STMicroelectronics Reports 2019 Third Quarter Financial Results
PR No: C2923C
STMicroelectronics Reports 2019 Third
Quarter Financial Results
- Q3 net revenues $2.55 billion; gross margin 37.9%;
operating margin 13.1%; net income $302 million
- YTD net revenues $6.80 billion; gross margin 38.4%;
operating margin 10.9%; net income $640 million
- Business outlook at mid-point: Q4 net revenues up about
5.0% Q/Q and gross margin of about 38.2%
Geneva, October 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 third
quarter ended September 28, 2019. This press release also contains
non-U.S. GAAP measures (see Appendix for additional
information).
ST reported third quarter net revenues of $2.55
billion, gross margin of 37.9%, operating margin of 13.1%, and net
income of $302 million or $0.34 diluted earnings per share.
Jean-Marc Chery, STMicroelectronics President
& CEO, commented:
- “Third quarter net revenues grew 17.5% sequentially,
above the mid-point of our guidance of 15.3%, driven by engaged
customer programs and new products in, as expected, a soft legacy
automotive and industrial market.
- “Our third quarter operating margin was 13.1% and we
returned to positive free cash flow while investing in key programs
for our growth over the mid-term.
- “ST’s fourth quarter outlook, at the mid-point, is for
net revenues to grow sequentially about 5.0%, translating into
year-over-year growth of about 1.2%; gross margin is expected to be
about 38.2%, including about 120 basis points of unsaturation
charges.
- “For the full year 2019, we expect net revenues at the
mid-point to be about $9.48 billion, accompanied by a double-digit
operating margin performance.”
Quarterly Financial Summary (U.S.
GAAP)
(US$ m, except per share data) |
Q3 2019 |
Q2 2019 |
Q3 2018 |
Q/Q |
Y/Y |
Net Revenues |
$2,553 |
$2,173 |
$2,522 |
17.5% |
1.2% |
Gross Profit |
$967 |
$830 |
$1,003 |
16.4% |
(3.6) % |
Gross Margin |
37.9% |
38.2% |
39.8% |
(30) bps |
(190) bps |
Operating Income |
$336 |
$196 |
$398 |
70.8% |
(15.6) % |
Operating Margin |
13.1% |
9.0% |
15.8% |
410 bps |
(270) bps |
Net Income |
$302 |
$160 |
$369 |
88.5% |
(18.3) % |
Diluted Earnings Per Share |
$0.34 |
$0.18 |
$0.41 |
88.9% |
(17.1) % |
Third Quarter 2019 Summary Review
Net Revenues By Product Group (US$ m) |
Q3 2019 |
Q2 2019 |
Q3 2018 |
Q/Q |
Y/Y |
Automotive and Discrete Group (ADG) |
$894 |
$885 |
$901 |
1.1% |
(0.8)% |
Analog, MEMS and Sensors Group (AMS) |
$968 |
$694 |
$899 |
39.4% |
7.7% |
Microcontrollers and Digital ICs Group (MDG) |
$688 |
$591 |
$719 |
16.3% |
(4.3)% |
Others |
$3 |
$3 |
$3 |
- |
- |
Total Net Revenues |
$2,553 |
$2,173 |
$2,522 |
17.5% |
1.2% |
Net revenues totaled $2.55
billion. On a sequential basis revenues increased 17.5%, 220 basis
points better than the mid-point of the Company’s guidance. On a
year-over-year basis, third quarter net revenues increased 1.2% as
the Company recorded higher sales in Imaging, Analog, Power
Discrete and MEMS largely offset by lower Digital ICs, Automotive
and Microcontrollers sales. On a year-over-year basis, sales to
OEMs increased 7.2%, while Distribution decreased 11.6%.
Gross profit totaled $967
million, representing a year-over-year decrease of 3.6%.
Gross margin of 37.9% decreased 190 basis points
year-over-year, mainly impacted by price pressure and unsaturation
charges. Third quarter gross margin was 40 basis points higher than
the mid-point of the Company’s guidance, mainly due to a lower
level of unsaturation charges. Third quarter gross margin includes
about 110 basis points of unsaturation charges.
Operating income decreased
15.6% to $336 million, compared to $398 million in the year-ago
quarter. The Company’s operating margin decreased
270 basis points on a year-over-year basis to 13.1% of net
revenues, compared to 15.8% in the 2018 third quarter.
By product group, compared with
the year-ago quarter:
Automotive and Discrete Group (ADG):
- Revenue increased in Power Discrete and decreased in
Automotive.
- Operating profit decreased by 34.5% to $76 million. Operating
margin was 8.5% compared to 12.8%.
Analog, MEMS and Sensors Group (AMS):
- Revenue increased in Imaging, Analog and MEMS.
- Operating profit increased by 26.1% to $198 million. Operating
margin was 20.5% compared to 17.5%.
Microcontrollers and Digital ICs Group
(MDG):
- Revenue decreased in both Microcontrollers and Digital
ICs.
- Operating profit decreased by 9.2% to $108 million. Operating
margin was 15.7% compared to 16.6%.
Net income and diluted
earnings per share decreased to $302 million and $0.34,
respectively, compared to $369 million and $0.41, respectively, in
the year-ago quarter.
Cash Flow and Balance Sheet Highlights
|
|
|
|
Trailing 12 Months |
(US$ m) |
Q3 2019 |
Q2 2019 |
Q3 2018 |
Q3 2019 |
Q3 2018(1) |
TTM Change |
Net cash from operating activities |
$429 |
$324 |
$373 |
$1,749 |
$1,775 |
(1.5)% |
Free cash flow (non-U.S. GAAP) |
$170 |
$(67) |
$114 |
$399 |
$314 |
27.1% |
(1) Q3 2018 trailing 12 months includes
2017 amounts that have been adjusted to reflect the
reclassification as operating cash flows of the implied interest
paid in the settlement of our convertible bonds.
Capital expenditure payments, net of proceeds
from sales, were $244 million in the third quarter and $937 million
for the year-to-date period. In the year-ago quarter, capital
expenditures, net, were $242 million.
Inventory at the end of the quarter was $1.79
billion, down from $1.89 billion in the prior quarter. Day sales of
inventory at quarter-end was 100 days compared to 129 days in the
prior quarter.
Free cash flow (non-U.S. GAAP) was $170 million
in the third quarter and $36 million for the year-to-date
period.
In the third quarter, the Company paid cash
dividends totaling $54 million and executed a $62 million share
buy-back as part of its ongoing program.
ST’s net financial position (non-U.S. GAAP) was
$348 million at September 28, 2019 compared to $308 million at June
29, 2019 and reflected total liquidity of $2.54 billion and total
financial debt of $2.19 billion.
Business Outlook
The Company’s guidance for the 2019 fourth
quarter is:
- Net revenues are expected to increase about 5.0% sequentially,
plus or minus 350 basis points;
- Gross margin of about 38.2%, plus or minus 200 basis
points;
- This outlook is based on an assumed effective currency exchange
rate of approximately $1.12 = €1.00 for the 2019 fourth quarter and
includes the impact of existing hedging contracts.
- The fourth quarter will close on December 31, 2019.
Conference Call and Webcast Information
STMicroelectronics will conduct a conference
call with analysts, investors and reporters to discuss its third
quarter 2019 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 8, 2019.
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.
See the Appendix of this press release for a
reconciliation of the Company’s non-U.S. GAAP financial measures to
their corresponding U.S. GAAP financial measures. To compensate for
these limitations, the supplemental non-U.S. GAAP financial
information should not be read in isolation, but only in
conjunction with the Company’s consolidated financial statements
prepared in accordance with U.S. GAAP.
Forward-looking Information
Some of the statements contained in this release
that are not historical facts are statements of future expectations
and other forward-looking statements (within the meaning of Section
27A of the Securities Act of 1933 or Section 21E of the Securities
Exchange Act of 1934, each as amended) that are based on
management’s current views and assumptions, and are conditioned
upon and also involve known and unknown risks and uncertainties
that could cause actual results, performance, or events to differ
materially from those anticipated by such statements, due to, among
other factors:
- 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;
- The Brexit vote and the perceptions as to the impact of the
withdrawal of the U.K. may adversely affect business activity,
political stability and economic conditions in the U.K., the
Eurozone, the EU and elsewhere. While we do not have material
operations in the U.K. and have not experienced any material impact
from Brexit on our underlying business to date, we cannot predict
its future implications;
- 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, labor, political, or
infrastructure conditions in the locations where we, our customers,
or our suppliers operate, including as a result of macro-economic
or regional events, military conflicts, social unrest, labor
actions, or terrorist activities;
- 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;
- 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, health risks and
epidemics in locations where we, our customers or our suppliers
operate;
- 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, 2018, as filed with the SEC on February 28,
2019. 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
ST is a global semiconductor leader delivering
intelligent and energy-efficient products and solutions that power
the electronics at the heart of everyday life. ST’s products are
found everywhere today, and together with our customers, we are
enabling smarter driving and smarter factories, cities and homes,
along with the next generation of mobile and Internet of Things
devices.
By getting more from technology to get more from
life, ST stands for life.augmented.
In 2018, the Company’s net revenues were $9.66
billion, serving more than 100,000 customers worldwide.
Further information can be found at
www.st.com.
For further information, please contact:
INVESTOR RELATIONS:Céline BerthierGroup VP,
Investor RelationsTel: +41 22 929 58 12celine.berthier@st.com
MEDIA RELATIONS:Alexis
Breton
Corporate External CommunicationsSTMicroelectronics Tel: +
33 6 59 16 79 08
alexis.breton@st.com
STMicroelectronics N.V. |
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
|
(in millions of U.S. dollars, except per share data
($)) |
|
|
|
|
|
|
Three months ended |
|
September 28, |
September 29, |
|
2019 |
2018 |
|
(Unaudited) |
(Unaudited) |
|
|
|
Net sales |
2,547 |
2,515 |
Other revenues |
6 |
7 |
NET REVENUES |
2,553 |
2,522 |
Cost of sales |
(1,586) |
(1,519) |
GROSS PROFIT |
967 |
1,003 |
Selling, general and administrative |
(267) |
(268) |
Research and development |
(362) |
(348) |
Other income and expenses, net |
(2) |
11 |
Impairment, restructuring charges and other related closure
costs |
- |
- |
Total operating expenses |
(631) |
(605) |
OPERATING INCOME |
336 |
398 |
Interest expense, net |
(1) |
(2) |
Other components of pension benefit costs |
(5) |
(3) |
Income (loss) on equity-method investments |
- |
2 |
INCOME BEFORE INCOME TAXES AND NONCONTROLLING
INTEREST |
330 |
395 |
Income tax expense |
(28) |
(24) |
NET INCOME |
302 |
371 |
Net income attributable to noncontrolling interest |
- |
(2) |
NET INCOME ATTRIBUTABLE TO PARENT COMPANY |
302 |
369 |
|
|
|
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
0.34 |
0.41 |
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
0.34 |
0.41 |
|
|
|
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING
DILUTED EPS |
900.1 |
908.0 |
STMicroelectronics N.V. |
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
|
(in millions of U.S. dollars, except per share data
($)) |
|
|
|
|
|
|
Nine months ended |
|
September 28, |
September 29, |
|
2019 |
2018 |
|
(Unaudited) |
(Unaudited) |
|
|
|
Net sales |
6,779 |
6,978 |
Other revenues |
23 |
38 |
NET REVENUES |
6,802 |
7,016 |
Cost of sales |
(4,187) |
(4,214) |
GROSS PROFIT |
2,615 |
2,802 |
Selling, general and administrative |
(808) |
(810) |
Research and development |
(1,111) |
(1,054) |
Other income and expenses, net |
49 |
38 |
Impairment, restructuring charges and other related closure
costs |
(2) |
(20) |
Total operating expenses |
(1,872) |
(1,846) |
OPERATING INCOME |
743 |
956 |
Interest income (expense), net |
2 |
(8) |
Other components of pension benefit costs |
(12) |
(9) |
Income (loss) on equity-method investments |
1 |
3 |
INCOME BEFORE INCOME TAXES AND NONCONTROLLING
INTEREST |
734 |
942 |
Income tax expense |
(93) |
(68) |
NET INCOME |
641 |
874 |
Net income attributable to noncontrolling interest |
(1) |
(5) |
NET INCOME ATTRIBUTABLE TO PARENT COMPANY |
640 |
869 |
|
|
|
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
0.71 |
0.97 |
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
0.71 |
0.95 |
|
|
|
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING
DILUTED EPS |
901.6 |
912.8 |
|
|
|
|
STMicroelectronics N.V. |
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
|
|
As at |
September 28, |
June 29, |
December 31, |
In millions of U.S. dollars |
2019 |
2019 |
2018 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
2,345 |
2,119 |
2,266 |
Restricted cash |
60 |
60 |
- |
Marketable securities |
133 |
333 |
330 |
Trade accounts receivable, net |
1,388 |
1,162 |
1,277 |
Inventories |
1,785 |
1,890 |
1,562 |
Other current assets |
415 |
437 |
419 |
Total current assets |
6,126 |
6,001 |
5,854 |
Goodwill |
161 |
163 |
121 |
Other intangible assets, net |
291 |
296 |
212 |
Property, plant and equipment, net |
3,897 |
3,930 |
3,495 |
Non-current deferred tax assets |
684 |
675 |
672 |
Long-term investments |
62 |
62 |
61 |
Other non-current assets |
401 |
390 |
452 |
|
5,496 |
5,516 |
5,013 |
Total assets |
11,622 |
11,517 |
10,867 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Short-term debt |
171 |
174 |
146 |
Trade accounts payable |
915 |
895 |
981 |
Other payables and accrued liabilities |
857 |
885 |
874 |
Dividends payable to stockholders |
112 |
166 |
60 |
Accrued income tax |
77 |
48 |
59 |
Total current liabilities |
2,132 |
2,168 |
2,120 |
Long-term debt |
2,019 |
2,030 |
1,764 |
Post-employment benefit obligations |
386 |
389 |
385 |
Long-term deferred tax liabilities |
18 |
12 |
14 |
Other long-term liabilities |
315 |
338 |
160 |
|
2,738 |
2,769 |
2,323 |
Total liabilities |
4,870 |
4,937 |
4,443 |
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, 911,181,920 shares issued, 894,103,449 shares
outstanding) |
1,157 |
1,157 |
1,157 |
Capital surplus |
2,950 |
2,915 |
2,843 |
Retained earnings |
2,355 |
2,065 |
1,991 |
Accumulated other comprehensive income |
422 |
525 |
509 |
Treasury stock |
(266) |
(216) |
(141) |
Total parent company stockholders' equity |
6,618 |
6,446 |
6,359 |
Noncontrolling interest |
134 |
134 |
65 |
Total equity |
6,752 |
6,580 |
6,424 |
Total liabilities and equity |
11,622 |
11,517 |
10,867 |
|
|
|
|
|
|
|
|
STMicroelectronics N.V. |
|
|
|
|
|
|
|
SELECTED CASH FLOW DATA |
|
|
|
|
|
|
|
Cash Flow Data (in US$ millions) |
Q3 2019 |
Q2 2019 |
Q3 2018 |
|
|
|
|
Net Cash from operating activities |
429 |
324 |
373 |
Net Cash used in investing activities |
(59) |
(391) |
(152) |
Net Cash used in financing activities |
(129) |
(123) |
(68) |
Net Cash increase (decrease) |
226 |
(188) |
152 |
|
|
|
|
Selected Cash Flow Data (in US$ millions) |
Q3 2019 |
Q2 2019 |
Q3 2018 |
|
|
|
|
Depreciation & amortization |
216 |
212 |
201 |
Net payment for Capital expenditures |
(244) |
(372) |
(242) |
Dividends paid to stockholders |
(54) |
(53) |
(54) |
Change in inventories, net |
77 |
(116) |
(31) |
|
|
|
|
AppendixSTMicroelectronicsSupplemental
Financial Information
|
Q32019 |
Q22019 |
Q1 2019 |
Q4 2018 |
Q3 2018 |
Net Revenues By Market Channel (%) |
|
|
|
|
|
Total OEM |
72% |
70% |
66% |
69% |
68% |
Distribution |
28% |
30% |
34% |
31% |
32% |
|
|
|
|
|
|
€/$ Effective Rate |
1.14 |
1.14 |
1.16 |
1.17 |
1.18 |
|
|
|
|
|
|
Product Group Data (US$ m) |
|
|
|
|
|
Automotive & Discrete Group (ADG) |
|
|
|
|
|
- Net Revenues |
894 |
885 |
903 |
967 |
901 |
- Operating Income |
76 |
73 |
95 |
141 |
116 |
Analog, MEMS & Sensors Group (AMS) |
|
|
|
|
|
- Net Revenues |
968 |
694 |
552 |
988 |
899 |
- Operating Income |
198 |
74 |
43 |
202 |
157 |
Microcontrollers & Digital ICs Group
(MDG) |
|
|
|
|
|
- Net Revenues |
688 |
591 |
617 |
689 |
719 |
- Operating Income |
108 |
45 |
83 |
122 |
119 |
Others (a) |
|
|
|
|
|
- Net Revenues |
3 |
3 |
4 |
4 |
3 |
- Operating Income (Loss) |
(46) |
4 |
(10) |
(22) |
6 |
Total |
|
|
|
|
|
- Net Revenues |
2,553 |
2,173 |
2,076 |
2,648 |
2,522 |
- Operating Income |
336 |
196 |
211 |
443 |
398 |
(a) Net revenues of Others includes revenues from sales
assembly services and other revenue. Operating income (loss) of
Others includes items such as unused capacity charges, impairment,
restructuring charges and other related closure costs, management
reorganization costs, phase out and start-up costs, and other
unallocated expenses such as: strategic or special research and
development programs, certain corporate-level operating expenses,
patent claims and litigations, and other costs that are not
allocated to product groups, as well as operating earnings of other
products. Others includes: |
(US$ m) |
Q3 2019 |
Q2 2019 |
Q1 2019 |
Q4 2018 |
Q3 2018 |
Unused Capacity Charges |
28 |
7 |
1 |
- |
- |
Impairment & Restructuring Charges |
- |
2 |
- |
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.
Non-U.S. GAAP net earnings and earnings per
share (EPS) are used by management to help enhance an understanding
of ongoing operations and to communicate the impact of the excluded
items like impairment, restructuring charges and other related
closure costs attributable to ST and other one-time items, net of
the relevant tax impact.
The Company believes that these non-U.S. GAAP
financial measures provide useful information for investors and
management because they measure the Company’s capacity to generate
profits from its business operations, excluding the effect of
acquisitions and expenses related to the rationalizing of its
activities and sites that it does not consider to be part of its
on-going operating results, thereby offering, when read in
conjunction with the Company’s 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) an easier way to compare the
Company’s results of operations against investor and analyst
financial models and valuations, which usually exclude these
items.
(US$ m, except earnings per share data) |
Q32019 |
Q22019 |
Q1 2019 |
Q4 2018 |
Q3 2018 |
U.S. GAAP Net Earnings |
302 |
160 |
178 |
418 |
369 |
U.S. GAAP Diluted Earnings Per Share |
0.34 |
0.18 |
0.20 |
0.46 |
0.41 |
Impairment & Restructuring |
- |
2 |
- |
2 |
- |
Estimated Income Tax Effect |
- |
- |
- |
- |
- |
Non-U.S. GAAP Net Earnings |
302 |
162 |
178 |
420 |
369 |
Non-U.S. GAAP Diluted Earnings Per Share |
0.34 |
0.18 |
0.20 |
0.46 |
0.41 |
(Appendix – continued)
Net financial position (non-U.S. GAAP
measure): resources (debt), represents the balance 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 borrowings, current portion of
long-term debt and long-term debt, all as reported in our
consolidated balance sheet. 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 position 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 indebtedness.
(US$ m) |
Sep 282019 |
Jun 292019 |
Mar 30 2019 |
Dec 31 2018 |
Sep 292018 |
Cash and cash equivalents |
2,345 |
2,119 |
2,307 |
2,266 |
1,835 |
Restricted Cash |
60 |
60 |
60 |
- |
- |
Short term deposits |
- |
- |
- |
- |
8 |
Marketable securities |
133 |
333 |
331 |
330 |
328 |
Total liquidity |
2,538 |
2,512 |
2,698 |
2,596 |
2,171 |
Short-term debt |
(171) |
(174) |
(173) |
(146) |
(117) |
Long-term debt |
(2,019) |
(2,030) |
(2,015) |
(1,764) |
(1,607) |
Total financial debt |
(2,190) |
(2,204) |
(2,188) |
(1,910) |
(1,724) |
Net financial position |
348 |
308 |
510 |
686 |
447 |
Free cash flow (non-U.S. GAAP
measure) is defined as net cash from operating activities
minus net cash from (used in) investing activities, excluding
payment for purchases (proceeds from matured) marketable securities
and short-term deposits. 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 operating activities. Free cash flow does
not represent total cash flow since it does not include the cash
flows generated by or used in financing activities. In addition,
our definition of free cash flow may differ from definitions used
by other companies.
(US$ m) |
Q32019 |
Q22019 |
Q1 2019 |
Q4 2018 |
Q3 2018 |
Net cash from operating activities |
429 |
324 |
341 |
656 |
373 |
Net cash used in investing activities |
(59) |
(391) |
(408) |
(284) |
(152) |
Payment for purchase and proceeds from matured marketable
securities, and investment in short-term deposits |
(200) |
- |
- |
(9) |
(107) |
Free cash flow |
170 |
(67) |
(67) |
363 |
114 |
- C2923C - ST Q319 Earnings press release
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