Gross profit totaled $2.11 billion, representing a year-over-year increase of 2.4%. Gross margin of 47.6% was stable year-over-year, as improved product mix was offset by higher manufacturing costs and unused capacity charges.

Operating income decreased 2.4% to $1.24 billion, compared to $1.27 billion in the year-ago quarter. ST’s operating margin decreased 140 basis points on a year-over-year basis to 28.0% of net revenues, compared to 29.4% in the 2022 third quarter.

By product group, compared with the year-ago quarter:

Automotive and Discrete Group (ADG):

• Revenue increased for both Automotive and Power Discrete.
• Operating profit increased by 57.9% to $638 million. Operating margin was 31.5% compared to 25.9%. 

Analog, MEMS and Sensors Group (AMS):

• Revenue decreased in Analog, in Imaging and in MEMS.
• Operating profit decreased by 50.6% to $186 million. Operating margin was 18.8% compared to 27.2%.

Microcontrollers and Digital ICs Group (MDG):

• Revenue increased for RF Communications while Microcontrollers were stable.
• Operating profit decreased by 1.6% to $496 million. Operating margin was 35.1% compared to 36.7%.

Net income was stable at $1.09 billion compared to $1.10 billion in the year-ago quarter, and diluted earnings per share remained stable at $1.16.

Cash Flow and Balance Sheet Highlights

Net cash from operating activities was $1.88 billion in the third quarter compared to $1.65 billion in the year-ago quarter.

Capital expenditure payments, net of proceeds from sales, capital grants and other contributions, were $1.15 billion in the third quarter. In the year-ago period, capital expenditures, net, were $0.96 billion.