STMicroelectronics closed 2012 with a quarter in the red, recording a loss of $428 million on revenues of $2,16 billion. The gross margin stood instead at 32,3%. This is what we read in a press release from the semiconductor company.
“In the fourth quarter, the results in terms of both revenues and gross margin were above the intermediate value of the guidance despite the persistent weakness of the semiconductor market – said the CEO of the company, Carlo Bozotti -. In full 2012 we improved our net financial position compared to 2011 despite the significant liquidity absorption by ST-Ericsson and the impact of a weak market situation. We managed to end the year with considerable financial flexibility and a solid cash position, while distributing to shareholders a dividend at the same level as in 2011”.
The net loss attributable to the parent company was $428 million, primarily due to a $544 million impairment charge on goodwill and other intangible assets of wireless as a result of the company's decision to exit ST-Ericsson joint venture after the transition period.
In the whole of 2012, the loss of Stm was equal to 1,16 billion dollars, more than expected by analysts, due to the heavy devaluations it had to face. The previous year had closed with a net profit of 650 million. Loss per share was $1,31, while estimates were for just 31 cents. Turnover dropped by 12,8% to 8,49 billion, substantially in line with forecasts.
Gross profit and gross margin decreased 22% to $2,78 billion and 390 basis points to 32,8%, respectively. The operating loss was 2,08 billion against a profit of 46 million recorded in the previous year.
Today at the opening in Piazza Affari the stock of Stm is substantially flat.
