PR No: C2893C
STMicroelectronics Reports 2019 First Quarter Financial Results
- Q1: Net revenues $2.08 billion; operating margin 10.2%; net income $178 million
- Cash dividend of $0.24 per common share payable in equal quarterly installments proposed to the 2019 Annual General Meeting of Shareholders
- Q2 business outlook at mid-point: net revenues up about 2.4% Q/Q and gross margin of about 38.5%
Geneva, April 24, 2019 - STMicroelectronics (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, 2019. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
ST reported first quarter net revenues of $2.08 billion, gross margin of 39.4%, operating margin of 10.2%, and net income of $178 million or $0.20 diluted earnings per share.
Jean-Marc Chery, STMicroelectronics President & CEO, commented:
- "In the first quarter of 2019, revenues and gross margin performed as anticipated, amid softened market dynamics. We maintained a solid level of profitability, with operating margin above 10% and net income of $178 million.
- "Looking at the second quarter, we plan to return to sequential revenue growth. Our second quarter outlook, at the mid-point, is for net revenues to increase about 2.4%; gross margin is expected to be about 38.5%.
- "For the full year 2019, we expect net revenues to be in the range of about $9.45 to $9.85 billion. We therefore plan for strong sequential growth in the second half of the year compared with the first half, across the Industrial, Automotive and Personal Electronics end markets. Our revenue expectation is taking into account engaged customer programs, new product introductions, and assumes improving market conditions.
- "We are moderating our investment plans, with our 2019 CAPEX plan now $1.1 - $1.2 billion, from $1.2 - $1.3 billion initially.
- "Our objectives in 2019 are to outperform our served market and to deliver sustainable profitability."
Quarterly Financial Summary (U.S. GAAP)
| (US$ m, except per share data) | Q1 2019 | Q4 2018 | Q1 2018 | Q/Q | Y/Y |
| Net Revenues | $2,076 | $2,648 | $2,226 | -21.6% | -6.7% |
| Gross Profit | $818 | $1,059 | $888 | -22.8% | -7.9% |
| Gross Margin | 39.4% | 40.0% | 39.9% | -60 bps | -50 bps |
| Operating Income | $211 | $443 | $269 | -52.4% | -21.6% |
| Operating Margin | 10.2% | 16.8% | 12.1% | -660 bps | -190 bps |
| Net Income | $178 | $418 | $239 | -57.4% | -25.4% |
| Diluted Earnings Per Share | $0.20 | $0.46 | $0.26 | -56.5% | -23.1% |
First Quarter 2019 Summary Review
| Net Revenues By Product Group (US$ m) | Q1 2019 | Q4 2018 | Q1 2018 | Q/Q | Y/Y |
| Automotive and Discrete Group (ADG) | 903 | 967 | 817 | -6.6% | 10.5% |
| Analog, MEMS and Sensors Group (AMS) | 552 | 988 | 655 | -44.1% | -15.7% |
| Microcontrollers and Digital ICs Group (MDG) | 617 | 689 | 750 | -10.5% | -17.7% |
| Others | 4 | 4 | 4 | - | - |
| Total Net Revenues | 2,076 | 2,648 | 2,226 | -21.6% | -6.7% |
Net revenues totaled $2.08 billion, representing a year-over-year decrease of 6.7%. On a year-over-year basis, the Company recorded lower sales of Microcontrollers / Memories, Analog and Imaging, partially offset by growth in Power Discrete, Automotive, Digital and MEMS. Year-over-year sales to OEMs and Distribution decreased 2.4% and 13.9%, respectively. On a sequential basis, net revenues decreased 21.6%, 90 basis points lower than the mid-point of the Company's guidance. All product group revenues declined on a sequential basis.
Gross profit totaled $818 million, representing a year-over-year decrease of 7.9%. Gross margin of 39.4% decreased 50 basis points year-over-year, mainly impacted by sales price pressure including the currency effect on the top line partially offset by improved product mix and manufacturing efficiency. First quarter gross margin was 40 basis points higher than the mid-point of the Company's guidance.
