PR No: C2954C
- Q1 net revenues $2.23 billion; gross margin 37.9%;
operating margin 10.4%; net income $192 million
- Q1 net financial position(1) $668
million
- Business outlook at mid-point: Q2 net revenues $2.0
billion and gross margin of 34.6%
Geneva, April 22, 2020 -
STMicroelectronics (NYSE: STM), a global semiconductor
leader serving customers across the spectrum of electronics
applications, reported U.S. GAAP financial results for the first
quarter ended March 28, 2020. This press release also contains
non-U.S. GAAP measures (see Appendix for additional
information).
ST reported first quarter net revenues of $2.23
billion, gross margin of 37.9%, operating margin of 10.4%, and net
income of $192 million or $0.21 diluted earnings per share.
Jean-Marc Chery, STMicroelectronics President
& CEO, commented:
- “In the first quarter of 2020, net
revenues increased 7.5% year-over-year, led by higher sales of our
Imaging products and growth in Analog and Microcontrollers,
partially offset by lower sales in Automotive, Power Discrete and
Digital. Operating margin improved to 10.4% and net income
increased 7.9% to $192 million.
- “Our revenues came in about 5% below the mid-point of
our outlook when entering the quarter. The COVID-19 outbreak and
subsequent containment measures by governments around the world
brought challenges in our manufacturing operations and, especially
in the last few days of the quarter, logistics. Our Q1 gross margin
of 37.9% was largely in line with our mid-point
target.
- “We exited the first quarter with a stable net
financial position of $668 million, available liquidity of $2.7
billion and available credit facilities of $1.1
billion.
- “Our second quarter outlook is taking into account the
declining demand environment, especially in Automotive, as well as
the ongoing operational and logistics challenges due to current
governmental regulations. We anticipate that all of our
manufacturing sites will be operational. Some of them will run at
reduced capacity, with unsaturation charges currently estimated to
be about 400 basis points.
- “We will drive the Company based on a plan for FY20
revenues between $8.8 billion and $9.5 billion. We plan for growth
in the second half over the first half to be in the range of $340
million to $1.04 billion. Growth will be driven by already engaged
customer programs and the removal of supply constraints. The growth
range is linked to the evolution of the market.
- “We have reduced our CAPEX plan for 2020 from $1.5
billion to a range between $1.0 billion to $1.2
billion.
- “In response to the global COVID-19 pandemic, we will
continue to ensure the health and safety of all our employees and
to execute our business continuity plans, working with our
customers, partners and the communities where we
operate.”
Quarterly
Financial Summary (U.S. GAAP)
(US$ m, except per share data) |
Q1 2020 |
Q4 2019 |
Q1 2019 |
Q/Q |
Y/Y |
Net Revenues |
$2,231 |
$2,754 |
$2,076 |
-19.0% |
7.5% |
Gross Profit |
$846 |
$1,081 |
$818 |
-21.8% |
3.5% |
Gross Margin |
37.9% |
39.3% |
39.4% |
-140 bps |
-150 bps |
Operating Income |
$231 |
$460 |
$211 |
-49.8% |
9.4% |
Operating Margin |
10.4% |
16.7% |
10.2% |
-630 bps |
20 bps |
Net Income |
$192 |
$392 |
$178 |
-51.0% |
7.9% |
Diluted Earnings Per Share |
$0.21 |
$0.43 |
$0.20 |
-51.2% |
5.0% |
(1) Non-U.S. GAAP. See Appendix for
reconciliation to U.S. GAAP and information explaining why the
Company believes these measures are important.
First Quarter 2020 Summary Review
Net Revenues By Product Group (US$ m) |
Q1 2020 |
Q4 2019 |
Q1 2019 |
Q/Q |
Y/Y |
Automotive and Discrete Group (ADG) |
753 |
924 |
903 |
-18.4% |
-16.6% |
Analog, MEMS and Sensors Group (AMS) |
852 |
1,085 |
552 |
-21.5% |
54.3% |
Microcontrollers and Digital ICs Group (MDG) |
623 |
742 |
617 |
-16.0% |
1.0% |
Others |
3 |
3 |
4 |
- |
- |
Total Net Revenues |
2,231 |
2,754 |
2,076 |
-19.0% |
7.5% |
Net revenues totaled $2.23
billion, representing a year-over-year increase of 7.5%. On a
year-over-year basis, the Company recorded higher sales of Imaging,
Analog and Microcontrollers, partially offset by lower sales in
Automotive, Power Discrete and Digital. Year-over-year sales to
OEMs increased 22.5% and to Distribution decreased 21.4%. On a
sequential basis, net revenues decreased 19.0%, about 5% below the
mid-point of our outlook when entering the quarter as the COVID-19
outbreak and subsequent containment measures by governments around
the world brought challenges in our manufacturing operations and,
especially in the last few days of the quarter, logistics. All
product group revenues declined on a sequential basis.
Gross profit totaled $846
million, representing a year-over-year increase of 3.5%.
Gross margin of 37.9% decreased 150 basis points
year-over-year, mainly impacted by price pressure and unsaturation
charges, including COVID-19 workforce related restrictions. First
quarter gross margin was 10 basis points lower than the mid-point
of the Company’s guidance.
Operating income increased 9.4%
to $231 million, compared to $211 million in the year-ago quarter.
The Company’s operating margin increased 20 basis
points on a year-over-year basis to 10.4% of net revenues, compared
to 10.2% in the 2019 first quarter.
By product group, compared with
the year-ago quarter:
Automotive and Discrete Group (ADG):
- Revenue decreased in both Automotive and Power Discrete.
- Operating profit decreased by 76.4% to $23 million. Operating
margin was 3.0% compared to 10.6%.
Analog, MEMS and Sensors Group (AMS):
- Revenue increased in Imaging and Analog and was substantially
flat in MEMS.
- Operating profit increased by 313.1% to $177 million. Operating
margin was 20.8% compared to 7.8%.
Microcontrollers and Digital ICs Group
(MDG):
- Revenue increased in Microcontrollers and decreased in Digital
ICs.
- Operating profit decreased by 13.5% to $71 million. Operating
margin was 11.5% compared to 13.4%.
Net income and diluted
earnings per share increased to $192 million and $0.21,
respectively, compared to $178 million and $0.20, respectively, in
the year-ago quarter.
Cash Flow and Balance Sheet Highlights
|
|
|
|
Trailing 12 Months |
(US$ m) |
Q1 2020 |
Q4 2019 |
Q1 2019 |
Q1 2020 |
Q1 2019 |
TTM Change |
Net cash from operating activities |
399 |
775 |
341 |
1,927 |
1,730 |
11.4% |
Free cash flow (non-U.S. GAAP) |
113 |
461 |
(67) |
677 |
370 |
83.0% |
Capital expenditure payments, net of proceeds
from sales, were $266 million in the first quarter. In the year-ago
quarter, capital expenditures, net, were $322 million.
Inventory at the end of the quarter was $1.77
billion, at the same level as the prior year quarter. Day sales of
inventory at quarter-end was 116 days compared to 124 days in the
prior year quarter.
Free cash flow (non-U.S. GAAP) was positive $113
million in the first quarter, compared to negative $67 million in
the year-ago quarter.
In the first quarter, the Company paid cash
dividends totaling $53 million and executed a $62 million share
buy-back as part of its previously announced share repurchase
program.
ST’s net financial position (non-U.S. GAAP) was
$668 million at March 28, 2020 compared to $672 million at December
31, 2019 and reflected total liquidity of $2.71 billion and total
financial debt of $2.04 billion.
Business Outlook
The Company’s guidance, at the mid-point, for
the 2020 second quarter is:
- Net revenues are expected to be $2.0 billion, a decrease of
10.3% sequentially, plus or minus 350 basis points;
- Gross margin of about 34.6%, plus or minus 200 basis
points;
- This outlook is based on an assumed effective currency exchange
rate of approximately $1.11 = €1.00 for the 2020 second quarter and
includes the impact of existing hedging contracts.
- The second quarter will close on June 27, 2020.
The Company has reduced its 2020 CAPEX to
between $1.0 billion to $1.2 billion from $1.5 billion.
Recent Corporate
Developments
· On April 7, 2020, ST
closed the acquisition of a majority stake in French Gallium
Nitride (GaN) innovator Exagan. The transaction was funded with
available cash.
Conference Call and Webcast Information
STMicroelectronics will conduct a conference
call with analysts, investors and reporters to discuss its first
quarter 2020 financial results and current business outlook today
at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern
Time (ET). A live webcast (listen-only mode) of the conference call
will be accessible at ST’s website, http://investors.st.com, and
will be available for replay until May 8, 2020.
Use of Supplemental Non-U.S. GAAP Financial
Information
This press release contains supplemental
non-U.S. GAAP financial information.
Readers are cautioned that these measures are
unaudited and not prepared in accordance with U.S. GAAP and should
not be considered as a substitute for U.S. GAAP financial measures.
In addition, such non-U.S. GAAP financial measures may not be
comparable to similarly titled information from other
companies.
See the Appendix of this press release for a
reconciliation of the Company’s non-U.S. GAAP financial measures to
their corresponding U.S. GAAP financial measures. To compensate for
these limitations, the supplemental non-U.S. GAAP financial
information should not be read in isolation, but only in
conjunction with the Company’s consolidated financial statements
prepared in accordance with U.S. GAAP.
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, which may impact
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, military conflicts, 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;
- the Brexit vote and the impact of the withdrawal of the U.K.
may adversely affect business activity, political stability and
economic conditions in the U.K., the Eurozone, the EU and
elsewhere. The U.K. withdrawal from the EU took place on January
31, 2020 and the UK majority government is expected to complete
Brexit even if no formal withdrawal agreement is in place with the
EU by the end of the transition period running until December 31,
2020. The specific terms of the U.K. withdrawal from the EU are
still uncertain and while we do not have material operations in the
U.K. and have not experienced any material impact from Brexit on
our underlying business to date, we cannot predict its future
implications;
- 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;
- the functionalities and performance of our 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 or
suppliers;
- theft, loss, or misuse of personal data about our employees,
customers, or other third parties, and breaches of global and local
privacy legislation, including the EU’s General Data Protection
Regulation (“GDPR”);
- the impact of intellectual property (“IP”) 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 such as the novel coronavirus
COVID-19 in locations where we, our customers or our suppliers
operate;
- industry changes resulting from vertical and horizontal
consolidation among our suppliers, competitors, and customers;
and
- the 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.
Such forward-looking statements are subject to
various risks and uncertainties, which may cause actual results and
performance of our business to differ materially and adversely from
the forward-looking statements. Certain forward-looking statements
can be identified by the use of forward looking terminology, such
as “believes,” “expects,” “may,” “are expected to,” “should,”
“would be,” “seeks” or “anticipates” or similar expressions or the
negative thereof or other variations thereof or comparable
terminology, or by discussions of strategy, plans or
intentions.
Some of these risk factors are set forth and are
discussed in more detail in “Item 3. Key Information — Risk
Factors” included in our Annual Report on Form 20-F for the year
ended December 31, 2019, as filed with the SEC on February 26,
2020. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in this
release as anticipated, believed, or expected. We do not intend,
and do not assume any obligation, to update any industry
information or forward-looking statements set forth in this release
to reflect subsequent events or circumstances.
About STMicroelectronics
ST is a global semiconductor leader delivering
intelligent and energy-efficient products and solutions that power
the electronics at the heart of everyday life. ST’s products are
found everywhere today, and together with our customers, we are
enabling smarter driving and smarter factories, cities and homes,
along with the next generation of mobile and Internet of Things
devices.
By getting more from technology to get more from
life, ST stands for life.augmented.
In 2019, the Company’s net revenues were $9.56
billion, serving more than 100,000 customers worldwide.Further
information can be found at www.st.com.
For further information, please contact:
INVESTOR RELATIONS:Céline BerthierGroup VP,
Investor RelationsTel: +41 22 929 58 12celine.berthier@st.com
MEDIA RELATIONS:Alexis
Breton
Corporate External CommunicationsSTMicroelectronics Tel: +
33 6 59 16 79 08 alexis.breton@st.com
STMicroelectronics N.V. |
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
|
(in millions of U.S. dollars, except per share data
($)) |
|
|
|
|
|
|
Three months ended |
|
March 28, |
March 30, |
|
2020 |
2019 |
|
(Unaudited) |
(Unaudited) |
|
|
|
Net sales |
2,228 |
2,071 |
Other revenues |
3 |
5 |
NET REVENUES |
2,231 |
2,076 |
Cost of sales |
(1,385) |
(1,258) |
GROSS PROFIT |
846 |
818 |
Selling, general and administrative |
(270) |
(272) |
Research and development |
(375) |
(368) |
Other income and expenses, net |
35 |
33 |
Impairment, restructuring charges and other related closure
costs |
(5) |
- |
Total operating expenses |
(615) |
(607) |
OPERATING INCOME |
231 |
211 |
Interest income, net |
1 |
2 |
Other components of pension benefit costs |
(3) |
(3) |
Income (loss) on equity-method investments |
- |
1 |
INCOME BEFORE INCOME TAXES AND NONCONTROLLING
INTEREST |
229 |
211 |
Income tax expense |
(39) |
(32) |
NET INCOME |
190 |
179 |
Net income attributable to noncontrolling interest |
2 |
(1) |
NET INCOME ATTRIBUTABLE TO PARENT COMPANY |
192 |
178 |
|
|
|
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
0.22 |
0.20 |
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
0.21 |
0.20 |
|
|
|
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING
DILUTED EPS |
916.7 |
903.0 |
|
|
|
STMicroelectronics N.V. |
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
|
|
As at |
March 28, |
December 31, |
March 30, |
In millions of U.S. dollars |
2020 |
2019 |
2019 |
|
(Unaudited) |
(Audited) |
(Unaudited) |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
2,028 |
2,597 |
2,307 |
Restricted cash |
10 |
10 |
60 |
Short-term deposits |
537 |
4 |
- |
Marketable securities |
135 |
133 |
331 |
Trade accounts receivable, net |
1,294 |
1,380 |
1,102 |
Inventories |
1,772 |
1,691 |
1,765 |
Other current assets |
500 |
442 |
454 |
Total current assets |
6,276 |
6,257 |
6,019 |
Goodwill |
175 |
162 |
163 |
Other intangible assets, net |
298 |
299 |
291 |
Property, plant and equipment, net |
4,022 |
4,007 |
3,740 |
Non-current deferred tax assets |
694 |
695 |
659 |
Long-term investments |
11 |
11 |
62 |
Other non-current assets |
454 |
437 |
455 |
|
5,654 |
5,611 |
5,370 |
Total assets |
11,930 |
11,868 |
11,389 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Short-term debt |
171 |
173 |
173 |
Trade accounts payable |
960 |
950 |
895 |
Other payables and accrued liabilities |
856 |
831 |
950 |
Dividends payable to stockholders |
6 |
58 |
6 |
Accrued income tax |
63 |
52 |
44 |
Total current liabilities |
2,056 |
2,064 |
2,068 |
Long-term debt |
1,871 |
1,899 |
2,015 |
Post-employment benefit obligations |
436 |
445 |
381 |
Long-term deferred tax liabilities |
36 |
19 |
14 |
Other long-term liabilities |
321 |
330 |
298 |
|
2,664 |
2,693 |
2,708 |
Total liabilities |
4,720 |
4,757 |
4,776 |
Commitment and contingencies |
|
|
|
Equity |
|
|
|
Parent company stockholders' equity |
|
|
|
Common stock (preferred stock: 540,000,000 shares authorized, not
issued; common stock: Euro 1.04 nominal value, 1,200,000,000 shares
authorized, 911,204,420 shares issued, 889,271,991 shares
outstanding) |
1,157 |
1,157 |
1,157 |
Capital surplus |
3,029 |
2,992 |
2,881 |
Retained earnings |
2,938 |
2,747 |
2,169 |
Accumulated other comprehensive income |
410 |
475 |
474 |
Treasury stock |
(390) |
(328) |
(202) |
Total parent company stockholders' equity |
7,144 |
7,043 |
6,479 |
Noncontrolling interest |
66 |
68 |
134 |
Total equity |
7,210 |
7,111 |
6,613 |
Total liabilities and equity |
11,930 |
11,868 |
11,389 |
|
|
|
|
|
|
|
|
STMicroelectronics N.V. |
|
|
|
|
|
|
|
SELECTED CASH FLOW DATA |
|
|
|
|
|
|
|
Cash Flow Data (in US$ millions) |
Q1 2020 |
Q4 2019 |
Q1 2019 |
|
|
|
|
Net Cash from operating activities |
399 |
775 |
341 |
Net Cash used in investing activities |
(821) |
(314) |
(408) |
Net Cash from (used in) financing activities |
(143) |
(264) |
173 |
Net Cash increase (decrease) |
(569) |
202 |
101 |
|
|
|
|
Selected Cash Flow Data (in US$ millions) |
Q1 2020 |
Q4 2019 |
Q1 2019 |
|
|
|
|
Depreciation & amortization |
211 |
220 |
206 |
Net payment for Capital expenditures |
(266) |
(236) |
(322) |
Dividends paid to stockholders |
(53) |
(53) |
(54) |
Change in inventories, net |
(96) |
112 |
(215) |
|
|
|
|
AppendixSTMicroelectronicsSupplemental
Financial Information
|
Q1 2020 |
Q4 2019 |
Q3 2019 |
Q2 2019 |
Q1 2019 |
Net Revenues By Market Channel (%) |
|
|
|
|
|
Total OEM |
75% |
72% |
72% |
70% |
66% |
Distribution |
25% |
28% |
28% |
30% |
34% |
|
|
|
|
|
|
€/$ Effective Rate |
1.11 |
1.12 |
1.14 |
1.14 |
1.16 |
|
|
|
|
|
|
Product Group Data (US$ m) |
|
|
|
|
|
Automotive & Discrete Group (ADG) |
|
|
|
|
|
- Net Revenues |
753 |
924 |
894 |
885 |
903 |
- Operating Income |
23 |
113 |
76 |
73 |
95 |
Analog, MEMS & Sensors Group (AMS) |
|
|
|
|
|
- Net Revenues |
852 |
1,085 |
968 |
694 |
552 |
- Operating Income |
177 |
281 |
198 |
74 |
43 |
Microcontrollers & Digital ICs Group
(MDG) |
|
|
|
|
|
- Net Revenues |
623 |
742 |
688 |
591 |
617 |
- Operating Income |
71 |
119 |
108 |
45 |
83 |
Others (a) |
|
|
|
|
|
- Net Revenues |
3 |
3 |
3 |
3 |
4 |
- Operating Income (Loss) |
(40) |
(53) |
(46) |
4 |
(10) |
Total |
|
|
|
|
|
- Net Revenues |
2,231 |
2,754 |
2,553 |
2,173 |
2,076 |
- Operating Income |
231 |
460 |
336 |
196 |
211 |
(a) Net revenues of Others includes revenues from sales
assembly services and other revenue. Operating income (loss) of
Others includes items such as unused capacity charges, reduced
manufacturing activity due to COVID-19, impairment, restructuring
charges and other related closure costs, management reorganization
costs, phase out and start-up costs, and other unallocated expenses
such as: strategic or special research and development programs,
certain corporate-level operating expenses, patent claims and
litigations, and other costs that are not allocated to product
groups, as well as operating earnings of other products. Others
includes: |
(US$ m) |
Q1 2020 |
Q4 2019 |
Q3 2019 |
Q2 2019 |
Q1 2019 |
Unused Capacity Charges |
34 |
29 |
28 |
7 |
1 |
Impairment & Restructuring Charges |
5 |
3 |
- |
2 |
- |
(Appendix –
continued)STMicroelectronicsSupplemental
Non-U.S. GAAP Financial InformationU. S. GAAP –
Non-U.S. GAAP Reconciliation
The supplemental non-U.S. GAAP information
presented in this press release is unaudited and subject to
inherent limitations. Such non-U.S. GAAP information is not based
on any comprehensive set of accounting rules or principles and
should not be considered as a substitute for U.S. GAAP
measurements. Also, our supplemental non-U.S. GAAP financial
information may not be comparable to similarly titled non-U.S. GAAP
measures used by other companies. Further, specific limitations for
individual non-U.S. GAAP measures, and the reasons for presenting
non-U.S. GAAP financial information, are set forth in the
paragraphs below. To compensate for these limitations, the
supplemental non-U.S. GAAP financial information should not be read
in isolation, but only in conjunction with our consolidated
financial statements prepared in accordance with U.S. GAAP.
The Company believes that these non-U.S. GAAP
financial measures provide useful information for investors and
management because they offer, when read in conjunction with the
Company’s U.S. GAAP financials, (i) the ability to make more
meaningful period-to-period comparisons of the Company’s on-going
operating results, (ii) the ability to better identify trends
in the Company’s business and perform related trend analysis, and
(iii) to facilitate a comparison of the Company’s results of
operations against investor and analyst financial models and
valuations, which may exclude these items.
Net Financial Position
(non-U.S. GAAP measure)
Net Financial Position, not a U.S. GAAP measure,
represents the difference between our total liquidity and our total
financial debt. Our total financial resources include cash and cash
equivalents, marketable securities, restricted cash and short-term
deposits, and our total financial debt includes short-term debt,
including bank overdrafts, and long-term debt, as represented in
our Consolidated Balance Sheets.
We believe our Net Financial Position provides
useful information for investors and management because it gives
evidence of our global position either in terms of net indebtedness
or net cash by measuring our capital resources based on cash and
cash equivalents, restricted cash, short-term deposits and
marketable securities and the total level of our financial
indebtedness. In addition, our definition of Net Financial Position
may differ from definitions used by other companies and therefore
comparability may be limited.
(US$ m) |
Mar 28 2020 |
Dec 31 2019 |
Sep 28 2019 |
Jun 29 2019 |
Mar 30 2019 |
Cash and cash equivalents |
2,028 |
2,597 |
2,345 |
2,119 |
2,307 |
Restricted cash |
10 |
10 |
60 |
60 |
60 |
Short term deposits |
537 |
4 |
- |
- |
- |
Marketable securities |
135 |
133 |
133 |
333 |
331 |
Total liquidity |
2,710 |
2,744 |
2,538 |
2,512 |
2,698 |
Short-term debt |
(171) |
(173) |
(171) |
(174) |
(173) |
Long-term debt(1) |
(1,871) |
(1,899) |
(2,019) |
(2,030) |
(2,015) |
Total financial debt |
(2,042) |
(2,072) |
(2,190) |
(2,204) |
(2,188) |
Net Financial Position |
668 |
672 |
348 |
308 |
510 |
(1) Long-term debt contains standard conditions but does not
impose minimum financial ratios. Also, committed credit facilities
for $1.1 billion equivalent, including a new €500 million long-term
line with the European Investment Bank, are currently undrawn.
(Appendix –
continued)STMicroelectronics
Free Cash Flow
(non-U.S. GAAP measure)
Free Cash Flow, which is a non-U.S. GAAP
measure, is defined as (i) net cash from operating activities plus
(ii) net cash used in investing activities, excluding payment for
purchases (and proceeds from matured) of marketable securities and
net investment in short-term deposits, which are considered as
temporary financial investments. The result of this definition is
ultimately net cash from operating activities plus payment for
purchase and proceeds from sale of tangible, intangible and
financial assets, proceeds received in the sale of businesses and
cash paid for business acquisitions.
We believe Free Cash Flow provides useful
information for investors and management because it measures our
capacity to generate cash from our operating and investing
activities to sustain our operations. Free Cash Flow does not
represent total cash flow since it does not include the cash flows
generated by or used in financing activities.
Free Cash Flow reconciles with the total cash
flow and the net cash increase (decrease) by including the payment
for purchases (and proceeds from the matured) of marketable
securities and net investment in short-term deposits, the net cash
from (used in) financing activities and the effect of changes in
exchange rates. In addition, our definition of Free Cash Flow may
differ from definitions used by other companies.
(US$ m) |
Q1 2020 |
Q4 2019 |
Q3 2019 |
Q2 2019 |
Q1 2019 |
Net cash from operating activities |
399 |
775 |
429 |
324 |
341 |
Net cash used in investing activities |
(821) |
(314) |
(59) |
(391) |
(408) |
Payment for purchase and proceeds from matured marketable
securities and net investment in short-term deposits |
535 |
- |
(200) |
- |
- |
Free Cash Flow |
113 |
461 |
170 |
(67) |
(67) |
- C2954C - Q120 PR- FINAL FOR PUBLICATION
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