Previous Statements by STM
» STMicroelectronics' COO Presents at UBS Global Technology and Services Conference - Conference Call Transcript
» STMicroelectronics' CEO Discusses Q3 2011 Results - Earnings Call Transcript
» STMicroelectronics' CEO Discusses Q2 2011 Results - Earnings Call Transcript
» STMicroelectronics's CEO Discusses Q1 2011 Results - Earnings Call Transcript
So joining Carlo on the call today are, Carlo Ferro, Senior Executive Vice President and Chief Financial Officer; Carmelo Papa, Senior Executive Vice President of the Industrial and Multi-segment Sector; Philippe Lambinet, Chief Strategic Officer and Senior Executive Vice President of the Multimedia Convergence Group; Jean-Marc Chery, Senior Executive Vice President, Manufacturing & Technology R&D.This call is being broadcast live over the web and can be accessed through ST’s website. A replay will be available shortly after the conclusion of this call. This call will include forward-looking statements that involve risk factors that could cause ST’s results to differ materially from management’s expectations and plans. We encourage you to review the Safe Harbor statement contained in the press release that was issued with the results last night and also in ST’s most recent regulatory filings for a full description of these risk factors. As a reminder, please limit yourself to one question and a brief follow-up. And, now I’d like to turn the call over to Carlo Bozotti, ST’s President and CEO. Carlo? Carlo Bozotti Thank you, Tait, and thank you for joining us on today's conference call to discuss our 2011 business and financial results, 2012 first quarter outlook and our view on 2012 more broadly. 2011 turned out to be a very different year from the one we envisioned at the start. We all know well what changed. The natural disasters in Japan and Thailand, the semiconductor industry downturn, and the more volatility economic and market environment. In addition, we had to face the impact of major changes at one large customer which affected the company, and in a very significant manner, our joint venture ST-Ericsson. As a result, 2011 was a quite difficult period for ST-Ericsson and frankly the next several quarters will continue to be challenging for it. All of these headwinds in combination had a negative effect on our financial performance and even more on our stock price. And we will be working hard and with a sense of urgency to regain the market’s confidence as we move through 2012.
One year ago I was speaking to you about our record 2010 revenue results, key product group milestones, such as crossing the 1 billion quarterly revenue threshold for both ACCI and IMS. Market share gains, improved operating profitability, and enhanced capital position. So what can we say about our progress during 2011. First, for our fully owned business, I think we did a solid job of managing through all the headwind. We ended the year with revenues of $8.2 billion, operating income of $933 million, and an operating margin of 11.4% despite significantly lower volumes in H2 2011.Second, within this sales environment, we advanced our market position in our wholly owned businesses. While we do not have final data about 2011, we estimate to gain market share with respect to our sales market excluding wireless. And of course this is based on the most recent WSTS data that are covering through the end of November of last year. Looking in greater detail. Net revenues from our wholly owned businesses increased about 1% in total for 2011. Sales growth was led by AMM, where our MEMS sales more than doubled and drove both an increase in AMM revenue of 7.5%, and an operating profitability to a 20.3% operating margin. Within ACCI, we saw strong growth in automotive as well as imaging. This was offset by particularly weak market conditions in consumer and from our planned exit from the hard disk drive system and chip. In total, ACCI revenues were lower by a little over 1% and the operating margin was 8.9%. PDP had a tougher year due to a specific situation at one customer as we have discussed, and the softer industry conditions, especially in the second half, leading to a 6% decrease in its sales and 2 points decrease in its operating income to 11.2%. Third, we are benefitting from our investment in R&D and capacity additions. 2010 was a record year for our automotive applications and MEMS. And 2011 was a year of record revenues for both our automotive applications and MEMS products once again. Read the rest of this transcript for free on seekingalpha.com