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STMicroelectronics announced its second quarter financial report for 2024, with net revenue totaling US$3.23 billion (IT Home Note: currently about RMB 23.372 billion), down 25.3% year-on-year. Net sales revenue from OEM and agency channels decreased by 14.9% and 43.7% year-on-year, respectively. Net revenue decreased by 6.7% month-on-month, 90 basis points higher than the company's forecast median.

STMicroelectronics' gross profit in the second quarter totaled US$1.3 billion (currently about RMB 9.407 billion), down 38.9% year-on-year. The gross profit margin was 40.1%, consistent with the median forecast in STMicroelectronics' performance guidance, down 890 basis points from the same period last year, mainly due to the combined impact of product structure and sales price, as well as increased spending on idle capacity.

STMicroelectronics' second-quarter operating profit was $375 million (currently about RMB 2.713 billion), down 67.3% from $1.15 billion in the same period last year. The operating profit margin (as a percentage of net revenue) was 11.6%, down 1,490 basis points from 26.5% in the second quarter of 2023.

Analog, MEMS and Sensor Sub-Product Division (AM&S)

• Revenue fell 10.0%, mainly affected by the decline in imaging business.

• Operating profit was $144 million, down 44.5%. The operating profit margin was 12.4%, compared with 20.0% in the same period last year.

• Power and Discrete (P&D) Sub-Product Division

• Revenue fell 24.4%.

• Operating profit was $110 million, down 57.9%. The operating profit margin was 14.7%, compared with 26.4% in the same period last year.

Microcontroller Sub-Product Division (MCU)

Revenue decreased by 46.0%, mainly affected by the decline in the general-purpose microcontroller business.

Operating profit was $72 million, a decrease of 87.1%. Operating profit margin was 8.9%, compared with 37.2% in the same period last year.

Digital IC and RF Sub-Product Division (D&RF)

Although the RF business has grown, the overall revenue decreased by 7.6% due to the decline in the ADAS business.

Operating profit was $150 million, a decrease of 23.8%. Operating profit margin was 29.1%, compared with 35.2% in the same period last year.

Jean-Marc Chery, President and CEO of STMicroelectronics, said:

Second quarter net revenue was higher than the midpoint of business expectations. Although personal electronics revenue increased, automotive product revenue was lower than expected, offsetting some of the growth space. Gross margin was in line with expectations.

Net revenue in the first half of the year decreased by 21.9% year-on-year, mainly due to the decline in revenue of the Microcontroller Sub-Product Division and the Power and Discrete Devices Sub-Product Division. The operating profit margin was 13.8% and the net profit was $865 million.

Contrary to previous expectations, industrial customer orders did not pick up this quarter, and demand for automotive products also declined.

The third quarter business outlook (median) is that net revenue is expected to be $3.25 billion, a year-on-year decrease of 26.7% and a month-on-month increase of 0.6%; the gross profit margin is expected to be about 38%, including the impact of an increase of 350 basis points in idle capacity spending.

STMicroelectronics will advance the company's full-year revenue plan of $13.2 to $13.7 billion in 2024. According to this plan, the gross profit margin is expected to be about 40%.

STMicroelectronics business outlook, the median revenue guidance for the third quarter of 2024 is expected to be:

Net revenue is expected to be $3.25 billion (currently about RMB 23.516 billion), an increase of about 0.6% month-on-month, with a fluctuation of 350 basis points.

The gross profit margin is about 38%, with a fluctuation of 200 basis points.