Gross profit totaled $1.95 billion, representing a year-over-year decrease of 7.3%. Gross margin of 45.5%, 50 basis points below the mid-point of ST’s guidance, decreased 200 basis points year-over-year, due to higher input manufacturing costs, unused capacity charges, and negative currency effect net of hedging, partially offset by the combination of sales price and product mix.
Operating income decreased 20.5% to $1.02 billion, compared to $1.29 billion in the year-ago quarter. ST’s operating margin decreased 520 basis points on a year-over-year basis to 23.9% of net revenues, compared to 29.1% in the fourth quarter of 2022.
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 39.7% to $657 million. Operating margin was 31.9% compared to 27.7%.
Analog, MEMS and Sensors Group (AMS):
- Revenue increased in Analog and decreased in Imaging and in MEMS.
- Operating profit decreased by 57.4% to $147 million. Operating margin was 14.8% compared to 25.8%.
Microcontrollers and Digital ICs Group (MDG):
- Revenue decreased for Microcontrollers and increased for RF Communications.
- Operating profit decreased by 30.9% to $342 million. Operating margin was 28.0% compared to 35.8%.
Net income decreased to $1.08 billion compared to $1.25 billion in the year-ago quarter. Both the fourth quarter 2023 and the fourth quarter 2022 financial results included one-time non-cash income tax benefits of $191 million and $141 million respectively. Diluted earnings per share decreased to $1.14 compared to $1.32 in the year-ago quarter.
Cash Flow and Balance Sheet Highlights
| Trailing 12 Months | ||||||
| (US$ m) | Q4 2023 | Q3 2023 | Q4 2022 | Q4 2023 | Q4 2022 | TTM Change |
| Net cash from operating activities | 1,480 | 1,881 | 1,550 | 5,992 | 5,202 | 15.2% |
| Free cash flow (non-U.S. GAAP) 1 | 652 | 707 | 603 | 1,774 | 1,591 | 11.5% |
Net cash from operating activities was $1.48 billion in the fourth quarter compared to $1.55 billion in the year-ago quarter. For the full-year 2023, net cash from operating activities increased 15.2% to $5.99 billion, representing 34.7% of total revenues.
