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ST losses grow

David Manners
Wednesday 27 January 2010 12:11

STMicroelectronics reported a $1.13bn loss for 2009 compared with a 2008 loss of $786m. Revenues fell to $8.5bn in 2009 from $9.84bn in 2008.

However, Q409 saw revenues increase 13.6% on Q309 and, without taking restructuring costs into account, Q4 showed an operating profit. Q4 gross margin was 37%.

"ST's fourth quarter financial results reflect a positive finish to a very difficult year for ST, the semiconductor industry and the global economy", said ST CEO Carlo Bozotti.

ST increased its net cash to $420m and is three quarters of the way through a programme to lower costs by $1bn by mid-2010.

Q409 showed growth on Q309 in all ST's markets with computer increasing by 22%, industrial by 19%, automotive by 19%, consumer by 12% and telecom by 1%. Q409 compared to Q408 saw growth in all ST's markets except for consumer and industrial, which were down by 11% and 7%, respectively. Automotive was up by 23%, telecom by 17% and computer by 37%.

ST had Q4 restructuring and impairment charges of $96m, of which $61 million are related to ST-Ericsson. ST posted restructuring and impairment charges of $53m in Q309 and of $91m in Q408.

For Q1 1010, Bozotti said: "We expect to register a sequential net revenue decrease between about -7% and -13%." He also said he also expects an improvement in gross margin to 37.5%.

 

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