STMicroelectronics Reports 2008 Fourth Quarter and Full Year Revenues and Earnings

Full Year 2008 Revenues by Product Group

The following table provides a breakdown of revenues by product group.


    Net Revenues                    Full Year  Full Year  Year-over-Year
    (In Million US$ and %)             2008       2007        Change

    ACCI
       Automotive (APG)                1,460     1,419          2.9%
       Computer and Communication
        Infrastructure (CCI)           1,077     1,123         (4.0%)
       Home Entertainment &
        Displays (HED)                 1,585     1,402         13.0%
       Other ACCI                      7         0             n/a

    IMS
       Analog, Power and MEMS (APM)    2,393     2,313          3.5%
       Micro, non-Flash Memory
        and Smartcard (MMS)              936       825         13.3%

Business Outlook

Mr. Bozotti stated, "While it is extremely difficult to predict how the industry will evolve in 2009, we believe it could be a year of fundamental change and opportunity.

"We have four key priorities for ST during 2009.

    --  First, 2009 will be a year focused on improving our competitiveness as
        we execute on our plan to complete the wireless joint venture with
        Ericsson Mobile Platforms during the first quarter.
    --  Second, we are targeting to reduce our costs by over $700 million in
        2009 in respect to the Company's fourth quarter 2008 cost base. The
        actions are a combination of the ongoing restructuring initiatives and
        new programs that are focused on resizing the Company's manufacturing
        operations and streamlining expenses, and are expected to affect about
        4,500 net jobs worldwide in 2009.
    --  Third, we continue to advance our lighter asset strategy focused on
        careful management of our capital investments. As a result, we have set
        a capex budget of about $500 million for 2009, representing a 50%
        reduction in comparison to 2008.
    --  Fourth, thanks to our strong and consistent investment in our product
        portfolio we are in a solid position to provide innovative products that
        will continue our momentum by driving the Company to gain market share
        in 2009 just as we have in 2008."

Current uncertainty in the global financial markets, economic recession in one or more of the world's major economies, seasonality, and the effect on demand for semiconductor products in the key application markets and from key customers served by our products makes it extremely difficult to accurately forecast product demand and other related matters and makes it more likely that ST's actual results could differ materially from expectations. Consequently, the Company will only provide approximate revenue and gross margin internal planning targets with respect to the first quarter of 2009. When visibility on market conditions improve, the Company will reconsider providing quantitative guidance similar to past practices. In the meantime and for internal purposes, the Company is currently planning for revenues to be in the range of $1.5 billion to $1.85 billion. As ST works to reduce inventory levels during this timeframe, fab loading will run at levels of about 50%, driving gross margin to a extraordinary low level which the Company is planning for internal purposes to be in the mid to high 20s as a percentage of sales. Gross margin is subject to changes in demand levels and pricing that could impact fab loading, inventory write-offs, mix and unit costs, and combined with currency fluctuations potentially create additional margin variability.

The above internal planning data do not include the potential impact - to include related purchase accounting - of the expected business combination with Ericsson Mobile Platforms.

Q4 2008 Products, Technology and Design Wins

Automotive, Consumer, Computer and Telecom Infrastructure (ACCI) Product Highlights

    --  In automotive powertrain applications, ST gained several design wins: a
        multi-driver IC for a market leader in Japan, expected to be used by two
        car makers in Japan and third in China; and in Europe, tier-one OEMs
        selected ST for a mid- to low-end powertrain platform, including
        multiple Power PC-based microprocessors, and as the single-source
        supplier for gasoline direct-injection integrated driver ICs, for use in
        small to medium Euro 5 and 6 cars from 2012, involving most European car
        makers and several makers in China. ST also gained design wins for its
        automotive standard products, in areas such as airbags and brake-control
        modules.

    --  Also in powertrain, ST and LG Chem unveiled details of a battery pack
        combining LG Chem's lithium-ion battery technology and a
        state-of-the-art battery-management IC from ST, which can significantly
        extend the potential of electric and hybrid electric vehicles (HEVs),
        reducing both petrol consumption and CO2 emissions. In safety
        applications, ST announced its first high-dynamic-range CMOS camera
        tailored for vision-based Advanced Driver-Assistance Systems (ADAS).

    --  In car multimedia, ST announced it is to collaborate on a common
        platform that combines ST's GPS technology with NAVTEQ's digital road
        map, also for ADAS solutions. ST's GPS technologies were also selected
        by two major system makers for telematics applications in South America
        and also for tolling systems in Europe. Additionally, ST introduced the
        world's first car audio-amplifier with a digital input, eliminating the
        need for signal conversion and resulting in higher sound quality and
        better noise immunity.

    --  In car-body applications, ST gained many design wins for body control
        module platforms in Europe and Japan and achieved strong market
                acceptance  of  its  24V  product  roadmap  for  intelligent  power  switches.  ST
                also  introduced  a  single  chip  that  produces  the  major  signals  required
                to  drive  vehicle  door-mounted  systems  as  well  as  an  improved  method  for
                controlling  electrochrome  rear-view  mirrors,  eliminating  discrete  driver
                chips  normally  mounted  in  multiple  locations  inside  the  door.
 

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7  Next Page »



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise