Earnings Release • Jul 28, 2009
Earnings Release
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GENEVA, July 28 -- STMicroelectronics (NYSE: STM) reported financial results for the 2009 second quarter and first half ended June 27, 2009.
"ST's second quarter results reflect solid progress across several key fronts," said President and CEO Carlo Bozotti. He then added:
"It is clear that the global recession has negatively impacted our financial results in the first half of 2009, but it has not slowed our efforts to develop leading-edge products. In the second quarter our pace of innovation continued as we brought to the market many next-generation products including analog controllers and power MOSFETs for power management in computer motherboards, high-voltage MDMesh power MOSFETs for switched-mode power supplies, MEMS gyroscopes, and advanced GPS solutions. Additionally, we ramped-up 55nm technology in ICs for set-top-boxes and, in wireless, we shipped in volume TD-SCDMA devices."
(*) Net operating cash flow is a non-U.S. GAAP measure. Please refer to Attachment A for additional information explaining why the Company believes this measure is important and for reconciliation to U.S. GAAP.
ST's net revenues for the second quarter of 2009 total \$1,993 million and include the complete integration of the former Ericsson Mobile Platforms business into ST-Ericsson and \$18 million from the licensing of technology. Net revenues increased 20% sequentially reflecting an increase in demand across ST's served market segments, as well as in all regions, with particular strength in China and Asia Pacific. Net revenues declined in comparison to the year-ago quarter in all market segments except Telecom, and in all regions except Asia Pacific, due to business conditions.
| Net Revenues By Market Segment / Channel (a) (In %) ------------------------------------ |
Q2 2009 ------- |
Q1 2009 ------- |
Q2 2008 ------- |
|---|---|---|---|
| Market Segment / Channel: | |||
| Automotive | 12% | 12% | 16% |
| Computer | -- | -- | -- |
| 13% | 11% | 12% | |
| Consumer | -- | -- | -- |
| 11% | 14% | 14% | |
| Industrial & Other | -- | -- | -- |
| 8% | 8% | 10% | |
| Telecom | - | - | -- |
| 41% | 43% | 29% | |
| -- | -- | -- | |
|---|---|---|---|
| Total OEM | 85% | 88% | 81% |
| -- | -- | -- | |
| Distribution | 15% | 12% | 19% |
| -- | -- | -- |
(a) Sales recorded by ST-Ericsson and consolidated by ST are included in Telecom and Distribution.
On a sequential basis, all market segments posted growth with Computer increasing by 36%, Automotive by 19%, Telecom by 14%, Industrial by 7% and Consumer by 1%. Distribution registered the strongest sequential improvement by 44% reflecting the better alignment of inventory to current demand levels and improving market conditions. In comparison to the year-ago quarter, performance was led by the 17% growth of Telecom driven by the NXP Wireless and ST-Ericsson wireless transactions. All other market segments decreased in the year-ago period with Computer down by 13%, Consumer by 33%, Industrial by 37%, and Automotive by 38%. Distribution decreased 36% reflecting a destocking of the channel and weak industry conditions.
Gross margin in the second quarter of 2009 was 26.1%, in-line with the first quarter of 2009 gross margin of 26.3%. As anticipated, ST's second quarter gross margin was at an extraordinary low level due to significant unused capacity charges, inefficiencies related to manufacturing operations and a negative mix impact driven by the market demand in certain geographies, in particular, China. In comparison to the year-ago period, lower manufacturing efficiencies, volumes and price more than offset the improved contribution of product mix, the positive effects from currency, licensing ST's technology and the inclusion of the wireless transactions.
In the 2009 second quarter, combined SG&A and R&D expenses were \$896 million compared to \$837 million in the prior quarter and \$751 million in the year-ago quarter. As anticipated, combined SG&A and R&D expenses in the second quarter increased sequentially due to the integration of one additional month of the former Ericsson Mobile Platforms business into ST-Ericsson and a higher number of days in the second quarter, but were partially offset by ongoing cost reduction programs.
During the second quarter, the Company's cost realignment initiatives were focused on completing the phase-out of wafer manufacturing operations in Carrollton, Texas, the ongoing reduction in workforce programs and the announced cost reduction actions at ST-Ericsson. In conjunction with these efforts, ST posted second quarter restructuring and impairment charges of \$86 million compared to \$56 million and \$185 million in the first quarter of 2009 and year-ago period, respectively.
The following table provides a breakdown of revenues and operating results by product segment. Given the unusually high amount of unused capacity charges in the first and second quarters of 2009, the charges are reflected in the segment "Others" in the respective quarters.
| Q2 | Q1 | Q2 | ||||
|---|---|---|---|---|---|---|
| Operating | Q2 | 2009 | Q1 | 2009 | Q2 | 2008 |
| Segment | 2009 | Operating | 2009 | Operating | 2008 | Operating |
| (In Million | Net | Income | Net | Income | Net | Income |
| US\$ and %) | Revenues | (Loss) Revenues | (Loss) | Revenues | (Loss) | |
| ---------- | -------- | ------ -------- | ------ | -------- | ------ | |
| ACCI | 722 | (77) | 627 | (35) | 1,101 | 35 |
| --- | --- | --- | --- | ----- | -- | |
| IMS | 595 | (16) | 499 | 12 | 865 | 132 |
| --- | --- | --- | -- | --- | --- | |
|---|---|---|---|---|---|---|
| Wireless (a) | 650 | (126) | 518 | (107) | 410 | 0 |
| --- | ----- | --- | ----- | --- | - | |
| Others (b)(c) | 26 | (209) | 16 | (263) | 15 | (193) |
| TOTAL | -- | ----- | -- | ----- | -- | ----- |
| 1,993 | (428) | 1,660 | (393) | 2,391 | (26) | |
| ----- | ----- | ----- | ----- | ----- | --- |
ACCI's (Automotive/Consumer/Computer/Communication Infrastructure Product Groups) second quarter net revenues increased 15% sequentially to \$722 million. ACCI's second quarter operating loss was \$77 million, compared to a loss of \$35 million in the first quarter period.
IMS' (Industrial and Multisegment Product Sector) second quarter net revenues increased 19% on a sequential basis. IMS registered in the second quarter an operating loss of \$16 million, compared to an operating profit of \$12 million in the first quarter.
Wireless net revenues increased 25% sequentially to \$650 million. For the second quarter of 2009, Wireless net revenues results reflected the complete integration of the former Ericsson Mobile Platforms business into ST-Ericsson. Net sales growth in the second quarter was higher than normal seasonal patterns mainly due to increased demand in China, driven by TD-SCDMA, and in the rest of Asia-Pacific and to the alignment of inventory to demand levels across the handset supply chain.
Wireless operating results in the second quarter of 2009 exclude \$22 million in restructuring charges, as consolidated by ST. Net income attributable to noncontrolling interest of \$109 million, including restructuring charges, mainly related to the ST-Ericsson joint venture, is posted below operating results in the Company's Consolidated Income Statement.
For additional information on ST-Ericsson, see www.stericsson.com
ST's operating-segment losses in the second quarter were mainly due to a negative mix impact driven by the market demand in certain geographies, in particular, China.
In respect to the previously disclosed portfolio of unauthorized asset-backed securities, the Company continues to update its accounting valuations, which results in other-than-temporary impairment charges that will be reversed upon collection of the related award from the Financial Industry Regulatory Authority ordering Credit Suisse LLC (USA) to pay ST an amount of approximately \$406 million plus interest. To collect, the Company is seeking an enforcement order from the Federal Court in the Southern District of New York.
In the second quarter of 2009, ST's loss on equity investments was \$49 million including a non-cash charge of \$37 million that represents ST's proportional share of the loss reported by Numonyx in its first quarter of 2009. As of June 27, 2009, Numonyx held approximately \$480 million in cash on its balance sheet.
For the 2009 second quarter ST reported a net loss of \$318 million, or \$-0.36 per share, compared to a net loss of \$541 million and \$47 million in the prior quarter and year-ago period, respectively.
For the 2009 second quarter, the effective average exchange rate for the Company was approximately \$1.34 to euro 1.00 compared to \$1.33 to euro 1.00 for the 2009 first quarter and \$1.55 to euro 1.00 for the 2008 second quarter.
Net operating cash flow*, excluding M&A transactions, was \$45 million for the second quarter of 2009 compared to \$-139 million in the prior quarter and \$128 million in the year-ago quarter. Capital expenditures were down to \$74 million during the second quarter of 2009, compared to \$89 million in the prior quarter and \$272 million in the year-ago quarter.
Inventory was \$1.45 billion at quarter end, down from \$1.66 billion at March 28, 2009 and \$1.84 billion at December 31, 2008. The decrease in the inventory was attributable to sharply reduced fab loadings and an increase in sales. Inventory turns in the second quarter improved to 4.1 turns compared to 2.9 turns sequentially and 3.8 turns in the year-ago quarter.
At June 27, 2009, ST's cash and cash equivalents, marketable securities (current and non-current), short-term deposits and restricted cash equaled \$2.9 billion. Excluding cash and cash equivalents and marketable securities of \$320 million related to ST-Ericsson, a \$250 million restricted cash deposit as collateral for the Hynix-Numonyx loan and \$170 million of non-current securities the Company's liquidity totals \$2.1 billion. Total debt was \$2.66 billion. ST's net financial position* was net cash of \$205 million compared to a net debt position of \$545 million as of December 31, 2008. Total equity was \$8.67 billion, including noncontrolling interest of \$1.32 billion.
(*) Net operating cash flow and net financial position are non-U.S. GAAP measures. For additional information please refer to Attachment A.
Net revenues for the first half of 2009 decreased 25% over the year-ago period due to weak industry conditions that more than offset the net impact of M&A transactions.
Gross margin was 26.2% of net revenues, compared to 36.5% of net revenues for the 2008 first half, reflecting significantly lower volumes and operating inefficiencies due to weak industry conditions. Net loss, as reported, was \$860 million in the first half of 2009, or \$-0.98 per share, compared to a net loss of \$131 million, or \$-0.15 per share in the first half of 2008.
On a year-over-year basis, the US dollar strengthened by approximately 12% as the effective average exchange rate for the Company was approximately \$1.33 to euro 1.00 for the first half of 2009, compared to \$1.51 to euro 1.00 for the first half of 2008.
| In Million US\$ and % | First Half 2009 --------------- |
First Half 2008 --------------- |
||
|---|---|---|---|---|
| Product Segment --------------- |
Net Revenues -------- |
Operating income (Loss) ------ |
Net Revenues -------- |
Operating income (Loss) ------ |
| ACCI | 1,349 ----- |
(112) ---- |
2,146 ----- |
60 -- |
| IMS | 1,093 | (5) | 1,637 | 227 |
First Half 2009 Revenue and Operating Results by Product Segment
| Wireless | ----- 1,169 |
-- (232) |
----- 758 |
--- (10) |
|---|---|---|---|---|
| FMG (Flash Memories | ----- | ---- | --- | --- |
| Group) | NA | NA | 299 | 16 |
| -- | -- | --- | -- | |
| Others | 42 | (472) | 29 | (407) |
| -- | ---- | -- | ---- | |
| TOTAL | 3,653 | (821) | 4,869 | (114) |
| ----- | ---- | ----- | ---- |
Mr. Bozotti stated, "As we enter the third quarter, we are encouraged as our backlog, including frame orders, is higher than it was when we entered the second quarter of 2009. Based on current booking activity and visibility, we expect to register solid sequential revenue growth in all market segments and geographies. Additionally, we expect our gross margin to increase sequentially due to partially recovered operating efficiencies, an increase in fab utilization to about 75%, still leading to some further reduction in inventory, and an improved product mix. Early booking indicators for the fourth quarter are positive, but the global economic situation is still uncertain and we remain vigilant and prepared to adjust our manufacturing loading to meet changing demand.
"Finally, we are driving down the Company's break-even point through the previously announced one billion dollar savings and productivity plan. This broad-reaching plan encompasses manufacturing, the rationalization of sites, and capturing synergies in wireless. We are in-line with our plan to lower costs by \$750 million in 2009 and expect a majority of those savings to be realized in the second half of 2009."
For the third quarter of 2009, ST expects:
This outlook is based on an assumed effective currency exchange rate of approximately \$1.37 = euro 1.00 for the 2009 third quarter, which reflects an assumed exchange rate (about \$1.41 = euro 1.00) combined with the impact of existing hedging contracts (hedged rate: \$1.33 = euro 1.00) .
ST completed the deconsolidation of its Flash Memory Group (FMG) segment and took an equity interest in Numonyx on March 30, 2008, which is reported under the equity method of valuation with a one quarter lag in reporting.
ST-NXP Wireless, a joint venture initially owned 80% by ST, began operations on August 2, 2008 and was fully consolidated into ST's operating results. On February 1, 2009 and prior to the closing of the merger of ST-NXP Wireless and Ericsson Mobile Platforms to create ST-Ericsson, ST exercised its option to buy out NXP's 20% ownership stake of ST-NXP Wireless.
ST-Ericsson, a joint venture owned 50% by ST, began operations on February 3, 2009 and is consolidated into ST's operating results as of that date. ST-Ericsson is led by a development and marketing company and is consolidated by ST. A separate platform design company providing platform designs mostly to the development and marketing company is accounted for by ST using the equity method.
On May 20, ST announced that all of the proposed resolutions were approved at the Company's Annual General Meeting (AGM), which was held in Amsterdam, the Netherlands, on May 20, 2009.
The main resolutions, proposed by the Supervisory Board, and approved by shareholders were:
• Approval of the Company's 2008 statutory accounts reported in accordance with International Financial Reporting Standards (IFRS);
On June 25, ST announced the publication of the Company's 2008 Corporate Responsibility Report. The report, which covers all of ST's activities and sites in 2008, contains detailed indicators of the Company's performance across the full range of Social, Environmental, Health & Safety, and Corporate Governance issues and reaffirms ST's long-established commitment to serving its stakeholders with integrity, transparency and excellence.
• In computer peripherals, ST gained a design win from a leading hard-disk-drive manufacturer for a next-generation motor-controller IC, manufactured in ST's proprietary BCD process, for mobile applications.
three new families of precision op-amps targeting low-power and portable products with power-saving features, aimed at applications including portable medical equipment, instrumentation and sensor interfaces.
www.st.com/stonline/press/news/latest.htm. All of ST-Ericsson's press releases are available at http://www.stericsson.com/press/press_releases.jsp.
IPAD, MDmesh and SuperMESH are trademarks of STMicroelectronics. All other trademarks or registered trademarks are the property of their respective owners.
This press release contains supplemental non-U.S. GAAP financial information, including adjusted operating income (loss), adjusted net earnings (loss), adjusted net earnings (loss) per share, net operating cash flow and net financial position.
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 by other companies.
See Attachment A 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.
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 in such statements due to, among other factors:
the outcome of ongoing litigation as well as any new litigation to which we may become a defendant;
our ability to successfully integrate the acquisitions we pursue, in particular the successful integration and operation of ST-Ericsson in the current difficult economic environment;
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 forwardlooking statements. Certain forward-looking statements can be identified by the use of forwardlooking terminology, such as "believes," "expects," "may," "are expected to," "will," "will continue," "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, 2008, as filed with the SEC on May 13, 2009. 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.
Unfavorable changes in the above or other factors listed under "Risk Factors" from time to time in our Securities and Exchange Commission ("SEC") filings, including our Form 20-F, could have a material adverse effect on our business and/or financial condition.
The management of STMicroelectronics will conduct a conference call and webcast on July 29, 2009 at 9:00 a.m. U.S. Eastern Time / 3:00 p.m. CET, to discuss its operating performance for the second quarter of 2009.
The conference call and webcast will be available via the Internet by accessing: http://investors.st.com. Those accessing the webcast should go to the Web site at least 15 minutes prior to the call, in order to register, download and install any necessary audio software. The webcast and conference call will be available until August 7, 2009.
STMicroelectronics is a global leader serving customers across the spectrum of electronics applications with innovative semiconductor solutions. ST aims to be the undisputed leader in multimedia convergence and power applications leveraging its vast array of technologies, design expertise and combination of intellectual property portfolio, strategic partnerships and manufacturing strength. In 2008, the Company's net revenues were \$9.84 billion. Further information on ST can be found at www.st.com.
(tables attached)
Readers are cautioned that 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.
Adjusted operating income (loss) is used by our management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items. Adjusted operating income (loss) excludes impairment, restructuring charges and other related closure costs, the impact of purchase accounting (such as in-process R&D costs and inventory step-up charges) and related tax effects.
Adjusted net earnings and earnings per share are used by our management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items. Adjusted earnings exclude impairment, restructuring charges and other related closure costs, the impact of purchase accounting (such as in-process R&D costs and inventory step-up charges), other-thantemporary impairment (OTTI) charges on financial assets, and impairment related to equity investments, net of the relevant tax impact.
The Company believes that these non-GAAP financial measures provide useful information for investors and management because they measure the Company's capacity to generate profitability 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 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 most recent results of operations against investor and analyst financial models.
| Q2 2009 (US\$ millions and | Operating | Net | ||
|---|---|---|---|---|
| cents per share) | Gross | Income | Earnings Corresponding | |
| Profit | (Loss) | (Loss) | EPS | |
| ------ | ------ | ------ | --- | |
| U.S. GAAP | 520 | (428) | (318) | (0.36) |
| Impairment & Restructuring attributable to parent |
||||
| Company's shareholders | 74 | 74 | ||
| Other-Than-Temporary-Impairment | 13 | |||
| Numonyx Impairment | ||||
| Estimated Income Tax Effect | (12) | |||
| Non-U.S GAAP | (354) | (243) | (0.28) | |
| Q2 2009 (US\$ millions and | Operating | Net | ||
|---|---|---|---|---|
| cents per share) | Gross | Income | Earnings Corresponding | |
| Profit | (Loss) | (Loss) | EPS | |
| ------ | ------ | ------ | --- |
| U.S. GAAP | 437 | (393) | (541) | (0.62) |
|---|---|---|---|---|
| Impairment & Restructuring | 56 | 56 | ||
| Other-Than-Temporary-Impairment | 58 | |||
| Numonyx Impairment | 200 | |||
| Estimated Income Tax Effect | (40) | |||
| Non-U.S GAAP | (337) | (267) | (0.31) | |
| Q2 2009 (US\$ millions and | Operating | Net | ||
| cents per share) | Gross | Income | Earnings Corresponding | |
| Profit | (Loss) | (Loss) | EPS | |
| ------ | ------ | ------ | --- | |
| U.S. GAAP | 880 | (26) | (47) | (0.05) |
| Impairment & Restructuring | 185 | 185 | ||
| Other-Than-Temporary-Impairment | 39 | |||
| Estimated Income Tax Effect | (13) | |||
| Non-U.S GAAP | 159 | 164 | 0.18 |
Net operating cash flow is defined as net cash from operating activities minus net cash used in investing activities, excluding payment for purchases of and proceeds from the sale of marketable securities (both current and non-current), short-term deposits and restricted cash. We believe net operating 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. Net operating cash flow is not a U.S. GAAP measure and 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 net operating cash flow may differ from definitions used by other companies.
| Net Operating Cash Flow (in US\$ millions) | Q2 2009 | Q1 2009 | Q2 2008 |
|---|---|---|---|
| Net cash from (used in) operating | ------- | ------- | ------- |
| activities | 156 | (14) | 416 |
| Net cash from (used in) investing | --- | --- | --- |
| activities | 111 | 671 | (128) |
| Payment for purchases of / proceeds from sale of marketable securities, short-term |
--- | --- | ---- |
| deposits and restricted cash, net | (251) ---- |
349 --- |
(160) ---- |
| Net operating cash flow | 16 | 1,006 | 128 |
| Net operating cash flow (ex M&A) | -- 45 |
----- (139) |
--- 128 |
| -- | ---- | --- |
Net financial position: resources (debt), represents the balance between our total financial resources and our total financial debt. Our total financial resources include cash and cash equivalents, current and non-current marketable securities, short-term deposits and restricted cash, and our total financial debt include bank overdrafts, the current portion of long-term debt and long-term debt, all as represented in our consolidated balance sheet. We believe our net financial position provides useful
information for investors 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, cash equivalents and marketable securities and the total level of our financial indebtedness. Net financial position is not a U.S. GAAP measure.
| Net Financial Position (in US \$millions) Q2 2009 | ------- | Q1 2009 ------- |
Q2 2008 ------- |
|---|---|---|---|
| Cash and cash equivalents, net of bank | 1,685 | 1,477 | 2,136 |
| overdrafts | ----- | ----- | ----- |
| Marketable securities, current | 759 | 988 | 898 |
| Restricted cash | --- | --- | --- |
| 250 | 250 | 250 | |
| Marketable securities, non-current | --- | --- | --- |
| 170 | 184 | 300 | |
| Total financial resources | --- | --- | --- |
| 2,864 | 2,899 | 3,584 | |
| Current portion of long-term debt | ----- | ----- | ----- |
| (174) | (159) | (153) | |
| Long-term debt | ---- | ---- | ---- |
| (2,485) | (2,486) | (2,313) | |
| Total financial debt | ------- | ------- | ------- |
| (2,659) | (2,645) | (2,466) | |
| Net financial position | ------- | ------- | ------- |
| 205 | 254 | 1,118 | |
| --- | --- | ----- |
STMicroelectronics N.V. Consolidated Statements of Income (in million of U.S. dollars, except per share data (\$))
| Three Months Ended ------------------ |
||||
|---|---|---|---|---|
| (Unaudited) (Unaudited) | ||||
| June 27, 2009 ---- |
----------- ----------- June 28, 2008 ---- |
|||
| Net sales Other revenues |
1,970 23 -- |
2,379 12 -- |
||
| NET REVENUES Cost of sales |
1,993 (1,473) |
2,391 (1,511) |
||
| GROSS PROFIT Selling, general and administrative Research and development Other income and expenses, net |
------ 520 (286) (610) 34 |
------ 880 (281) (470) 30 |
||
| Impairment, restructuring charges and other related closure costs |
(86) --- |
(185) ---- |
||
| Total Operating Expenses | (948) ---- |
(906) ---- |
||
| OPERATING LOSS | (428) | (26) |
| (13) | (39) |
|---|---|
| 1 | 19 |
| (49) | (5) -- |
| (489) | (51) |
| 62 | 5 |
| (427) | - (46) |
| 109 | (1) -- |
| (318) | (47) === |
| (0.36) | (0.05) |
| (0.36) | (0.05) |
| 876.6 | 900.5 |
| --- -- --- ==== |
STMicroelectronics N.V.
Consolidated Statements of Income
(in million of U.S. dollars, except per
share data ($))
| Six Months Ended ---------------- |
||||
|---|---|---|---|---|
| (Unaudited) (Unaudited) | ||||
| June 27, 2009 ---- |
----------- ----------- June 28, 2008 ---- |
|||
| Net sales Other revenues |
3,627 26 |
4,841 28 |
||
| NET REVENUES Cost of sales |
-- 3,653 (2,696) |
-- 4,869 (3,090) |
||
| GROSS PROFIT | ------ 957 |
------ 1,779 |
||
| Selling, general and administrative | (566) | (585) | ||
| Research and development | (1,168) | (978) | ||
| Other income and expenses, net Impairment, restructuring charges and other |
98 | 39 | ||
| related closure costs | (142) | (369) | ||
| Total Operating Expenses | ---- (1,778) |
---- (1,893) |
||
| OPERATING LOSS | ------ (821) |
------ (114) |
||
| Other-than-temporary impairment charge on | ||||
| financial assets | (72) | (69) | ||
| Interest income, net | 2 | 40 | ||
| Loss on equity investments | (281) | (5) | ||
| Loss on sale of financial assets | (8) -- |
- - |
||
| LOSS BEFORE INCOME TAXES AND NONCONTROLLING INTEREST |
(1,180) | (148) | ||
| Income tax benefit | 157 | 19 | ||
| --- | -- |
| LOSS BEFORE NONCONTROLLING INTEREST Net loss (income) attributable to |
(1,023) | (129) |
|---|---|---|
| noncontrolling interest | 163 --- |
(2) -- |
| NET LOSS ATTRIBUTABLE TO PARENT COMPANY | (860) ==== |
(131) ==== |
| LOSS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS LOSS PER SHARE (DILUTED) ATTRIBUTABLE TO |
(0.98) | (0.15) |
| PARENT COMPANY SHAREHOLDERS | (0.98) | (0.15) |
| NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING LOSS PER SHARE |
875.5 | 900.1 |
STMicroelectronics N.V. CONSOLIDATED BALANCE SHEETS
| As at In million of U.S. dollars |
June 27, 2009 |
March 28, 2009 |
December 31, 2008 |
|---|---|---|---|
| ---- | ---- (Unaudited) (Unaudited) ----------- ----------- |
---- (Audited) --------- |
|
| ASSETS | |||
| ====== | |||
| Current assets: | |||
| Cash and cash equivalents | 1,685 | 1,480 | 1,009 |
| Marketable securities | 759 | 988 | 651 |
| Short-term deposits | |||
| Trade accounts receivable, net | 1,228 | 1,101 | 1,064 |
| Inventories, net | 1,449 | 1,656 | 1,840 |
| Deferred tax assets Assets held for sale |
298 32 |
248 0 |
252 0 |
| Other receivables and assets | 1,051 | 896 | 685 |
| ----- | --- | --- | |
| Total current assets | 6,502 | 6,369 | 5,501 |
| Goodwill | 1,108 | 1,121 | 958 |
| Other intangible assets, net | 878 | 894 | 863 |
| Property, plant and equipment, net | 4,247 | 4,341 | 4,739 |
| Long-term deferred tax assets | 339 | 319 | 373 |
| Equity investments | 328 | 376 | 510 |
| Restricted cash | 250 | 250 | 250 |
| Non-current marketable securities Other investments and other non- |
170 | 184 | 242 |
| current assets | 388 | 337 | 477 |
| --- | --- | --- | |
| 7,708 | 7,822 | 8,412 | |
| Total assets | 14,210 ------ |
14,191 ------ |
13,913 ------ |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| ==================================== | |||
| Current liabilities: Bank overdrafts |
0 | 3 | 20 |
| Current portion of long-term debt | 174 | 159 | 123 |
| Trade accounts payable | 873 | 707 | 847 |
| Other payables and accrued | |||
| liabilities | 1,014 | 1,037 | 996 |
| Dividends payable to shareholders | 79 | 0 | 79 |
| Deferred tax liabilities | 51 | 30 | 28 |
| Accrued income tax | 131 | 121 | 125 |
|---|---|---|---|
| Total current liabilities | --- 2,322 |
--- 2,057 |
--- 2,218 |
| Long-term debt | ----- 2,485 |
2,486 | 2,554 |
| Reserve for pension and | |||
| termination indemnities | 336 | 313 | 332 |
| Long-term deferred tax liabilities | 24 | 26 | 27 |
| Other non-current liabilities | 377 | 355 | 350 |
| --- 3,222 |
--- 3,180 |
--- 3,263 |
|
| Total liabilities | 5,544 | 5,237 | 5,481 |
| Commitment and contingencies | |||
| Equity | |||
| Parent company shareholders' 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, 910,319,305 shares | |||
| issued, 878,292,739 shares outstanding) 1,156 | 1,156 | 1,156 | |
| Capital surplus | 2,464 | 2,455 | 2,324 |
| Accumulated result | 2,995 | 3,521 | 4,064 |
| Accumulated other comprehensive | |||
| income | 1,108 | 890 | 1,094 |
| Treasury stock | (378) | (480) | (482) |
| ---- | ---- | ---- | |
| Total parent company | |||
| shareholders' equity | 7,345 | 7,542 | 8,156 |
| Noncontrolling interest | 1,321 | 1,412 | 276 |
| ----- | ----- | --- | |
| Total equity | 8,666 | 8,954 | 8,432 |
| Total liabilities and equity | ----- 14,210 |
----- 14,191 |
----- 13,913 |
| ------ | ------ | ------ |
SOURCE STMicroelectronics
CONTACT: Investor Relations, Tait Sorensen, Director, Investor Relations, +1-602-485-2064, [email protected], or Media Relations, Maria Grazia Prestini, Senior Director, Corporate Media and Public Relations, +41 22 929 6945, [email protected], both of STMicroelectronics
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