STMicroelectronics NV (STM)
Morgan Stanley Technology, Media & Telecoms Conference
November 17, 2011 04:20 AM EST
Carlo Bozotti – President & CEO
Thank you. Carlo, CEO of STMicroelectronics, thanks for…
Good morning to everybody.
Coming today. Maybe – we should start maybe with a quick summary of what happened in Q3 for ST Micro and then we start discussing.
Yes, well, Q3 and Q4 I think we are – clearly the correction started in the second part of the second quarter, accelerated during the course of the third quarter, and is indeed important inventory corrections, but also with some weakness in the underlying demand. And I think moving into Q4, it is now a few weeks that we have seen bookings increasing a little bit. It seems it is bottoming. Our bookings in October was better than in Q3 and the bookings in November is better than in October. But I would say is still too low and is just the start of a new slope and we need to see whether this is sustainable. During Q3 it is clear that the correction was very much across he board, both geographically and also from the market segment’s point of view. So geographically we have experienced weaknesses here in Asia, certain countries in Asia, not only in Europe or in the US, but – and from a segment point of view, well fewer things were not touched, maybe tablets, communication infrastructure, servers.
But most of the things, including industrial, including consumer distribution market, they were all in question. Even automotive it was very strong in the first half of the year. We have countries where performance is pretty poor today, like in a part of Europe, not in Germany, but in a part of Europe and the growth in China in the automotive this year is 2%, 3% and of course this to be compared with last year was 30% growth. So well, let’s see. As I said, we see some better performance in booking and this is recent and we need to understand whether this is sustainable and we need more. We need a stronger positive upside at this stage.