Q4 2024 STMicroelectronics NV Earnings Call Transcript
Key Points
- STMicroelectronics NV (STM) achieved Q4 2024 financial results in line with the midpoint of their guidance, despite a challenging environment.
- The company reported strong momentum in the Chinese market for silicon carbide products, with more engagements with top Chinese carmakers than any other suppliers.
- STMicroelectronics NV (STM) introduced a new strategic collaboration with Qualcomm Technologies for the next generation of industrial and consumer IoT solutions.
- The company is on track to be carbon-neutral by 2027 and has made significant progress towards its 100% renewable energy goal.
- STMicroelectronics NV (STM) announced the construction of a new high-volume silicon carbide manufacturing facility in Catania, Italy, to enhance its manufacturing capabilities.
- Q4 2024 net revenues decreased by 22.4% year over year, with a significant decline in the Industrial and Automotive segments.
- The company's gross margin decreased to 37.7% in Q4 2024, down from 47.9% in the previous year, due to unfavorable product mix and higher unused capacity charges.
- STMicroelectronics NV (STM) faced a slowdown in the Automotive sector, particularly in Europe, with a book-to-bill ratio below 1.
- The company experienced a 63% decrease in net income for the full year 2024, reflecting a challenging market environment.
- STMicroelectronics NV (STM) had to postpone its $20 billion-plus revenue ambition plan to 2030 due to weaker demand and higher inventory levels.
Ladies and gentlemen, welcome to the STMicroelectronics full year 2024 earnings release conference call and live webcast. I'm Sandra, the Chorus Call operator. I would like to remind you that all participants are in listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. (Operator Instructions) The conference must not be recorded for publication or broadcast.
At this time, it's my pleasure to hand over to Jerome Ramel, EVP, Corporate Development and Integrated External Communications. Please go ahead, sir.
Thank you. Thank you, everyone, for joining our fourth quarter and full year 2024 financial results call. Hosting the call today is Jean-Marc Chery, ST President and Chief Executive Officer. Joining Jean-Marc on the call today are Lorenzo Grandi, President and CFO; and Marco Cassis, President, Analog, Power & Discrete, MEMS & Sensors Group and Head of ST Micro Electronics Strategy
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