STMicroelectronics N.V.

Consolidated Statements of Income

(in millions of U.S. dollars, except per share data ($))

Three Months Ended

(Unaudited)

(Unaudited)

March 31,

April 2,

2012

2011

Net sales

2,010

2,523

Other revenues

7

12

  NET REVENUES

2,017

2,535

Cost of sales

(1,421)

(1,544)

  GROSS PROFIT

596

991

Selling, general and administrative

(310)

(312)

Research and development

(633)

(562)

Other income and expenses, net

13

25

Impairment, restructuring charges and other related closure costs

(18)

(24)

  Total Operating Expenses

(948)

(873)

  OPERATING INCOME (LOSS)

(352)

118

Other-than-temporary impairment charge on financial assets

-

(5)

Interest expense, net

(13)

(15)

Earnings (loss) on equity-method investments

(7)

(6)

Gain on financial instruments, net

3

22

  INCOME (LOSS) BEFORE INCOME TAXES 

(369)

114

   AND NONCONTROLLING INTEREST

Income tax benefit (expense)

34

(31)

  NET INCOME (LOSS) 

(335)

83

Net loss (income) attributable to noncontrolling interest

159

87

  NET INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY

(176)

170

  EARNINGS (LOSS) PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS

(0.20)

0.19

  EARNINGS (LOSS) PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS

(0.20)

0.19

  NUMBER OF WEIGHTED AVERAGE

  SHARES USED IN CALCULATING

  DILUTED EARNINGS (LOSS) PER SHARE

885.0

907.4