STMicroelectronics Turns Losses into Profit for 14 Years of Q2 Profit

STMicroelectronics announced its financial report for the second quarter of 2014. Operating profits turned profitable and ended the 12 consecutive quarterly losses. Sales were $1.864 billion, a year-on-year decrease of 9%, operating profit of $98 million and net profit of $38 million. Net profit has been loss for 11 consecutive quarters before.

According to Carlo Bozotti, CEO of STMicroelectronics, "This is due to the favorable momentum in markets such as macroeconomics, industry and automotive." The operating profit of the “Sensors, Power Devices and Automotive Products” business was US$126 million, which was three times that of the same period of last year. In the "embedded processing" business, general-purpose MCUs recorded the highest sales record for five consecutive quarters. The operating profit of this business has changed from a deficit of more than $100 million in the same period of the previous year to a profit of $14 million.

In terms of business in each region, the EMEA (Europe, Middle East and Africa) region performed well and sales increased by 8.3% from the previous quarter (January to March), which was mainly due to the increase in sales in the industrial and automotive sectors.

The forecast for the third quarter of 2014 is that the sales volume increased by about 3% (about 1.92 billion U.S. dollars), and the gross profit rate was about 34.4%. In addition, sales in the third quarter of 2013 were US$2.013 billion and gross profit margin was 32.4%.