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STMicroelectronics reports 2017 Fourth Quarter financial result

STMicroelectronics has reported financial results for the fourth quarter and full year ended December 31, 2017. The Fourth quarter net revenues totaled $2.47 billion, gross margin was 40.6%, and net income was $308 million or $0.34 diluted earnings per share.

 

“ST delivered a strong finish to 2017. Fourth quarter net revenues were up 32.6% year-over-year with double-digit growth across all product groups, gross margin reached 40.6%, and operating margin was at 16.5%,” commented Carlo Bozotti, STMicroelectronics President & CEO. “On a sequential basis, fourth quarter revenues grew significantly better than seasonal at 15.5% and were 200 basis points above the high-end of our guidance, mainly thanks to higher than expected revenues in Imaging products and Microcontrollers.

 

In 2017 net revenues increased 19.7% on strong growth across all product groups and geographies; gross margin expanded 400 basis points, operating margin increased 880 basis points to 11.9% and net income improved by $637 million to $802 million.

 

“The year also marked the 30th anniversary of the formation of ST. We celebrate this milestone with a solid product leadership in Internet of Things, Smartphones, Industrial and Smart Driving applications, a strong market position with major customers and in Distribution, a world-class team of engaged employees, a sustainable financial performance and an industry-leading return on invested capital,” said Carlo.

Financial Summary (US$ Million)

U.S. GAAP

(Million US$)

Q4 2017

Q3 2017

Q4

2016

FY 2017

FY 2016

Net Revenues

2,466

2,136

1,859

8,347

6,973

Gross Margin

40.6%

39.5%

37.5%

39.2%

35.2%

Operating Income

408

278

129

993

214

Net Income attributable to parent company

308

236

112

802

165

Net cash from operating activities

587

463

378

1,707

1,043

 

Non-U.S. GAAP(1)

(Million US$)

Q4

2017

Q3

2017

Q4

2016

FY

2017

FY

2016

Operating Income before impairment & restructuring charges

428

292

153

1,038

307

Free cash flow

145

80

135

338

316

Net financial position

489

446

513

489

513

 

Product Group Revenues

(Million US$)

Q4

2017

Q3

2017

Q4

2016

FY

2017

FY

2016

Automotive and Discrete Group (ADG)

821