PR No: C3108C
STMicroelectronics Reports
2022 Second
Quarter Financial Results
-
Q2 net revenues
$3.84 billion; gross
margin 47.4%; operating
margin 26.2%; net income
$867 million
- H1 net revenues
$7.38
billion; gross margin
47.1%; operating margin
25.5%; net income
$1.61
billion
- Business
outlook at the
mid-point: Q3
net revenues of
$4.24
billion and gross margin of
47.0%
Geneva, July
28, 2022 -
STMicroelectronics (NYSE: STM), a global semiconductor
leader serving customers across the spectrum of electronics
applications, reported U.S. GAAP financial results for the second
quarter ended July 2, 2022. This press release also contains
non-U.S. GAAP measures (see Appendix for additional
information).
ST reported second quarter net revenues of $3.84
billion, gross margin of 47.4%, operating margin of 26.2%, and net
income of $867 million or $0.92 diluted earnings per share.
Jean-Marc Chery, STMicroelectronics President
& CEO, commented:
-
“Q2 net
revenues and gross margin came in
above the mid-point of our business outlook range driven
by continued strong demand
for our product
portfolio.
- “On a
year-over-year basis, Q2
net revenues increased
28.3%,
operating
margin increased
to
26.2%
from
16.3% and net
income doubled to
$867 million.
- “First half net revenues
increased 22.9% year-over-year, driven by growth
in all product groups and
sub-groups. Operating margin was 25.5% and net income was
$1.61 billion.
-
“ST’s third
quarter outlook, at the mid-point, is for net revenues of
$4.24 billion,
increasing year-over-year by
32.6%
and sequentially by
10.5%;
gross margin is expected to be about
47.0%.
-
“We will
now drive the Company based on a plan for FY22
revenues in the range of
$15.9 billion to
$16.2
billion and gross
margin to be about
47.0%.”
Quarterly Financial Summary (U.S. GAAP)
(US$ m, except per share data) |
Q2
2022 |
Q1
2022 |
Q2
2021 |
Q/Q |
Y/Y |
Net Revenues |
$3,837 |
$3,546 |
$2,992 |
8.2% |
28.3% |
Gross Profit |
$1,819 |
$1,655 |
$1,212 |
10.0% |
50.2% |
Gross Margin |
47.4% |
46.7% |
40.5% |
70 bps |
690 bps |
Operating Income |
$1,004 |
$877 |
$489 |
14.4% |
105.4% |
Operating Margin |
26.2% |
24.7% |
16.3% |
150 bps |
990 bps |
Net Income (a) |
$867 |
$747 |
$412 |
16.1% |
110.4% |
Diluted Earnings Per Share (b) |
$0.92 |
$0.79 |
$0.44 |
16.5% |
109.1% |
(a) Following a change in U.S.
GAAP reporting guidance effective January 1, 2022, Q1 and Q2 2022
net income does not include phantom interests associated with
convertible bonds. Prior periods have not been restated.
(b) Q1 and Q2 2022 diluted earnings per share
includes the full dilutive effect of our outstanding convertible
debt upon adoption on January 1, 2022 of the new U.S. GAAP
reporting guidance. Prior periods have not been restated.
Second Quarter
2022 Summary Review
Net Revenues By Product Group (US$ m) |
Q2
2022 |
Q1
2022 |
Q2
2021 |
Q/Q |
Y/Y |
Automotive and Discrete Group (ADG) |
1,454 |
1,256 |
1,077 |
15.8% |
35.1% |
Analog, MEMS and Sensors Group (AMS) |
1,127 |
1,087 |
1,013 |
3.7% |
11.3% |
Microcontrollers and Digital ICs Group (MDG) |
1,251 |
1,198 |
897 |
4.4% |
39.5% |
Others |
5 |
5 |
5 |
- |
- |
Total Net Revenues |
3,837 |
3,546 |
2,992 |
8.2% |
28.3% |
Net revenues totaled $3.84
billion, a year-over-year increase of 28.3%. On a year-over-year
basis, the Company recorded higher net sales in its product groups
and all sub-groups. Year-over-year net sales to OEMs and
Distribution increased 31.7% and 22.2%, respectively. On a
sequential basis, net revenues increased 8.2%, 240 basis points
above the mid-point of the Company’s guidance. All product groups
reported increases in net revenues on a sequential basis.
Gross profit totaled $1.82
billion, a year-over-year increase of 50.2%. Gross
margin of 47.4% increased 690 basis points year-over-year,
principally due to favorable pricing and improved product mix
partially offset by inflation of manufacturing input costs and was
140 basis points above the mid-point of the Company’s guidance.
Operating income increased
105.4% to $1.0 billion, compared to $489 million in the year-ago
quarter. The Company’s operating margin increased
990 basis points on a year-over-year basis to 26.2% of net
revenues, compared to 16.3% in the 2021 second 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
251.1% to $359.2 million. Operating margin was 24.7% compared to
9.5%.
Analog, MEMS and Sensors Group (AMS):
- Revenue increased in Analog, in
MEMS and in Imaging.
- Operating profit increased by 42.1%
to $268.4 million. Operating margin was 23.8% compared to
18.6%.
Microcontrollers and Digital ICs Group
(MDG):
- Revenue increased in both
Microcontrollers and in RF Communications.
- Operating profit increased by
106.6% to $424.7 million. Operating margin was 34.0% compared to
22.9%
Net income increased to $867
million and diluted earnings per share to $0.92
compared to $412 million and $0.44, respectively, in the year-ago
quarter.
Cash Flow and Balance Sheet Highlights
|
|
|
|
Trailing 12 Months |
(US$ m) |
Q2
2022 |
Q1
2022 |
Q2
2021 |
Q2
2022 |
Q2
2021 |
TTM Change |
Net cash from operating activities |
1,056 |
945 |
602 |
3,777 |
2,591 |
45.8% |
Free cash flow (non-U.S. GAAP) |
230 |
82 |
125 |
1,046 |
873 |
19.8% |
Capital expenditure payments, net of proceeds
from sales, were $809 million in the second quarter. In the
year-ago quarter, capital expenditures, net, were $438 million.
Inventory at the end of the second quarter was
$2.31 billion, compared to $1.97 billion in the year-ago quarter.
Day sales of inventory at quarter-end was 104 days compared to 101
days in the year-ago quarter.
Free cash flow (non-U.S. GAAP) was $230 million
in the second quarter, compared to $125 million in the year-ago
quarter.
In the second quarter, the Company paid cash
dividends to its stockholders totaling $54 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) was
$924 million at July 2, 2022 compared to $840 million at April 2,
2022 and reflected total liquidity of $3.44 billion and total
financial debt of $2.52 billion.
Business Outlook
The Company’s guidance, at the mid-point, for
the 2022 third quarter is:
- Net revenues are expected to be
$4.24 billion, an increase of 10.5% sequentially, plus or minus 350
basis points;
- Gross margin of 47.0%, plus or
minus 200 basis points;
- This outlook is based on an assumed
effective currency exchange rate of approximately $1.09 = €1.00 for
the 2022 third quarter and includes the impact of existing hedging
contracts; and
- The third quarter will close on
October 1, 2022.
Conference Call and Webcast Information
STMicroelectronics will conduct a conference
call with analysts, investors and reporters to discuss its second
quarter 2022 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 August 12, 2022.
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 (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, military
conflicts, (including the military conflict between Russia and the
Ukraine), 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 (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 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
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 pandemic 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 commitment to be
carbon neutral by 2027;
- potential loss of key employees and
potential inability to recruit and retain qualified employees as a
result of the COVID-19 pandemic, remote-working arrangements and
the corresponding limitation on social and professional
interaction;
- 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 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 risks 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, 2021 as filed with the SEC on February 24, 2022.
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 risks
or uncertainties listed under “Item 3. Key Information — Risk
Factors”from time to time in our Securities and Exchange Commission
filings, could have a material adverse effect on our businessand/or
financial condition.
About STMicroelectronics
At ST, we are 48,000 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 the Internet of Things
and connectivity. ST is committed to becoming carbon neutral by
2027. 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 |
|
|
July 2, |
July 3, |
|
|
2022 |
2021 |
|
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
Net sales |
3,830 |
2,985 |
|
Other revenues |
7 |
7 |
|
NET REVENUES |
3,837 |
2,992 |
|
Cost of sales |
(2,018) |
(1,780) |
|
GROSS PROFIT |
1,819 |
1,212 |
|
Selling, general and administrative |
(366) |
(323) |
|
Research and development |
(489) |
(444) |
|
Other income and expenses, net |
40 |
42 |
|
Impairment, restructuring charges and other related closure
costs |
- |
2 |
|
Total operating expenses |
(815) |
(723) |
|
OPERATING INCOME |
1,004 |
489 |
|
Interest income (expense), net |
6 |
(8) |
|
Other components of pension benefit costs |
(2) |
(3) |
|
INCOME BEFORE INCOME TAXES AND NONCONTROLLING
INTEREST |
1,008 |
478 |
|
Income tax expense |
(139) |
(65) |
|
NET INCOME |
869 |
413 |
|
Net income attributable to noncontrolling interest |
(2) |
(1) |
|
NET INCOME ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
867 |
412 |
|
|
|
|
|
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
0.96 |
0.46 |
|
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
0.92 |
0.44 |
|
|
|
|
|
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING
DILUTED EPS |
946.8 |
927.4 |
|
|
|
|
|
STMicroelectronics N.V. |
|
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
(in millions of U.S. dollars, except per share data
($)) |
|
|
|
|
|
|
|
|
Six months ended |
|
|
July 2, |
July 3, |
|
|
2022 |
2021 |
|
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
Net sales |
7,370 |
5,995 |
|
Other revenues |
13 |
13 |
|
NET REVENUES |
7,383 |
6,008 |
|
Cost of sales |
(3,909) |
(3,621) |
|
GROSS PROFIT |
3,474 |
2,387 |
|
Selling, general and administrative |
(723) |
(648) |
|
Research and development |
(966) |
(888) |
|
Other income and expenses, net |
96 |
76 |
|
Impairment, restructuring charges and other related closure
costs |
- |
2 |
|
Total operating expenses |
(1,593) |
(1,458) |
|
OPERATING INCOME |
1,881 |
929 |
|
Interest income (expense), net |
7 |
(16) |
|
Other components of pension benefit costs |
(5) |
(5) |
|
Gain on financial instruments, net |
- |
2 |
|
INCOME BEFORE INCOME TAXES AND NONCONTROLLING
INTEREST |
1,883 |
910 |
|
Income tax expense |
(268) |
(131) |
|
NET INCOME |
1,615 |
779 |
|
Net income attributable to noncontrolling interest |
(1) |
(3) |
|
NET INCOME ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
1,614 |
776 |
|
|
|
|
|
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
1.78 |
0.86 |
|
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
1.70 |
0.84 |
|
|
|
|
|
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING
DILUTED EPS |
947.6 |
929.5 |
|
|
|
|
|
|
|
|
|
STMicroelectronics N.V. |
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
|
|
As at |
July 2, |
April 2, |
December 31, |
In millions of U.S. dollars |
2022 |
2022 |
2021 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
3,028 |
2,828 |
3,225 |
Short-term deposits |
186 |
427 |
291 |
Marketable securities |
229 |
139 |
- |
Trade accounts receivable, net |
2,074 |
1,809 |
1,759 |
Inventories |
2,307 |
2,147 |
1,972 |
Other current assets |
633 |
633 |
581 |
Total current assets |
8,457 |
7,983 |
7,828 |
Goodwill |
294 |
307 |
313 |
Other intangible assets, net |
452 |
462 |
438 |
Property, plant and equipment, net |
6,793 |
6,151 |
5,660 |
Non-current deferred tax assets |
565 |
604 |
652 |
Long-term investments |
10 |
10 |
10 |
Other non-current assets |
705 |
705 |
639 |
|
8,819 |
8,239 |
7,712 |
Total assets |
17,276 |
16,222 |
15,540 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Short-term debt |
134 |
140 |
143 |
Trade accounts payable |
1,998 |
1,608 |
1,582 |
Other payables and accrued liabilities |
1,217 |
1,207 |
1,101 |
Dividends payable to stockholders |
169 |
6 |
55 |
Accrued income tax |
194 |
113 |
68 |
Total current liabilities |
3,712 |
3,074 |
2,949 |
Long-term debt |
2,385 |
2,414 |
2,396 |
Post-employment benefit obligations |
419 |
436 |
442 |
Long-term deferred tax liabilities |
46 |
47 |
64 |
Other long-term liabilities |
492 |
424 |
416 |
|
3,342 |
3,321 |
3,318 |
Total liabilities |
7,054 |
6,395 |
6,267 |
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, 911,281,920 shares issued, 907,613,201 shares
outstanding) |
1,157 |
1,157 |
1,157 |
Additional Paid-in Capital |
2,520 |
2,472 |
2,533 |
Retained earnings |
6,421 |
5,995 |
5,223 |
Accumulated other comprehensive income |
208 |
426 |
496 |
Treasury stock |
(149) |
(286) |
(200) |
Total parent company stockholders' equity |
10,157 |
9,764 |
9,209 |
Noncontrolling interest |
65 |
63 |
64 |
Total equity |
10,222 |
9,827 |
9,273 |
Total liabilities and equity |
17,276 |
16,222 |
15,540 |
|
|
|
|
|
|
|
|
|
|
|
|
STMicroelectronics N.V. |
|
|
|
|
|
|
|
SELECTED CASH FLOW DATA |
|
|
|
|
Cash Flow Data (in US$ millions) |
Q2 2022 |
Q1 2022 |
Q2 2021 |
|
|
|
|
Net Cash from operating activities |
1,056 |
945 |
602 |
Net Cash used in investing activities |
(676) |
(1,140) |
(272) |
Net Cash used in financing activities |
(177) |
(200) |
(35) |
Net Cash increase (decrease) |
200 |
(397) |
295 |
|
|
|
|
Selected Cash Flow Data (in US$ millions) |
Q2 2022 |
Q1 2022 |
Q2 2021 |
|
|
|
|
Depreciation & amortization |
290 |
283 |
258 |
Net payment for Capital expenditures |
(809) |
(840) |
(438) |
Dividends paid to stockholders |
(54) |
(49) |
(52) |
Change in inventories, net |
(205) |
(194) |
(122) |
|
|
|
|
AppendixSTMicroelectronicsSupplemental
Financial Information
|
Q2
2022 |
Q1 2022 |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Net Revenues By Market Channel (%) |
|
|
|
|
|
Total OEM |
65% |
66% |
67% |
68% |
64% |
Distribution |
35% |
34% |
33% |
32% |
36% |
|
|
|
|
|
|
€/$ Effective Rate |
1.12 |
1.15 |
1.17 |
1.19 |
1.19 |
|
|
|
|
|
|
Product Group Data (US$ m) |
|
|
|
|
|
Automotive & Discrete Group (ADG) |
|
|
|
|
|
- Net Revenues |
1,454 |
1,256 |
1,226 |
1,005 |
1,077 |
- Operating Income |
359 |
235 |
216 |
108 |
102 |
Analog, MEMS & Sensors Group (AMS) |
|
|
|
|
|
- Net Revenues |
1,127 |
1,087 |
1,260 |
1,268 |
1,013 |
- Operating Income |
269 |
246 |
335 |
304 |
189 |
Microcontrollers & Digital ICs Group
(MDG) |
|
|
|
|
|
- Net Revenues |
1,251 |
1,198 |
1,062 |
920 |
897 |
- Operating Income |
425 |
407 |
318 |
220 |
206 |
Others (a) |
|
|
|
|
|
- Net Revenues |
5 |
5 |
8 |
4 |
5 |
- Operating Income (Loss) |
(49) |
(11) |
16 |
(27) |
(8) |
Total |
|
|
|
|
|
- Net Revenues |
3,837 |
3,546 |
3,556 |
3,197 |
2,992 |
- Operating Income |
1,004 |
877 |
885 |
605 |
489 |
(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
and incidents leading to power outage, impairment, restructuring
charges and other related closure costs, management reorganization
costs, phase out and start-up costs of certain manufacturing
facilities, and other unallocated income (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) |
Q2
2022 |
Q1 2022 |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Unused Capacity Charges |
13 |
9 |
- |
14 |
- |
Impairment & Restructuring Charges |
- |
- |
4 |
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, if any, short-term deposits, and
marketable securities, and our total financial debt includes
short-term debt and long-term debt, as reported 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, if any, 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) |
Jul 2 2022 |
Apr 2 2022 |
Dec 31 2021 |
Oct 2 2021 |
Jul 3 2021 |
Cash and cash equivalents |
3,028 |
2,828 |
3,225 |
3,112 |
3,749 |
Short term deposits |
186 |
427 |
291 |
350 |
500 |
Marketable securities |
229 |
139 |
- |
- |
- |
Total liquidity |
3,443 |
3,394 |
3,516 |
3,462 |
4,249 |
Short-term debt |
(134) |
(140) |
(143) |
(205) |
(872) |
Long-term debt (a) |
(2,385) |
(2,414) |
(2,396) |
(2,459) |
(2,296) |
Total financial debt |
(2,519) |
(2,554) |
(2,539) |
(2,664) |
(3,168) |
Net Financial Position (b) |
924 |
840 |
977 |
798 |
1,081 |
(a) Long-term debt contains standard
conditions but does not impose minimum financial ratios. Also,
committed credit facilities for $1.3 billion equivalent, are
currently undrawn.(b) Q1 and Q2 2022 net financial
position includes a $107 million increase in long-term debt
following the adoption on January 1, 2022 of the new U.S. GAAP
reporting guidance related to convertible debt. Prior periods have
not been restated.
(Appendix –
continued)STMicroelectronics
Free Cash Flow
(non-U.S.
GAAP measure)
Free Cash Flow, which is a non-U.S. GAAP
measure, is defined as (i) net cash from operating activities plus
(ii) net cash used in investing activities, excluding payment for
purchases of (and proceeds from matured) marketable securities and
net investment in (and proceeds from) short-term deposits, which
are considered as temporary financial investments. The result of
this definition is ultimately net cash from operating activities
plus payment for purchase (and proceeds from sale) of tangible,
intangible and financial assets and net cash paid for business
acquisitions.
We believe Free Cash Flow provides useful
information for investors and management because it measures our
capacity to generate cash from our operating and investing
activities to sustain our operations. Free Cash Flow does not
represent total cash flow since it does not include the cash flows
generated by or used in financing activities.
Free Cash Flow reconciles with the total cash
flow and the net cash increase (decrease) by including the payment
for purchases of (and proceeds from matured) marketable securities
and net investment in (and proceeds from) short-term deposits, the
net cash from (used in) financing activities and the effect of
changes in exchange rates. Our definition of Free Cash Flow may
differ from definitions used by other companies.
(US$ m) |
Q2
2022 |
Q1 2022 |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Net cash from operating activities |
1,056 |
945 |
881 |
895 |
602 |
Net cash used in investing activities |
(676) |
(1,140) |
(508) |
(325) |
(272) |
Payment for purchase of (and proceeds from matured) marketable
securities and net investment in (and proceeds from) short-term
deposits |
(150) |
277 |
(59) |
(150) |
(205) |
Free Cash Flow |
230 |
82 |
314 |
420 |
125 |
- C3108C - Q222 Earnings - FINAL FOR PUBLICATION
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