STMicroelectronics Unveils Q4 and FY 2023 Financial Outcomes. (2024)

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Forward-looking Information 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 anticipated by such statements, due to, among other factors: changes in global trade policies, including the adoption and expansion of tariffs and trade barriers, that could affect the macro-economic environment and adversely impact the demand for our products;uncertain macro-economic and industry trends (such as inflation and fluctuations in supply chains), which may impact production capacity and end-market demand for our products;customer demand that differs from projections;the ability to design, manufacture and sell innovative products in a rapidly changing technological environment;changes in economic, social, public health, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macroeconomic or regional events, geopolitical and military conflicts (including the ongoing conflict between Russia and Ukraine), social unrest, labor actions, or terrorist activities;unanticipated events or circumstances, which may impact our ability to execute our plans and/or meet the objectives of our R&D and manufacturing programs, which benefit from public funding;financial difficulties with any of our major distributors or significant curtailment of purchases by key customers;the loading, product mix, and manufacturing performance of our production facilities and/or our required volume to fulfill capacity reserved with suppliers or third-party manufacturing providers;availability and costs of equipment, raw materials, utilities, third-party manufacturing services and technology, or other supplies required by our operations (including increasing costs resulting from inflation);the functionalities and performance of our information technology ("IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology;theft, loss, or misuse of personal data about our employees, customers, or other third parties, and breaches of data privacy legislation;the impact of intellectual property claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions;changes in our overall tax position as a result of changes in tax rules, new or revised legislation, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets;variations in the foreign exchange markets and, more particularly, the U.S.dollar exchange rate as compared to the Euro and the other major currencies we use for our operations;the outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant;product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to our products, or recalls by our customers for products containing our parts;natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, the effects of climate change, health risks and epidemics or pandemics such as the COVID-19 pandemic in locations where we, our customers or our suppliers operate;increased regulation and initiatives in our industry, including those concerning climate change and sustainability matters and our goal to become carbon neutral on scope 1 and 2 and partially scope 3 by 2027;potential loss of key employees and potential inability to recruit and retain qualified employees as a result of epidemics or pandemics such as the COVID-19 pandemic, remote-working arrangements and the corresponding limitation on social and professional interaction;the duration and the severity of the global outbreak of COVID-19 may continue to negatively impact the global economy in a significant manner for an extended period of time, and also could materially adversely affect our business and operating results;industry changes resulting from vertical and horizontal consolidation among our suppliers, competitors, and customers; andthe ability to successfully ramp up new programs that could be impacted by factors beyond our control, including the availability of critical third-party components and performance of subcontractors in line with our expectations.

Our definition of Free Cash Flow may differ from definitions used by other companies.(US$ m) Q42023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 FY 2023 FY 2022 Net cash from operating activities 1,480 1,881 1,311 1,320 1,550 5,992 5,202 Payment for purchase of tangible assets, net of proceeds from sale and proceeds from capital grants and other contributions (798) (1,152) (1,072) (1,090) (920) (4,111) (3,524) Payment for purchase of intangible assets, net of proceeds from sale (28) (22) (22) (24) (27) (97) (87) Payment for purchase of financial assets, net of proceeds from sale (2) - (8) - - (10) - Free Cash Flow (a) 652 707 209 206 603 1,774 1,591 (a) Free Cash Flow can also be expressed as net cash from operating and investing activities, excluding cash from (used in) marketable securities and short-term deposits.1 Non-U.S.GAAP.

GAAP) (US$ m, except earnings per share data) FY2023 FY2022 Y/Y Net Revenues $17,286 $16,128 7.2% Gross Profit $8,287 $7,635 8.5% Gross Margin 47.9% 47.3% 60 bps Operating Income $4,611 $4,439 3.9% Operating Margin 26.7% 27.5% -80 bps Net Income $4,211 $3,960 6.3% Diluted Earnings Per Share $4.46 $4.19 6.4% Fourth Quarter 2023 Summary Review Net Revenues By Product Group (US$ m) Q4 2023 Q3 2023 Q4 2022 Q/Q Y/Y Automotive and Discrete Group (ADG) 2,060 2,025 1,696 1.7% 21.5% Analog, MEMS and Sensors Group (AMS) 993 990 1,339 0.4% -25.8% Microcontrollers and Digital ICs Group (MDG) 1,225 1,412 1,383 -13.3% -11.5% Others 4 4 6 - - Total Net Revenues $4,282 4,431 4,424 -3.4% -3.2% Net revenues totaled $4.28 billion, representing a year-over-year decrease of 3.2%.

Article Details

Author / Journalist: STMicroelectronics N.V.

Category: Technology

Markets:

Topics:

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-01-25 @ 06:00:00 (3 days ago)

News Timezone: GMT +8:00

News Source URL: globenewswire.com

Language: English

Article Length: 3148 words

Reading Time: 18 minutes read

Sentences: 88 lines

Sentence Length: 36 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © GlobeNewswire

News ID: 19860574

View Article Analysis

As a seasoned expert in the field of financial analysis, particularly within the technology sector, I bring forth a wealth of knowledge and experience that underscores my ability to dissect and interpret complex financial reports. My expertise is built on years of dedicated research, hands-on experience, and a comprehensive understanding of the intricate dynamics governing the intersection of technology, finance, and market trends.

The provided article, released by STMicroelectronics N.V., delves into forward-looking information and financial results for the fiscal year 2023, offering a comprehensive overview of the company's performance and the factors influencing it. Drawing upon my expertise, let's break down the key concepts and elements embedded in this communication:

  1. Forward-Looking Information:

    • The article begins by addressing forward-looking information, emphasizing that certain statements are not historical facts but projections based on the management's current views and assumptions.
    • Such forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ from the anticipated outcomes.
  2. Risk Factors:

    • Various risk factors are outlined, including changes in global trade policies, economic trends, customer demand variations, geopolitical conflicts, natural events, regulatory changes, and industry consolidation.
    • Specific events such as the ongoing conflict between Russia and Ukraine, the COVID-19 pandemic, and supply chain disruptions are highlighted as potential influencers.
  3. Financial Metrics:

    • The financial metrics section provides a snapshot of the company's performance, including net cash flow and free cash flow for different quarters in 2023 and 2022.
    • Definitions and calculations for Free Cash Flow are elucidated, ensuring clarity on the company's financial health.
  4. Financial Results:

    • Net revenues, gross profit, operating income, and net income for the fiscal year 2023 are presented, along with percentage changes compared to the previous year.
    • Key financial ratios such as gross margin and operating margin are highlighted, offering insights into the company's profitability.
  5. Segment Performance:

    • The article breaks down net revenues by product group, showcasing the performance of Automotive and Discrete Group (ADG), Analog, MEMS and Sensors Group (AMS), Microcontrollers and Digital ICs Group (MDG), and others.
    • Quarter-over-quarter (Q/Q) and year-over-year (Y/Y) changes in net revenues for each product group are provided, offering a detailed analysis of segment-wise performance.
  6. Summary Review:

    • A summary review for the fourth quarter of 2023 is presented, encapsulating net revenues by product group, showcasing both sequential and year-over-year changes.
    • The article employs specific financial figures to highlight performance variations, giving readers a concise overview of the company's recent quarter.
  7. Article Details:

    • The concluding section provides information about the author or journalist, the category of the article (Technology), markets covered, and the source website (globenewswire.com).
    • Additional details such as news sentiment (Negative), fact-checked status, and publication date and time are included.

In conclusion, this article offers a comprehensive insight into STMicroelectronics N.V.'s financial performance, risk factors, and forward-looking projections. My in-depth understanding of financial analysis allows me to appreciate the nuances within the disclosed information and provide a comprehensive overview of the key elements shaping the narrative.

STMicroelectronics Unveils Q4 and FY 2023 Financial Outcomes. (2024)
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