STMicroelectronics Q1 Net Revenue Stands At $3.02 Billion

- Advertisement -
  • Year-over-year net sales to OEMs and Distribution increased 21.4 per cent and 76.2 per cent, respectively
  • Operating margin improved 420 basis points to 14.6 per cent and net income increased 89.6 per cent to $364 million

STMicroelectronics first quarter net revenues stood at $3.02 billion, gross margin of 39.0 per cent operating margin of 14.6 per cent, and net income of $364 million or $0.39 diluted earnings per share. On a year-over-year basis, the company recorded higher net sales in all product groups except the RF Communications (former “Digital”) sub-group.

Year-over-year net sales to OEMs and Distribution increased 21.4 per cent and 76.2 per cent, respectively. On a sequential basis, net revenues decreased 6.8 per cent, 270 basis points above the mid-point of the Company’s guidance. ADG and MDG reported increases in net revenues on a sequential basis while AMS decreased

Jean-Marc Chery, STMicroelectronics President & CEO, said, “In the first quarter of 2021, net revenues increased 35.2 per cent year-over-year. All product groups contributed to this growth, on continued acceleration of demand globally. Operating margin improved 420 basis points to 14.6 per cent and net income increased 89.6 per cent to $364 million.”

- Advertisement -

He added that on a sequential basis, net revenues decreased 6.8 per cent, 270 basis points above the mid-point of the outlook. Automotive and Power Discrete products and Microcontrollers increased sequentially, partially offset by Personal Electronics products.

Invest about $2.0 billion in CAPEX

He said, “ST’s second quarter outlook, at the mid-point, is for net revenues of $2.9 billion, increasing year-over-year by 39 per cent, and decreasing sequentially by 3.8 per cent due to usual seasonality in Personal Electronics; gross margin is expected to be about 39.5 per cent. We will drive the Company based on a plan for FY21 revenues of $12.1 billion, plus or minus $150 million, a year-over-year increase of 18.4 per cent at the mid-point. This growth is expected to be driven by strong dynamics in all end markets we address and our engaged customer programs. For 2021, we now plan to invest about $2.0 billion in CAPEX to support the strong market demand and our strategic initiatives.”

Gross profit totaled $1.18 billion, a year-over-year increase of 38.9 per cent. Gross margin of 39.0 per cent increased 110 basis points year-over-year, mainly due to lower unloading charges, manufacturing efficiencies and improved mix partially offset by negative currency effects, net of hedging. First quarter gross margin was 50 basis points above the mid-point of the Company’s guidance mainly due to better product mix.

Operating income increased 90.3 per cent to $440 million, compared to $231 million in the year-ago quarter. It’s operating margin increased 420 basis points on a year-over-year basis to 14.6 per cent of net revenues, compared to 10.4 per cent in the 2020 first quarter.

For Automotive and Discrete Group (ADG), revenue increased in both Automotive and in Power Discrete

By product group, compared with the year-ago quarter, for Automotive and Discrete Group (ADG), revenue increased in both Automotive and in Power Discrete. Operating profit increased by 280.4 per cent to $85 million. Operating margin was 8.2 per cent compared to 3.0 per cent. For Analog, MEMS and Sensors Group (AMS), revenue increased in Analog, MEMS and Imaging. Operating profit increased by 5.4 per cent to $187 million.

Operating margin was 17.2 per cent compared to 20.8 per cent. For Microcontrollers and Digital ICs Group (MDG), revenue increased in Microcontrollers and decreased in RF Communications.Operating profit increased by 140.5 per cent to $172 million. Operating margin was 19.4 per cent compared to 11.5 per cent.

Net income and diluted earnings per share increased to $364 million and $0.39, respectively, compared to $192 million and $0.21, respectively, in the year-ago quarter. Capital expenditure payments, net of proceeds from sales, were $405 million in the first quarter. In the year-ago quarter, capital expenditures, net, were $266 million. Inventory at the end of the first quarter was $1.84 billion, compared to $1.77 billion in the year-ago quarter. Day sales of inventory at quarter-end was 91 days compared to 118 days in the year-ago quarter.

It said, “Free cash flow (non-U.S. GAAP) was $261 million in the first quarter, up from $113 million in the year-ago quarter. In the first quarter, the Company paid cash dividends to its shareholders totaling $38 million and executed a $156 million share buy-back as part of its previously announced share repurchase program. ST’s net financial position (non-U.S. GAAP) was $1.19 billion at April 3, 2021 compared to $1.10 billion at December 31, 2020 and reflected total liquidity of $4.16 billion and total financial debt of $2.97 billion.”

The company’s guidance, at the mid-point, for the 2021 second quarter is. “Net revenues are expected to be $2.9 billion, a decrease of 3.8 per cent sequentially, plus or minus 350 basis points, gross margin of about 39.5 per cent, plus or minus 200 basis points .This outlook is based on an assumed effective currency exchange rate of approximately $1.18 = €1.00 for the 2021 second quarter and includes the impact of existing hedging contracts. The second quarter will close on July 3, 2021. It expects its 2021 CAPEX to be about $2 billion.

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

5G Chipset Market to Hit $92.09B by 2030

0
Reports indicate that the global next-gen wireless processor market is on track to surpass the $100 billion mark in the coming decade. The 5G chipset...
Gursaurabh Singh, Founder of Dhruv Vidyut

“Electrifying Rural Mobility- Converting Traditional Bicycles Into E-Bikes”

0
In a conversation with Nitisha Dubey from EFY, Gursaurabh Singh, the Founder of Dhruv Vidyut, discusses their conversion kit, which can transform any conventional...
Rahul Bollini, the Founder of Bollini Energy

“Formal Contracts For Long-Term Commitments Are Not Always Necessary”

0
Bollini Energy collaborates with various companies interested in understanding the complete value chain of Lithium-ion cells. They offer technical services that span from mining...

Buzz

Government Expands Electronics Manufacturing, Doubles Output

0
Ashwini Vaishnaw emphasises government efforts to expand electronics manufacturing, aiming to double production and employment in five years, alongside implementing the DPDP Act. India's electrical...

Assam To See 1000 MW Solar Power Project Shortly

0
The Chief Minister of Assam announced that the construction of the Karbi Anglong solar power project will begin soon.  Himanta Biswa Sarma, the Chief Minister,...

TIER IV And Suzuki Partner For Autonomous Driving In Japan

0
Tier IV, a pioneer in developing Autoware, the first open-source software for autonomous driving in the world, has formed a business alliance with Suzuki...

Important Sectors

Government Expands Electronics Manufacturing, Doubles Output

0
Ashwini Vaishnaw emphasises government efforts to expand electronics manufacturing, aiming to double production and employment in five years, alongside implementing the DPDP Act. India's electrical...

Assam To See 1000 MW Solar Power Project Shortly

0
The Chief Minister of Assam announced that the construction of the Karbi Anglong solar power project will begin soon.  Himanta Biswa Sarma, the Chief Minister,...

TIER IV And Suzuki Partner For Autonomous Driving In Japan

0
Tier IV, a pioneer in developing Autoware, the first open-source software for autonomous driving in the world, has formed a business alliance with Suzuki...

Mahindra Group Pursues Global Partnerships For EV Expansion

0
Mahindra Group seeks global partners for local battery cell production to meet rising electric vehicle demand and plans to list Mahindra Electric Automobile Ltd...

Essar Plans $3.5B Green Hydrogen Plant In Gujarat

0
The Mumbai-based metals-to-infrastructure conglomerate has planned an investment of Rs.30,000 crores in a green hydrogen plant. The company says this will boost its business...

Manufacturing

Honeywell Creates AI Software For Gigafactory Efficiency

0
Honeywell anticipates that its new battery manufacturing excellence platform will lower the costs of cell production, speed up the ramp-up cycles, and decrease material...

Raju B Ketkale Named CEO Of Lumax Industries

0
He takes over from Vishnu Johri, who is stepping down for personal reasons. Lumax Industries Limited, a Tier-1 automotive lighting system and component manufacturer within...

Schaeffler And Symbio JV Innoplate Starts Fuel Cell Plate Production

0
Starting with an initial production capacity of 4 million bipolar plates, the Innoplate joint venture is projected to achieve an annual output of 50...

Tesla Pushes Suppliers To Source Parts Beyond Taiwan And China

0
China and Taiwan are major global producers of essential electronics parts and components. Tesla has requested that its suppliers move the production of components and...

Uno Minda Shines With Increased Content Per Car And EV Focus

0
Uno Minda, a key player in the auto parts industry, has demonstrated significant revenue growth, surpassing industry averages by more than double over the...