' equity |
8,508 |
8,655 |
8,448 |
Noncontrolling interest |
62 |
61 |
58 |
Total equity |
8,570 |
8,716 |
8,506 |
Total liabilities and equity |
14,870 |
15,515 |
14,454 |
|
|
|
|
|
|
|
|
STMicroelectronics N.V. |
|
|
|
|
|
|
|
SELECTED CASH FLOW DATA |
|
|
|
|
|
|
|
Cash Flow Data (in US$ millions) |
Q3 2021 |
Q2 2021 |
Q3 2020 |
|
|
|
|
Net Cash from operating activities |
895 |
602 |
385 |
Net Cash used in investing activities |
(325) |
(272) |
(400) |
Net Cash from (used in) financing activities |
(1,205) |
(35) |
928 |
Net Cash increase (decrease) |
(637) |
295 |
914 |
|
|
|
|
Selected Cash Flow Data (in US$ millions) |
Q3 2021 |
Q2 2021 |
Q3 2020 |
|
|
|
|
Depreciation & amortization |
264 |
258 |
234 |
Net payment for Capital expenditures |
(437) |
(438) |
(319) |
Dividends paid to stockholders |
(55) |
(52) |
(38) |
Change in inventories, net |
(13) |
(122) |
60 |
|
|
|
|
AppendixSTMicroelectronicsSupplemental
Financial Information
|
Q3
2021 |
Q2
2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Net Revenues By Market Channel (%) |
|
|
|
|
|
Total OEM |
68% |
64% |
67% |
74% |
74% |
Distribution |
32% |
36% |
33% |
26% |
26% |
|
|
|
|
|
|
€/$ Effective Rate |
1.19 |
1.19 |
1.19 |
1.16 |
1.13 |
|
|
|
|
|
|
Product Group Data (US$ m) |
|
|
|
|
|
Automotive & Discrete Group (ADG) |
|
|
|
|
|
- Net Revenues |
1,005 |
1,077 |
1,043 |
953 |
851 |
- Operating Income |
108 |
102 |
85 |
94 |
49 |
Analog, MEMS & Sensors Group (AMS) |
|
|
|
|
|
- Net Revenues |
1,268 |
1,013 |
1,083 |
1,419 |
997 |
- Operating Income |
304 |
189 |
187 |
402 |
175 |
Microcontrollers & Digital ICs Group
(MDG) |
|
|
|
|
|
- Net Revenues |
920 |
897 |
886 |
859 |
815 |
- Operating Income |
220 |
206 |
172 |
174 |
142 |
Others (a) |
|
|
|
|
|
- Net Revenues |
4 |
5 |
4 |
4 |
3 |
- Operating Income (Loss) |
(27) |
(8) |
(4) |
(13) |
(37) |
Total |
|
|
|
|
|
- Net Revenues |
3,197 |
2,992 |
3,016 |
3,235 |
2,666 |
- Operating Income |
605 |
489 |
440 |
657 |
329 |
(a) Net revenues of Others include
revenues from sales assembly services and other revenues. Operating
income (loss) of Others includes items such as unused capacity
charges, including reduced manufacturing activity due to COVID-19,
impairment, restructuring charges and other related closure costs,
management reorganization costs, phase out and start-up costs of
certain manufacturing facilities, 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$ m) |
Q3
2021 |
Q2
2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Unused Capacity Charges |
14 |
- |
2 |
17 |
38 |
Impairment & Restructuring Charges |
1 |
(2) |
- |
(1) |
2 |
(Appendix –
continued)STMicroelectronicsSupplemental
Non-U.S. GAAP Financial InformationU. S. GAAP –
Non-U.S. GAAP Reconciliation
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.
The Company believes that these non-U.S. GAAP
financial measures provide useful information for investors and
management because they offer, when read in conjunction with the
Company’s U.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) to facilitate a comparison of the Company’s results of
operations against investor and analyst financial models and
valuations, which may exclude these items.
Net Financial Position
(non-U.S.
GAAP measure)
Net Financial Position, a non-U.S. GAAP measure,
represents the difference between our total liquidity and our total
financial debt. Our total liquidity includes cash and cash
equivalents, restricted cash, short-term deposits, and marketable
securities, and our total financial debt includes short-term debt
and long-term debt, as represented in our Consolidated Balance
Sheets.
We believe our Net Financial Position 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, restricted cash, short-term deposits and
marketable securities and the total level of our financial debt.
Our definition of Net Financial Position may differ from
definitions used by other companies and therefore comparability may
be limited.
(US$ m) |
Oct 2 2021 |
Jul 3 2021 |
Apr 3 2021 |
Dec 31 2020 |
Sep 26 2020 |
Cash and cash equivalents |
3,112 |
3,749 |
3,454 |
3,006 |
2,714 |
Short term deposits |
350 |
500 |
573 |
581 |
679 |
Marketable securities |
- |
- |
132 |
133 |
134 |
Total liquidity |
3,462 |
4,249 |
4,159 |
3,720 |
3,527 |
Short-term debt |
(205) |
(872) |
(837) |
(795) |
(983)(1) |
Long-term debt(2) |
(2,459) |
(2,296) |
(2,137) |
(1,826) |
(1,882) |
Total financial debt |
(2,664) |
(3,168) |
(2,974) |
(2,621) |
(2,865) |
Net Financial Position |
798 |
1,081 |
1,185 |
1,099 |
662 |
(1) 2024 Tranche B of the convertible bond
issued in 2017 was reclassified to short-term debt in line with
contractual terms.(2) Long-term debt contains standard
conditions but does not impose minimum financial ratios. Also,
committed credit facilities for $0.6 billion equivalent, are
currently undrawn.
(Appendix –
continued)STMicroelectronics
Free Cash Flow
(non-U.S.
GAAP measure)
Free Cash Flow, which is a non-U.S. GAAP
measure, is defined as (i) net cash from operating activities plus
(ii) net cash used in investing activities, excluding payment for
purchases of (and proceeds from matured) marketable securities and
net investment in short-term deposits, which are considered as
temporary financial investments. The result of this definition is
ultimately net cash from operating activities plus payment for
purchase (and proceeds from sale) of tangible, intangible and
financial assets and net cash paid for business acquisitions.
We believe Free Cash Flow provides useful
information for investors and management because it measures our
capacity to generate cash from our operating and investing
activities to sustain our operations. Free Cash Flow does not
represent total cash flow since it does not include the cash flows
generated by or used in financing activities.
Free Cash Flow reconciles with the total cash
flow and the net cash increase (decrease) by including the payment
for purchases of (and proceeds from matured) marketable securities
and net investment in (and proceeds from) short-term deposits, the
net cash from (used in) financing activities and the effect of
changes in exchange rates. Our definition of Free Cash Flow may
differ from definitions used by other companies.
(US$ m) |
Q3 2021 |
Q2
2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Net cash from operating activities |
895 |
602 |
682 |
922 |
385 |
Net cash used in investing activities |
(325) |
(272) |
(413) |
(312) |
(400) |
Payment for purchase of (and proceeds from matured) marketable
securities and net investment in (and proceeds from) short-term
deposits |
(150) |
(205) |
(8) |
(98) |
(10) |
Free Cash Flow |
420 |
125 |
261 |
512 |
(25) |
- STM_C3048C - Q321 results
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