STMicroelectronics 1Q Net Profit, Revenue Increased
April 22 2020 - 1:58AM
Dow Jones News
By Mauro Orru
STMicroelectronics NV said Wednesday that net profit and revenue
in the first quarter of 2020 increased year-on-year as higher sales
of its imaging products as well as growth in analog and
microcontrollers partially offset lower sales in automotive, power
discrete and digital.
The European chip maker said net profit for the quarter rose to
$192 million from $178 million the previous year, with operating
profit for the same period jumping to $231 million from $211
million.
Analysts were expecting quarterly net profit to come in at $189
million, according to FactSet.
Operating margin rose to 10.4% from 10.2%, although gross margin
fell to 37.9% from 39.4%.
First-quarter revenue climbed to $2.23 billion from $2.08
billion for the first quarter of 2019, still below the $2.36
billion which STMicroelectronics was expecting in January before
the coronavirus pandemic spread to Europe and the U.S.
Analysts polled by FactSet expected revenue of $2.28 billion for
the quarter.
"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," Chief Executive
Jean-Marc Chery said.
The company said it expects revenue of $2 billion in the second
quarter at mid-point, with a gross margin of around 34.6%, plus or
minus 200 basis points.
STMicroelectronics reduced its 2020 capex to between $1 billion
and $1.2 billion from $1.5 billion.
Mr. Chery said the company would move forward based on a plan
for 2020 revenue of between $8.8 billion and $9.5 billion.
The company said the supervisory board would propose a cut for
the 2019 dividend to $0.168 a share from $0.24 at the annual
general meeting on June 17, with the authorization to consider an
increase up to a maximum of $0.24 a share during September
2020.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
April 22, 2020 01:43 ET (05:43 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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