-- Return to positive free cash flow of $47 million in the fourth quarter*
(PRNewswire) — STMicroelectronics (NYSE: STM) reported financial results for the fourth quarter and full year ended December 31, 2011.President and CEO Carlo Bozotti commented, "In 2011, our wholly-owned businesses delivered a solid performance throughout the year, within the backdrop of a severe slowdown in the broader semiconductor market as the year evolved. ST's wholly-owned businesses delivered revenue of $8.2 billion and an operating margin of 11.4%.
"Moreover, we expected to see strong growth during 2011 in two of our key strategic product areas and we are particularly proud of our achievements there. Our MEMS sales nearly doubled to over $600 million. Our automotive business reported record revenues, with sales up 18% during 2011, on top of sales growth of over 40% during 2010. In both areas, revenue growth was also accompanied by a significant expansion of the operating profitability of these product groups.
"We also continued to maintain a strong financial position and sharp focus on capital management. Exiting the year, our financial resources totaled $2.3 billion and our net financial position was about $1.17 billion, as adjusted, taking into account the 50% of ST-Ericsson's debt. As anticipated, we saw an improvement in the fourth quarter in inventory levels and inventory turns and capital expenditures are back down to much lower levels as planned.
"For ST-Ericsson, managing the wireless joint venture's shift from a legacy portfolio to the new product roadmap has proven more challenging than expected given the change in the business of one of their largest customers and its evolving plans. While the new portfolio is beginning to ramp, the current results of ST-Ericsson are still distant from the financial prospects we are envisioning. Therefore, ST-Ericsson is now in a crucial phase focusing on improving execution, lowering its break-even point and reviewing its roadmap to sustainable profitability. We are confident that the newly appointed Chief Executive Officer of ST-Ericsson is the appropriate leader to drive this turnaround."
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(*) Free cash flow is a non-U.S. GAAP measure. Please refer to Attachment A for additional information explaining why the Company believes this measure is important and for reconciliation to U.S. GAAP.
Summary Financial Highlights for the Fourth Quarter
|
(In Million US$) |
Q4 2011 |
Q3 2011 |
Q4 2010 |
|
Net Revenues (a) |
2,191 |
2,442 |
2,833 |
|
Gross Margin |
33.4% |
35.8% |
39.9% |
|
Operating Income (Loss), as reported |
(132) |
(23) |
213 |
|
Non-U.S. GAAP Operating Income (Loss) before restructuring* |
(123) |
(13) |
245 |
|
Non-U.S. GAAP Operating Margin before restructuring* Non-U.S. GAAP Operating Margin before restructuring attributable to ST* |
(5.6%) (0.2%)
|
(0.5%) 4.3%
|
(8.7%) 12.4%
|
|
Net Income |
(11) |
71 |
219 |
