ST reported fourth quarter net revenues of $2.65 billion, gross margin of 40.0%, operating margin of 16.8%, and net income of $418 million or $0.46 diluted earnings per share.
The figures were disclosed while the Geneva head-quartered semi-giant lately reported U.S. GAAP financial results for the fourth quarter(Q4) and year ended December 31, 2018.
Jean-Marc Chery, STMicroelectronics President & CEO, commented,
- “ST delivered a solid performance in the fourth quarter, with net revenues and operating income increasing sequentially 5.0% and 11.5%, respectively.
- “Net revenues in 2018 increased by 15.8% year-over-year led by Imaging, Automotive and Power Discrete.
- “2018 has been an important year for ST. In line with the objectives we had set, we achieved significant revenue growth across our product groups, as well as a strong expansion of profitability and cash flow from operations.
- “Our first quarter outlook is for revenues of about $2.1 billion at the mid-point, decreasing year-over-year by about 5.7%. Sequentially, this represents a decrease of about 20.7%, reflecting the combined impact of increased unfavorable dynamics in some of the end markets we serve, on top of normal first quarter seasonality. From a profitability perspective, we expect a gross margin of about 39% at the mid-point.
- “For 2019 our key objectives are to continue outperforming our served market, to balance our end market and application focus and to execute on our strategic technology, R&D and manufacturing programs. Therefore, we expect to invest between $1.2 to $1.3 billion in CAPEX.”
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