ST Plans To Re-Elect CEO; Appoints COO.

STMicroelectronics had a loss of $24 million in Q1 on revenues of $1.83 billion. It has made Jean-Marc Chery COO and has put down a resolution for its June 13 AGM that CEO Carlo Bozotti be re-appointed for another three year term.

The narrowing loss puts ST on track for its planned return to profitability in 2014. It aims to have 10% operating margins by mid-2015.

For Q2, the company expects a 2% increase in revenues and 33.6% gross margin compared to 32.8% in Q1.

 

Tags: stmicroelectronics

Related Tech News

10 Comments

  1. david manners
    May 07, 2014 08:07

    I must say I saw it rather differently, Anon, by becoming COO in addition to CTO and Chief Manufacturing Officer he is taking over more of the reins of power. Whether or not this is in preparation for a vacancy in the top job, I wouldn’t know.

  2. Anon
    May 07, 2014 07:36

    Seems one more French casualty .. JM Chery taking COO way out.

  3. david manners
    April 30, 2014 07:35

    Ah Yes Jack I noticed the repeated, rather plaintive, comment about the Nano2017 grants. Bit like Billy Bunter’s postal order. And, like you, I wondered if the delay in paying the grants was Neelie’s reaction to Bozo saying he’d rather manufacture in Asia. Kick and ass seem the appropriate words here.

  4. Jack
    April 30, 2014 07:29

    Bozo is still waiting for the approval from EU. “Importantly, we have not yet benefited from the Nano2017 R&D grants, which are now expected in the second quarter, pending European Union approval.”
    Bozo is having hard time to convince Kroos after his comment on cutting manufacturing in EU and moving them to Asia.

  5. david manners
    April 29, 2014 16:08

    Oh yes, Dave, they’ll definitely have to pay him a lot more if they want to get him to work hard enough to improve ST’s performance.

  6. Dave
    April 29, 2014 14:54

    Is Bozo the new ” Chosen One”? No doubt an increased salary, bonus and retention package is in order to prevent ST losing him to Manchester United.

  7. david manners
    April 29, 2014 11:29

    Oh yes, Terry, the cronies need Bozo to keep the merry-go-round revolving. A less amenable CEO might upset the Cosy Club. I don’t know if it’s up to the shareholders or if the ‘golden shares’ held by the French and Italian governments give them the final choice.

  8. Terry
    April 29, 2014 11:14

    Guess the risk was that if they chose anyone except Bozo then the pension pots of his cronies in senior management would be less stuffed with gold. Only hope is that the shareholders see it differently, as there’s surely nothing in it for them.

  9. david manners
    April 29, 2014 08:21

    I know Jack. To meet these financial profitability metrics the company is simply shrinking itself. Another 3 years of Bozo will see ST very diminished and, if it spins off digital – no more French R&D lob-outs. It’s a sad strategy of cuts and shrinks – R&D was 29% down at a pitiful $328m and net cash is falling fast – down $100m on the quarter to $621m. What a mess.

  10. Jack
    April 29, 2014 07:58

    With Q1 result out at $1.8bn and Q2 guidance is not far off from that, we should expect FY2014 financial result to be at $7bn which is another blow from last year revenue of $8bn.
    With Bozo still at helm for next three years, will we see another carve out from ST especially in Digital group?

Share your knowledge - Leave a comment