STMicroelectronics Reports 2024 First Quarter Financial Results
PR No: C3254C
STMicroelectronics Reports 2024 First
Quarter Financial Results
- Q1 net revenues $3.47
billion; gross margin 41.7%; operating margin 15.9%; net income
$513 million
- Q1 free cash
flow1 $(134) million after Net
Capex1 of $967
million
- Business outlook at
mid-point: Q2 net revenues of $3.2 billion and gross margin of
40%
Geneva, April 25, 2024 –
STMicroelectronics N.V. (“ST”) (NYSE: STM), a global
semiconductor leader serving customers across the spectrum of
electronics applications, reported U.S. GAAP financial results for
the first quarter ended March 30, 2024. This press release also
contains non-U.S. GAAP measures (see Appendix for additional
information).
ST reported first quarter net revenues of $3.47
billion, gross margin of 41.7%, operating margin of 15.9%, and net
income of $513 million or $0.54 diluted earnings per share.
Jean-Marc Chery, ST President & CEO,
commented:
- “Q1 net revenues and gross
margin both came in below the midpoint of our business outlook
range, driven by lower revenues in Automotive and Industrial,
partially offset by higher revenues in Personal
Electronics.”
- “On a year-over-year basis,
Q1 net revenues decreased 18.4%, operating margin decreased to
15.9% from 28.3% and net income decreased 50.9% to $513
million.”
- “During the quarter,
Automotive semiconductor demand slowed down compared to our
expectations, entering a deceleration phase, while the ongoing
Industrial correction accelerated.”
- “Our second quarter
business outlook, at the mid-point, is for net revenues of $3.2
billion, decreasing year-over-year by 26.0% and decreasing
sequentially by 7.6%; gross margin is expected to be about
40%.”
- “We will now drive the
Company based on a revised plan for FY24 revenues in the range of
$14 billion to $15 billion. Within this plan, we expect a gross
margin in the low 40’s.”
- “We plan to maintain our
Net Capex1 plan for FY24 at about
$2.5 billion focusing on our strategic manufacturing
initiatives.”
Quarterly Financial Summary (U.S. GAAP)
(US$ m, except per share data) |
Q1 2024 |
Q4 2023 |
Q1 2023 |
Q/Q |
Y/Y |
Net Revenues |
$3,465 |
$4,282 |
$4,247 |
-19.1% |
-18.4% |
Gross Profit |
$1,444 |
$1,949 |
$2,110 |
-26.0% |
-31.6% |
Gross Margin |
41.7% |
45.5% |
49.7% |
-380 bps |
-800 bps |
Operating Income |
$551 |
$1,023 |
$1,201 |
-46.1% |
-54.1% |
Operating Margin |
15.9% |
23.9% |
28.3% |
-800 bps |
-1,240 bps |
Net Income |
$513 |
$1,076 |
$1,044 |
-52.4% |
-50.9% |
Diluted Earnings Per Share |
$0.54 |
$1.14 |
$1.10 |
-52.6% |
-50.9% |
First Quarter 2024 Summary Review
Reminder: On January 10, 2024, ST announced a new organization
which implied a change in segment reporting starting Q1 2024.
Comparative periods have been adjusted accordingly. See Appendix
for more detail.
Net Revenues by Reportable Segment (US$ m) |
Q1 2024 |
Q4 2023 |
Q1 2023 |
Q/Q |
Y/Y |
Analog products, MEMS and Sensors (AM&S) segment |
1,217 |
1,418 |
1,400 |
-14.2% |
-13.1% |
Power and discrete products (P&D) segment |
820 |
965 |
909 |
-15.1% |
-9.8% |
Subtotal: Analog, Power & Discrete, MEMS and Sensors
(APMS) Product Group |
2,037 |
2,383 |
2,309 |
-14.5% |
-11.8% |
Microcontrollers (MCU) segment |
950 |
1,272 |
1,448 |
-25.3% |
-34.4% |
Digital ICs and RF Products (D&RF) segment |
475 |
623 |
486 |
-23.8% |
-2.1% |
Subtotal: Microcontrollers, Digital ICs and RF products
(MDRF) Product Group |
1,425 |
1,895 |
1,934 |
-24.8% |
-26.3% |
Others |
3 |
4 |
4 |
- |
- |
Total Net Revenues |
3,465 |
4,282 |
4,247 |
-19.1% |
-18.4% |
Net revenues totaled $3.47 billion,
representing a year-over-year decrease of 18.4%. Year-over-year net
sales to OEMs and Distribution decreased 11.5% and 30.8%,
respectively. On a sequential basis, net revenues decreased 19.1%,
320 basis points lower than the mid-point of ST’s guidance.
Gross profit totaled $1.44
billion, representing a year-over-year decrease of 31.6%.
Gross margin of 41.7%, 60 basis points below the
mid-point of ST’s guidance, decreased 800 basis points
year-over-year, mainly due to the combination of sales price and
product mix, unused capacity charges and reduced manufacturing
efficiencies.
Operating income decreased
54.1% to $551 million, compared to $1.20 billion in the year-ago
quarter. ST’s operating margin decreased 1,240
basis points on a year-over-year basis to 15.9% of net revenues,
compared to 28.3% in the first quarter of 2023.
By reportable segment, compared
with the year-ago quarter:
In Analog, Power & Discrete, MEMS and
Sensors (APMS) Product Group:
Analog products, MEMS and Sensors (AM&S)
segment:
- Revenue decreased 13.1% mainly due
to a decrease in MEMS and Imaging.
- Operating profit decreased by 44.8%
to $185 million. Operating margin was 15.2% compared to 23.9%.
Power and Discrete products (P&D)
segment:
- Revenue decreased 9.8% mainly due
to a decrease in Discrete.
- Operating profit decreased by 41.6%
to $138 million. Operating margin was 16.8% compared to 26.0%.
In Microcontrollers, Digital ICs and RF products
(MDRF) Product Group:
Microcontrollers (MCU) segment:
- Revenue decreased 34.4% mainly due
to a decrease in GP MCU.
- Operating profit decreased by 66.7%
to $185 million. Operating margin was 19.5% compared to 38.3%.
Digital ICs and RF products (D&RF)
segment:
- Revenue decreased 2.1% due to a decrease in ADAS more than
offsetting an increase in RF Communications.
- Operating profit decreased by 8.2%
to $150 million. Operating margin was 31.8% compared to 33.9%.
Net income and diluted
Earnings Per Share decreased to $513 million and $0.54
respectively compared to $1.04 billion and $1.10 respectively in
the year-ago quarter.
Cash Flow and Balance Sheet Highlights
|
|
|
|
Trailing 12 Months |
(US$ m) |
Q1 2024 |
Q4 2023 |
Q1 2023 |
Q1 2024 |
Q1 2023 |
TTM Change |
Net cash from operating activities |
859 |
1,480 |
1,320 |
5,531 |
5,577 |
-0.8% |
Free cash flow (non-U.S. GAAP)1 |
(134) |
652 |
206 |
1,434 |
1,715 |
-16.4% |
Net cash from operating activities was $859 million in the first
quarter compared to $1.32 billion in the year-ago quarter.
Net Capex (non-U.S. GAAP)1 was $967 million in
the first quarter compared to $1.09 billion in the year-ago
quarter.
Free cash flow (non-U.S. GAAP)1 was negative at
$134 million in the first quarter, compared to positive $206
million in the year-ago quarter.
Inventory at the end of the first quarter was
$2.69 billion, compared to $2.70 billion in the previous quarter
and $2.87 billion in the year-ago quarter. Days sales of inventory
at quarter-end was 122 days compared to 104 days in the previous
quarter and 122 days in the year-ago quarter.
In the first quarter, ST paid cash dividends to
its stockholders totaling $48 million and executed a $87 million
share buy-back as part of its current share repurchase program.
ST’s net financial position (non-U.S. GAAP)1 was
$3.13 billion as of March 30, 2024, compared to $3.16 billion as of
December 31, 2023 and reflected total liquidity of $6.24 billion
and total financial debt of $3.11 billion. Adjusted net financial
position (non-U.S. GAAP)1, taking into consideration the effect on
total liquidity of advances from capital grants for which capital
expenditures have not been incurred yet, stood at $2.78 billion as
of March 30, 2024.
Business Outlook
ST’s guidance, at the mid-point, for the 2024
second quarter is:
- Net revenues are expected to be
$3.2 billion, a decrease of 7.6% sequentially, plus or minus 350
basis points.
- Gross margin of 40%, plus or minus
200 basis points.
- This outlook is based on an assumed
effective currency exchange rate of approximately $1.08 = €1.00 for
the 2024 second quarter and includes the impact of existing hedging
contracts.
- The second quarter will close on
June 29, 2024.
Conference Call and Webcast Information
ST will conduct a conference call with analysts,
investors and reporters to discuss its first quarter 2024 financial
results and current business outlook today at 9:30 a.m. Central
European Time (CET) / 3:30 a.m. U.S. Eastern Time (ET). A live
webcast (listen-only mode) of the conference call will be
accessible at ST’s website, https://investors.st.com, and will be
available for replay until May 10, 2024.
Use of Supplemental Non-U.S. GAAP Financial
Information
This press release contains supplemental
non-U.S. GAAP financial information.
Readers are cautioned that these measures are
unaudited and not prepared in accordance with U.S. GAAP and should
not be considered as a substitute for U.S. GAAP financial measures.
In addition, such non-U.S. GAAP financial measures may not be
comparable to similarly titled information from other companies. To
compensate for these limitations, the supplemental non-U.S. GAAP
financial information should not be read in isolation, but only in
conjunction with ST’s consolidated financial statements prepared in
accordance with U.S. GAAP.
See the Appendix of this press release for a
reconciliation of ST’s non-U.S. GAAP financial measures to their
corresponding U.S. GAAP financial measures.
Forward-looking Information
Some of the statements contained in this release
that are not historical facts are statements of future expectations
and other forward-looking statements (within the meaning of Section
27A of the Securities Act of 1933 or Section 21E of the Securities
Exchange Act of 1934, each as amended) that are based on
management’s current views and assumptions, and are conditioned
upon and also involve known and unknown risks and uncertainties
that could cause actual results, performance or events to differ
materially from those anticipated by such statements due to, among
other factors:
- changes in global trade policies,
including the adoption and expansion of tariffs and trade barriers,
that could affect the macro-economic environment and adversely
impact the demand for our products;
- uncertain macro-economic and
industry trends (such as inflation and fluctuations in supply
chains), which may impact production capacity and end-market demand
for our products;
- customer demand that differs from
projections;
- the ability to design, manufacture
and sell innovative products in a rapidly changing technological
environment;
- changes in economic, social, public
health, labor, political, or infrastructure conditions in the
locations where we, our customers, or our suppliers operate,
including as a result of macroeconomic or regional events,
geopolitical and military conflicts, social unrest, labor actions,
or terrorist activities;
- unanticipated events or
circumstances, which may impact our ability to execute our plans
and/or meet the objectives of our R&D and manufacturing
programs, which benefit from public funding;
- financial difficulties with any of
our major distributors or significant curtailment of purchases by
key customers;
- the loading, product mix, and
manufacturing performance of our production facilities and/or our
required volume to fulfill capacity reserved with suppliers or
third-party manufacturing providers;
- availability and costs of
equipment, raw materials, utilities, third-party manufacturing
services and technology, or other supplies required by our
operations (including increasing costs resulting from
inflation);
- the functionalities and performance
of our IT systems, which are subject to cybersecurity threats and
which support our critical operational activities including
manufacturing, finance and sales, and any breaches of our IT
systems or those of our customers, suppliers, partners and
providers of third-party licensed technology;
- theft, loss, or misuse of personal
data about our employees, customers, or other third parties, and
breaches of data privacy legislation;
- the impact of intellectual property
(“IP”) claims by our competitors or other third parties, and our
ability to obtain required licenses on reasonable terms and
conditions;
- changes in our overall tax position
as a result of changes in tax rules, new or revised legislation,
the outcome of tax audits or changes in international tax treaties
which may impact our results of operations as well as our ability
to accurately estimate tax credits, benefits, deductions and
provisions and to realize deferred tax assets;
- variations in the foreign exchange
markets and, more particularly, the U.S. dollar exchange rate as
compared to the Euro and the other major currencies we use for our
operations;
- the outcome of ongoing litigation
as well as the impact of any new litigation to which we may become
a defendant;
- product liability or warranty
claims, claims based on epidemic or delivery failure, or other
claims relating to our products, or recalls by our customers for
products containing our parts;
- natural events such as severe
weather, earthquakes, tsunamis, volcano eruptions or other acts of
nature, the effects of climate change, health risks and epidemics
or pandemics in locations where we, our customers or our suppliers
operate;
- increased regulation and
initiatives in our industry, including those concerning climate
change and sustainability matters and our goal to become carbon
neutral by 2027 on scope 1 and 2 and partially scope 3;
- epidemics or pandemics, which may
negatively impact the global economy in a significant manner for an
extended period of time, and could also materially adversely affect
our business and operating results;
- industry changes resulting from
vertical and horizontal consolidation among our suppliers,
competitors, and customers; and
- the ability to successfully ramp up
new programs that could be impacted by factors beyond our control,
including the availability of critical third-party components and
performance of subcontractors in line with our expectations.
Such forward-looking statements are subject to
various risks and uncertainties, which may cause actual results and
performance of our business to differ materially and adversely from
the forward-looking statements. Certain forward-looking statements
can be identified by the use of forward-looking terminology, such
as “believes”, “expects”, “may”, “are expected to”, “should”,
“would be”, “seeks” or “anticipates” or similar expressions or the
negative thereof or other variations thereof or comparable
terminology, or by discussions of strategy, plans or intentions.
Some of these risk factors are set forth and are discussed in more
detail in “Item 3. Key Information — Risk Factors” included in our
Annual Report on Form 20-F for the year ended December 31, 2023 as
filed with the Securities and Exchange Commission (“SEC”) on
February 22, 2024. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described
in this press release as anticipated, believed or expected. We do
not intend, and do not assume any obligation, to update any
industry information or forward-looking statements set forth in
this release to reflect subsequent events or circumstances.
Unfavorable changes in the above or other
factors listed under “Item 3. Key Information — Risk Factors” from
time to time in our Securities and Exchange Commission (“SEC”)
filings, could have a material adverse effect on our business
and/or financial condition.
About STMicroelectronics
At ST, we are over 50,000 creators and makers of
semiconductor technologies mastering the semiconductor supply chain
with state-of-the-art manufacturing facilities. An integrated
device manufacturer, we work with more than 200,000 customers and
thousands of partners to design and build products, solutions, and
ecosystems that address their challenges and opportunities, and the
need to support a more sustainable world. Our technologies enable
smarter mobility, more efficient power and energy management, and
the wide-scale deployment of cloud-connected autonomous things. We
are committed to achieving our goal to become carbon neutral on
scope 1 and 2 and partially scope 3 by 2027. Further information
can be found at www.st.com.
For further information, please contact:
INVESTOR RELATIONS:Céline 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 |
|
|
March 30, |
April 1, |
|
|
2024 |
2023 |
|
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
Net sales |
3,444 |
4,241 |
|
Other revenues |
21 |
6 |
|
NET REVENUES |
3,465 |
4,247 |
|
Cost of sales |
(2,021) |
(2,137) |
|
GROSS PROFIT |
1,444 |
2,110 |
|
Selling, general and administrative |
(425) |
(395) |
|
Research and development |
(528) |
(505) |
|
Other income and expenses, net |
60 |
(9) |
|
Total operating expenses |
(893) |
(909) |
|
OPERATING INCOME |
551 |
1,201 |
|
Interest income, net |
59 |
37 |
|
Other components of pension benefit costs |
(4) |
(5) |
|
INCOME BEFORE INCOME TAXES AND NONCONTROLLING
INTEREST |
606 |
1,233 |
|
Income tax expense |
(92) |
(187) |
|
NET INCOME |
514 |
1,046 |
|
Net income attributable to noncontrolling interest |
(1) |
(2) |
|
NET INCOME ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
513 |
1,044 |
|
|
|
|
|
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
0.57 |
1.16 |
|
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
0.54 |
1.10 |
|
|
|
|
|
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING
DILUTED EPS |
942.3 |
945.6 |
|
|
|
|
|
|
|
|
|
STMicroelectronics N.V. |
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
|
|
As at |
March 30, |
December 31, |
April 1, |
In millions of U.S. dollars |
2024 |
2023 |
2023 |
|
(Unaudited) |
(Audited) |
(Unaudited) |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
3,133 |
3,222 |
3,572 |
Short-term deposits |
1,226 |
1,226 |
106 |
Marketable securities |
1,880 |
1,635 |
841 |
Trade accounts receivable, net |
1,787 |
1,731 |
2,013 |
Inventories |
2,685 |
2,698 |
2,870 |
Other current assets |
1,183 |
1,295 |
962 |
Total current assets |
11,894 |
11,807 |
10,364 |
Goodwill |
298 |
303 |
300 |
Other intangible assets, net |
366 |
367 |
403 |
Property, plant and equipment, net |
10,866 |
10,554 |
8,847 |
Non-current deferred tax assets |
585 |
592 |
582 |
Long-term investments |
22 |
22 |
11 |
Other non-current assets |
942 |
808 |
697 |
|
13,079 |
12,646 |
10,840 |
Total assets |
24,973 |
24,453 |
21,204 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Short-term debt |
238 |
217 |
176 |
Trade accounts payable |
1,642 |
1,856 |
2,095 |
Other payables and accrued liabilities |
1,547 |
1,525 |
1,544 |
Dividends payable to stockholders |
6 |
54 |
6 |
Accrued income tax |
133 |
78 |
193 |
Total current liabilities |
3,566 |
3,730 |
4,014 |
Long-term debt |
2,875 |
2,710 |
2,488 |
Post-employment benefit obligations |
372 |
372 |
337 |
Long-term deferred tax liabilities |
49 |
54 |
55 |
Other long-term liabilities |
912 |
735 |
445 |
|
4,208 |
3,871 |
3,325 |
Total liabilities |
7,774 |
7,601 |
7,339 |
Commitment and contingencies |
|
|
|
Equity |
|
|
|
Parent company stockholders' equity |
|
|
|
Common stock (preferred stock: 540,000,000 shares authorized, not
issued; common stock: Euro 1.04 par value, 1,200,000,000 shares
authorized, 911,281,920 shares issued, 900,848,535 shares
outstanding as of March 30, 2024) |
1,157 |
1,157 |
1,157 |
Additional Paid-in Capital |
2,931 |
2,866 |
2,693 |
Retained earnings |
12,982 |
12,470 |
9,754 |
Accumulated other comprehensive income |
468 |
613 |
546 |
Treasury stock |
(463) |
(377) |
(352) |
Total parent company stockholders' equity |
17,075 |
16,729 |
13,798 |
Noncontrolling interest |
124 |
123 |
67 |
Total equity |
17,199 |
16,852 |
13,865 |
Total liabilities and equity |
24,973 |
24,453 |
21,204 |
|
|
|
|
|
|
|
|
STMicroelectronics N.V. |
|
|
|
|
|
|
|
SELECTED CASH FLOW DATA |
|
|
|
|
|
|
|
Cash Flow Data (in US$ millions) |
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
|
Net Cash from operating activities |
859 |
1,480 |
1,320 |
Net Cash used in investing activities |
(1,254) |
(1,610) |
(786) |
Net Cash from (used in) financing activities |
308 |
336 |
(221) |
Net Cash increase (decrease) |
(89) |
211 |
314 |
|
|
|
|
Selected Cash Flow Data (in US$ millions) |
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
|
Depreciation & amortization |
430 |
414 |
368 |
Net payment for Capital expenditures |
(994) |
(798) |
(1,090) |
Dividends paid to stockholders |
(48) |
(60) |
(54) |
Change in inventories, net |
(12) |
219 |
(262) |
|
|
|
|
AppendixSTNew
organization
On January 10, 2024, ST announced a new
organization to deliver enhanced product development innovation and
efficiency, time-to-market as well as customer focus by end market.
This new organization implies a change in segment reporting which
is applied from January 1, 2024.
ST moved from three reportable segments (ADG,
AMS and MDG) to four reportable segments as follows:
- In Analog, Power & Discrete,
MEMS and Sensors (APMS) Product Group:
- Analog products, MEMS and Sensors
(AM&S) segment, comprised of ST analog products, MEMS sensors
and actuators, and optical sensing solutions.
- Power and Discrete products
(P&D) segment comprised of discrete and power transistor
products.
In this Press Release, “Analog” refers to ST
analog products, “MEMS” to MEMS sensors and actuators and “Imaging”
to optical sensing solutions.
- In Microcontrollers, Digital ICs
and RF products (MDRF) Product Group:
- Microcontrollers (MCU) segment,
comprised of general-purpose and automotive microcontrollers,
microprocessors and connected security products (including
EEPROM).
- Digital ICs and RF Products
(D&RF) segment, comprised of automotive ADAS, infotainment, RF
and communications products.
In this Press release, “Auto MCU” refers to
Automotive microcontrollers and microprocessors, “GP MCU” to
general purpose microcontrollers and microprocessors, “Connected
Security” to connected security products (including EEPROM), “ADAS”
to automotive ADAS and infotainment, “RF Communications” to RF and
communications products.
Prior quarters comparative information has been
adjusted accordingly.
(Appendix –
continued)STSupplemental
Financial Information
|
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Net Revenues By Market Channel
(%) |
|
|
|
|
|
Total OEM |
70% |
70% |
67% |
64% |
64% |
Distribution |
30% |
30% |
33% |
36% |
36% |
|
|
|
|
|
|
€/$ Effective Rate |
1.09 |
1.08 |
1.09 |
1.08 |
1.06 |
|
|
|
|
|
|
Reportable Segment Data (US$ m) |
|
|
|
|
|
Analog products, MEMS and Sensors (AM&S) segment |
|
|
|
|
|
- Net Revenues |
1,217 |
1,418 |
1,367 |
1,293 |
1,400 |
- Operating Income |
185 |
300 |
298 |
259 |
334 |
Power and Discrete products (P&D) segment |
|
|
|
|
|
- Net Revenues |
820 |
965 |
989 |
989 |
909 |
- Operating Income |
138 |
245 |
262 |
262 |
236 |
Subtotal: Analog, Power & Discrete, MEMS and Sensors
(APMS) Product Group |
|
|
|
|
|
- Net Revenues |
2,037 |
2,383 |
2,356 |
2,282 |
2,309 |
- Operating Income |
323 |
545 |
560 |
521 |
570 |
Microcontrollers (MCU) segment |
|
|
|
|
|
- Net Revenues |
950 |
1,272 |
1,466 |
1,482 |
1,448 |
- Operating Income |
185 |
378 |
534 |
551 |
555 |
Digital ICs and RF Products (D&RF) segment |
|
|
|
|
|
- Net Revenues |
475 |
623 |
605 |
558 |
486 |
- Operating Income |
150 |
223 |
226 |
196 |
165 |
Subtotal: Microcontrollers, Digital ICs
and RF products (MDRF) Product Group |
|
|
|
|
|
- Net Revenues |
1,425 |
1,895 |
2,071 |
2,040 |
1,934 |
- Operating Income |
335 |
601 |
760 |
747 |
720 |
Others (a) |
|
|
|
|
|
- Net Revenues |
3 |
4 |
4 |
4 |
4 |
- Operating Income (Loss) |
(107) |
(123) |
(79) |
(122) |
(89) |
Total |
|
|
|
|
|
- Net Revenues |
3,465 |
4,282 |
4,431 |
4,326 |
4,247 |
- Operating Income |
551 |
1,023 |
1,241 |
1,146 |
1,201 |
(a) Net revenues of Others include revenues from
sales assembly services and other revenues. Operating income (loss)
of Others include items such as unused capacity charges, including
incidents leading to power outage, impairment and restructuring
charges, management reorganization costs, start-up and phase out
costs, 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 reportable segments, as
well as operating earnings of other products. Others includes:
(US$ m) |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Unused capacity charges |
63 |
57 |
46 |
15 |
1 |
(Appendix –
continued)STSupplemental 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.
ST believes that these non-U.S. GAAP financial
measures provide useful information for investors and management
because they offer, when read in conjunction with ST’s U.S. GAAP
financials, (i) the ability to make more meaningful
period-to-period comparisons of ST’s on-going operating results,
(ii) the ability to better identify trends in ST’s business
and perform related trend analysis, and (iii) to facilitate a
comparison of ST’s results of operations against investor and
analyst financial models and valuations, which may exclude these
items.
Net Financial Position and Adjusted Net
Financial Position (non-U.S. GAAP measures)
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. Starting Q4 2023, ST also presents adjusted net
financial position as a non-U.S. GAAP measure, to take into
consideration the effect on total liquidity of advances received on
capital grants for which capital expenditures have not been
incurred yet. Prior periods are not impacted.
ST believes its Net Financial Position and
Adjusted Net Financial Position provide useful information for
investors and management because they give 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
definitions of Net Financial Position and Adjusted Net Financial
Position may differ from definitions used by other companies, and
therefore, comparability may be limited.
(US$ m) |
Mar 30 2024 |
Dec 31 2023 |
Sep 30 2023 |
July 1 2023 |
Apr 1 2023 |
Cash and cash equivalents |
3,133 |
3,222 |
3,011 |
3,111 |
3,572 |
Short term deposits |
1,226 |
1,226 |
506 |
106 |
106 |
Marketable securities |
1,880 |
1,635 |
1,537 |
1,346 |
841 |
Total liquidity |
6,239 |
6,083 |
5,054 |
4,563 |
4,519 |
Short-term debt |
(238) |
(217) |
(173) |
(176) |
(176) |
Long-term debt (a) |
(2,875) |
(2,710) |
(2,418) |
(2,473) |
(2,488) |
Total financial debt |
(3,113) |
(2,927) |
(2,591) |
(2,649) |
(2,664) |
Net Financial Position |
3,126 |
3,156 |
2,463 |
1,914 |
1,855 |
Advances from capital grants |
(351) |
(152) |
- |
- |
- |
Adjusted Net Financial Position |
2,775 |
3,004 |
2,463 |
1,914 |
1,855 |
(a) Long-term debt contains standard conditions but
does not impose minimum financial ratios. Committed credit
facilities for $693 million equivalent, are currently undrawn.
(Appendix – continued)
Net Capex and Free Cash Flow (non-U.S.
GAAP measures)
Starting Q1 2024, ST presents Net Capex as a
non-U.S. GAAP measure, which is reported as part of our Free Cash
Flow (non-US GAAP measure), to take into consideration the effect
of advances from capital grants received on prior periods allocated
to property, plant and equipment in the reporting period.
Net Capex, a non-U.S. GAAP measure, is defined
as (i) Payment for purchase of tangible assets as reported plus
(ii) Proceeds from sale of tangible assets as reported plus (iii)
Proceeds from capital grants and other contributions as reported
plus (iv) Advances from capital grants allocated to property, plant
and equipment.
ST believes Net Capex provides useful
information for investors and management because annual capital
expenditures budget includes the effect of capital grants. Our
definition of Net Capex may differ from definitions used by other
companies.
(US$ m) |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Payment for purchase of tangible assets, as reported |
(1,145) |
(1,076) |
(1,158) |
(1,111) |
(1,095) |
Proceeds from sale of tangible assets, as reported |
2 |
- |
1 |
5 |
1 |
Proceeds from capital grants and other contributions, as
reported |
149 |
278 |
5 |
34 |
4 |
Advances from capital grants allocated to property, plant and
equipment |
27 |
- |
- |
- |
- |
Net Capex |
(967) |
(798) |
(1,152) |
(1,072) |
(1,090) |
Free Cash Flow, which is a non-U.S. GAAP
measure, is defined as (i) net cash from operating activities plus
(ii) Net Capex plus (iii) payment for purchase (and proceeds from
sale) of intangible and financial assets and (iv) net cash paid for
business acquisitions, if any.
ST believes 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 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 and by excluding the advances from
capital grants received on prior periods allocated to property,
plant and equipment. Our definition of Free Cash Flow may differ
from definitions used by other companies.
(US$ m) |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Net cash from operating activities |
859 |
1,480 |
1,881 |
1,311 |
1,320 |
Net Capex |
(967) |
(798) |
(1,152) |
(1,072) |
(1,090) |
Payment for purchase of intangible assets, net of proceeds from
sale |
(26) |
(28) |
(22) |
(22) |
(24) |
Payment for purchase of financial assets, net of proceeds from
sale |
- |
(2) |
- |
(8) |
- |
Free Cash Flow |
(134) |
652 |
707 |
209 |
206 |
1 Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP
and information explaining why the Company believes these measures
are important.
- C3254C - Q124 Earnings PR
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