|
·
|
The
distribution of a cash dividend of $0.12 per common share, to be paid in
four equal installments, on May 25, 2009, August 24, 2009, November 23,
2009 and February 22, 2010. Payment of an installment will be made to
those deriving their rights from our common shares at the aforementioned
dates;
|
|
·
|
The
reappointment for a three-year term, expiring at the 2012 Annual General
Meeting, for the following members of the Supervisory Board: Mr. Doug Dunn
and Dr. Didier Lamouche; and
|
|
·
|
The
maximum number of “restricted” Share Awards under our existing 5-year
Employee Unvested Share Award Plan (2008-2012) of 30,500,000, which
includes any Unvested Stock Awards granted to our President and CEO as
part of his compensation, with the maximum number of “restricted” shares
in 2009 to be 6,100,000.
|
|
·
|
Automotive
Consumer Computer and Communication Infrastructure Product Groups
(“ACCI”), comprised of four product
lines:
|
|
o
|
Home
Entertainment & Displays
(“HED”);
|
|
o
|
Automotive
Products Group (“APG”);
|
|
o
|
Computer
and Communication Infrastructure (“CCI”);
and
|
|
o
|
Imaging
(“IMG”), starting January 1, 2009.
|
|
·
|
Industrial
and Multisegment Products Sector (“IMS”), comprised
of:
|
|
o
|
Analog
Power and Micro-Electro-Mechanical Systems (“APM”);
and
|
|
o
|
Microcontrollers,
non-Flash, non-volatile Memory and Smart Card products
(“MMS”).
|
|
·
|
Wireless
Segment, comprised of four product
lines:
|
|
o
|
Wireless
Multi Media (“WMM”);
|
|
o
|
Connectivity
& Peripherals (“C&P”);
|
|
o
|
Cellular
Systems (“CS”); and
|
|
o
|
Ericsson
Mobile Platforms (“EMP”), in which, since February 3, 2009, we report the
portion of sales and operating results of ST-Ericsson as consolidated in
our revenue and operating results.
|
(unaudited)
|
||||||||
Three
Months Ended
|
||||||||
March
28, 2009
|
March
30, 2008
|
|||||||
(in
millions)
|
||||||||
Net
revenues by product segments:
|
||||||||
Automotive
Consumer Computer and Communication Infrastructure Product Groups
(ACCI)
|
$ | 627 | $ | 1,045 | ||||
Industrial
and Multi-segment Products Sector (IMS)
|
499 | 772 | ||||||
Wireless
|
518 | 348 | ||||||
Others(1)
|
16 | 14 | ||||||
Flash
Memories Group (FMG)
|
- | 299 | ||||||
Total
consolidated net revenues
|
$ | 1,660 | $ | 2,478 |
(unaudited)
|
||||||||
Three
Months Ended
|
||||||||
March
28, 2009
|
March
30, 2008
|
|||||||
(in
millions)
|
||||||||
Net
revenues by product lines:
|
||||||||
Home
Entertainment & Displays (“HED”)
|
$ | 180 | $ | 250 | ||||
Automotive
Products Group (“APG”)
|
190 | 383 | ||||||
Computer
and Communication Infrastructure (“CCI”)
|
168 | 284 | ||||||
Imaging
(“IMG”)
|
89 | 121 | ||||||
Others
|
- | 7 | ||||||
Automotive
Consumer Computer and Communication Infrastructure Product Groups
(“ACCI”)
|
627 | 1,045 | ||||||
Analog
Power and Micro-Electro-Mechanical Systems (“APM”)
|
351 | 562 | ||||||
Microcontrollers,
non-Flash, non-volatile Memory and Smartcard products
(“MMS”)
|
148 | 210 | ||||||
Industrial
and Multisegment Products Sector (“IMS”)
|
499 | 772 | ||||||
Wireless
Multi Media (“WMM”)
|
247 | 296 | ||||||
Connectivity
& Peripherals (“C&P”)
|
97 | 52 | ||||||
Cellular
Systems (“CS”) (1)
|
130 | - | ||||||
Ericsson
Mobile Platforms (“EMP”)
|
44 | - | ||||||
Wireless
|
518 | 348 | ||||||
Others
|
16 | 14 | ||||||
Flash
Memories Group (“FMG”)
|
- | 299 | ||||||
Total
consolidated net revenues
|
$ | 1,660 | $ | 2,478 |
(1)
|
Cellular
Systems includes the largest part of the revenues contributed by NXP
Wireless and, as such, there are no comparable numbers available for the
first quarter of 2008. Connectivity & Peripherals also partly
benefited from the NXP wireless
contribution.
|
(unaudited)
|
||||||||
Three
Months Ended
|
||||||||
March
28, 2009
|
March
30, 2008
|
|||||||
(in
millions)
|
||||||||
Operating income (loss) by
product segments (1):
|
||||||||
Automotive
Consumer Computer and Communication Infrastructure Product Groups
(ACCI)
|
$ | (89 | ) | $ | 17 | |||
Industrial
and Multisegment Products Sector (IMS)
|
(32 | ) | 90 | |||||
Wireless
|
(139 | ) | (10 | ) | ||||
Others(2)
|
(133 | ) | (201 | ) | ||||
Flash
Memories Group (FMG)
|
- | 16 | ||||||
Total
consolidated operating income (loss)
|
$ | (393 | ) | $ | (88 | ) |
(unaudited)
|
||||||||
Three
Months Ended
|
||||||||
March
28, 2009
|
March
30, 2008
|
|||||||
(as
percentages of net revenues)
|
||||||||
Operating
income (loss) by product segments:
|
||||||||
Automotive
Consumer Computer and Communication Infrastructure Product Groups (ACCI)
(1)
|
(14.2 | )% | 1.6 | % | ||||
Industrial
and Multi-segment Products Sector (IMS) (1)
|
(6.4 | ) | 11.7 | |||||
Wireless
(1)
|
(26.8 | ) | (2.9 | ) | ||||
Others(2)
|
— | — | ||||||
Flash
Memories Group (FMG) (1)
|
— | 5.4 | % | |||||
Total
consolidated operating income (loss)(3)
|
(23.7 | )% | (3.6 | )% |
(unaudited)
|
||||||||
Three
Months Ended
|
||||||||
March
28, 2009
|
March
30, 2008
|
|||||||
(in
millions)
|
||||||||
Reconciliation
to consolidated operating income (loss):
|
||||||||
Total
operating income (loss) of product segments
|
$ | (260 | ) | $ | 113 | |||
Strategic
and other research and development programs
|
(5 | ) | (1 | ) | ||||
Acquired
In-Process R&D
|
- | (21 | ) | |||||
Start-up
costs
|
(21 | ) | (7 | ) | ||||
Impairment,
restructuring charges and other related closure costs
|
(56 | ) | (183 | ) | ||||
Unused
capacity charges
|
(9 | ) | - | |||||
Tools
write-off
|
(16 | ) | - | |||||
Consulting
fees
|
(7 | ) | - | |||||
Other
non-allocated provisions(1)
|
(19 | ) | 11 | |||||
Total
operating loss Others
|
(133 | ) | (201 | ) | ||||
Total
consolidated operating income (loss)
|
$ | (393 | ) | $ | (88 | ) |
(unaudited)
|
||||||||
Three
Months Ended
|
||||||||
March
28, 2009
|
March
30, 2008
|
|||||||
(in
millions)
|
||||||||
Net
Revenues by Location of Order Shipment(1)(2)
|
||||||||
EMEA
|
$ | 539 | $ | 787 | ||||
North
America
|
197 | 344 | ||||||
Asia
Pacific
|
478 | 595 | ||||||
Greater
China
|
361 | 628 | ||||||
Japan
|
85 | 124 | ||||||
Total
|
$ | 1,660 | $ | 2,478 |
(unaudited)
|
||||||||
Three
Months Ended
|
||||||||
March
28, 2009
|
March
30, 2008
|
|||||||
(as
percentages of net revenues)
|
||||||||
Net
Revenues by Location of Order Shipment(1)(2)
|
||||||||
EMEA
|
32.4 | % | 31.8 | % | ||||
North
America(2)
|
11.9 | 13.9 | ||||||
Asia
Pacific
|
28.8 | 24.0 | ||||||
Greater
China
|
21.8 | 25.3 | ||||||
Japan
|
5.1 | 5.0 | ||||||
Total
|
100.0 | % | 100.0 | % | ||||
Net
Revenues by Market Segment Application(3):
|
||||||||
Automotive
|
12 | % | 15 | % | ||||
Consumer
|
14 | 14 | ||||||
Computer
|
11 | 12 | ||||||
Telecom
|
43 | 32 | ||||||
Industrial
and Other
|
8 | 8 | ||||||
Distribution
|
12 | 19 | ||||||
Total
|
100.0 | % | 100.0 | % |
(unaudited)
|
||||||||
Three
Months Ended
|
||||||||
March
28, 2009
|
March
30, 2008
|
|||||||
(as
percentage of net revenues)
|
||||||||
Net
sales
|
99.8 | % | 99.3 | % | ||||
Other
revenues
|
0.2 | 0.7 | ||||||
Net
revenues
|
100.0 | 100.0 | ||||||
Cost
of sales
|
(73.7 | ) | (63.7 | ) | ||||
Gross
profit
|
26.3 | 36.3 | ||||||
Selling,
general and administrative
|
(16.9 | ) | (12.3 | ) | ||||
Research
and development
|
(33.6 | ) | (20.5 | ) | ||||
Other
income and expenses, net
|
3.8 | 0.4 | ||||||
Impairment,
restructuring charges and other related closure costs
|
(3.3 | ) | (7.4 | ) | ||||
Operating
loss
|
(23.7 | ) | (3.6 | ) | ||||
Other-than-temporary
impairment charge on financial assets
|
(3.5 | ) | (1.2 | ) | ||||
Interest
income, net
|
0.1 | 0.8 | ||||||
Loss
on sale of financial assets
|
(0.5 | ) | - | |||||
Earnings
(loss) on equity investments
|
(14.0 | ) | 0.0 | |||||
Loss
before income taxes and noncontrolling interests
|
(41.6 | ) | (3.9 | ) | ||||
Income
tax benefit
|
5.7 | 0.6 | ||||||
Loss
before noncontrolling interests
|
(35.9 | ) | (3.3 | ) | ||||
Net
loss (income) attributable to noncontrolling interest
|
3.3 | (0.1 | ) | |||||
Net
loss attributable to parent company
|
(32.6 | )% | (3.4 | )% |
Three
Months Ended
|
%
Variation
|
|||||||||||||||||||
March
28, 2009
(unaudited)
|
Dec
31, 2008
(unaudited)
|
March
30, 2008
(unaudited)
|
Sequential
|
Year-Over-Year
|
||||||||||||||||
(in
millions)
|
||||||||||||||||||||
Net
sales
|
$ | 1,657 | $ | 2,264 | $ | 2,461 | (26.8 | )% | (32.7 | )% | ||||||||||
Other
revenues
|
$ | 3 | $ | 12 | $ | 17 | — | — | ||||||||||||
Net
revenues
|
$ | 1,660 | $ | 2,276 | $ | 2,478 | (27.1 | )% | (33.0 | )% |
Three
Months Ended
|
%
Variation
|
|||||||||||||||||||
March
28, 2009
(unaudited)
|
Dec
31, 2008
(unaudited)
|
March
30, 2008
(unaudited)
|
Sequential
|
Year-Over-Year
|
||||||||||||||||
(In
millions)
|
||||||||||||||||||||
Cost
of sales
|
$ | (1,223 | ) | $ | (1,454 | ) | $ | (1,579 | ) | 15.9 | % | 22.6 | % | |||||||
Gross
profit
|
$ | 437 | $ | 822 | $ | 899 | (46.8 | )% | (51.4 | )% | ||||||||||
Gross
margin (as a percentage of net revenues)
|
26.3 | % | 36.1 | % | 36.3 | % | — | — |
Three
Months Ended
|
%
Variation
|
|||||||||||||||||||
March
28, 2009
(unaudited)
|
Dec
31, 2008
(unaudited)
|
March
30, 2008
(unaudited)
|
Sequential
|
Year-Over-Year
|
||||||||||||||||
(In
millions)
|
||||||||||||||||||||
Selling,
general and administrative expenses
|
$ | (280 | ) | $ | (304 | ) | $ | (304 | ) | 8.0 | % | 8.0 | % | |||||||
As
percentage of net revenues
|
(16.9 | )% | (13.4 | )% | (12.3 | )% | — | — |
Three
Months Ended
|
%
Variation
|
|||||||||||||||||||
March
28, 2009
(unaudited)
|
Dec
31, 2008
(unaudited)
|
March
30, 2008
(unaudited)
|
Sequential
|
Year-Over-Year
|
||||||||||||||||
(In
millions)
|
||||||||||||||||||||
Research
and development expenses
|
$ | (557 | ) | $ | (572 | ) | $ | (509 | ) | 2.5 | % | (9.7 | )% | |||||||
As
percentage of net revenues
|
(33.6 | )% | (25.1 | )% | (20.5 | )% | — | — |
Three
Months Ended
|
||||||||||||
March
28, 2009
(unaudited)
|
Dec
31, 2008
(unaudited)
|
March
30, 2008
(unaudited)
|
||||||||||
(In
millions)
|
||||||||||||
Research
and development funding
|
$ | 72 | $ | 19 | $ | 19 | ||||||
Start-up/phase-out
costs
|
(21 | ) | (7 | ) | (7 | ) | ||||||
Exchange
gain (loss) net
|
19 | - | 4 | |||||||||
Patent
litigation costs
|
(3 | ) | (3 | ) | (5 | ) | ||||||
Patent
pre-litigation costs
|
(2 | ) | (2 | ) | (3 | ) | ||||||
Gain
on sale of other non-current assets
|
- | - | 2 | |||||||||
Other,
net
|
(2 | ) | (1 | ) | (1 | ) | ||||||
Other
income and expenses, net
|
63 | 6 | 9 | |||||||||
As a
percentage of net revenues
|
3.8 | % | 0.3 | % | 0.4 | % |
Three
Months Ended
|
||||||||||||
March
28, 2009
(unaudited)
|
Dec
31, 2008
(unaudited)
|
March
30, 2008
(unaudited)
|
||||||||||
(In
millions)
|
||||||||||||
Impairment,
restructuring charges and other related closure costs
|
$ | (56 | ) | $ | (91 | ) | $ | (183 | ) | |||
As a
percentage of net revenues
|
(3.3 | )% | (4.0 | )% | (7.4 | )% |
Three
Months Ended
|
||||||||||||
March
28, 2009
(unaudited)
|
Dec
31, 2008
(unaudited)
|
March
30, 2008
(unaudited)
|
||||||||||
(In
millions)
|
||||||||||||
Operating
loss
|
$ | (393 | ) | $ | (139 | ) | $ | (88 | ) | |||
In
percentage of net revenues
|
(23.7 | )% | (6.1 | )% | (3.6 | )% |
Three
Months Ended
|
||||||||||||
March
28, 2009
(unaudited)
|
Dec
31, 2008
(unaudited)
|
March
30, 2008
(unaudited)
|
||||||||||
(In
millions)
|
||||||||||||
Operating
loss, as reported
|
$ | (393 | ) | $ | (139 | ) | $ | (88 | ) | |||
Adding
back:
|
||||||||||||
Cost
of sales: NXP inventory step-up
|
— | 31 | — | |||||||||
Research
and development: IP R&D
|
— | — | 21 | |||||||||
Impairment
and restructuring charges
|
56 | 91 | 183 | |||||||||
Operating
result, pro forma
|
$ | (337 | ) | $ | (17 | ) | $ | 116 |
Three
Months Ended
|
||||||||||||
March
28, 2009
(unaudited)
|
Dec
31, 2008
(unaudited)
|
March
30, 2008
(unaudited)
|
||||||||||
(In
millions)
|
||||||||||||
Interest
income,
net
|
$ | 1 | $ | 3 | $ | 20 |
Three
Months Ended
|
||||||||||||
March
28, 2009
(unaudited)
|
Dec
31, 2008
(unaudited)
|
March
30, 2008
(unaudited)
|
||||||||||
(In
millions)
|
||||||||||||
Other-than-temporary
impairment charges on financial assets
|
$ | (58 | ) | $ | (55 | ) | $ | (29 | ) |
Three
Months Ended
|
||||||||||||
March
28, 2009
(unaudited)
|
Dec
31, 2008
(unaudited)
|
March
30, 2008
(unaudited)
|
||||||||||
(In
millions)
|
||||||||||||
Earnings
(loss) on equity investments
|
$ | (232 | ) | $ | (204 | ) | — |
Three
Months Ended
|
||||||||||||
March
28, 2009
(unaudited)
|
Dec
31, 2008
(unaudited)
|
March
30, 2008
(unaudited)
|
||||||||||
(In
millions)
|
||||||||||||
Loss
on sale of financial assets
|
$ | (8 | ) | - | - | |||||||
Unrealized
gain on financial assets
|
- | $ | 15 | - |
Three
Months Ended
|
||||||||||||
March
28, 2009
(unaudited)
|
Dec
31, 2008
(unaudited)
|
March
30, 2008
(unaudited)
|
||||||||||
(In
millions)
|
||||||||||||
Income
tax benefit
|
$ | 95 | $ | 9 | $ | 14 |
Three
Months Ended
|
||||||||||||
March
28, 2009
(unaudited)
|
Dec
31, 2008
(unaudited)
|
March
30, 2008
(unaudited)
|
||||||||||
(In
millions)
|
||||||||||||
Net
loss (income) attributable to noncontrolling interest
|
$ | 54 | $ | 5 | $ | (1 | ) |
Three
Months Ended
|
||||||||||||
March
28, 2009
(unaudited)
|
Dec
31, 2008
(unaudited)
|
March
30, 2008
(unaudited)
|
||||||||||
(In
millions)
|
||||||||||||
Net
loss attributable to parent company
|
$ | (541 | ) | $ | (366 | ) | $ | (84 | ) | |||
As
percentage of net revenues
|
(32.6 | )% | (16.1 | )% | (3.4 | )% |
Three
Months Ended
|
||||||||
March
28,
2009
|
March
30,
2008
|
|||||||
(In
millions)
|
||||||||
Net
cash from (used in) operating activities
|
$ | (14 | ) | $ | 502 | |||
Net
cash from (used in) investing activities
|
671 | (453 | ) | |||||
Net
cash from (used in) financing activities
|
(162 | ) | 129 | |||||
Effect
of change in exchange rates
|
(24 | ) | 27 | |||||
Net
cash increase (decrease)
|
$ | 471 | $ | 205 |
Three
Months Ended
|
||||||||
March
28,
2009
|
March
30,
2008
|
|||||||
(In
millions)
|
||||||||
Net
cash from (used in) operating activities
|
$ | (14 | ) | $ | 502 | |||
Net
cash from (used in) investing activities
|
671 | (453 | ) | |||||
Payment
for purchase and proceeds from sale of marketable securities (current and
non-current), short-term deposits and restricted cash, net
|
349 | — | ||||||
Net
operating cash flow
|
$ | 1,006 | $ | 49 |
As
at
|
||||||||||||
March
28, 2009
|
December
31, 2008
|
March
30, 2008
|
||||||||||
(In
millions)
|
||||||||||||
Cash
and cash equivalents, net of bank overdrafts
|
$ | 1,477 | $ | 989 | $ | 2,060 | ||||||
Marketable
securities, current
|
988 | 651 | 1,060 | |||||||||
Restricted
cash
|
250 | 250 | 250 | |||||||||
Marketable
securities, non-current
|
184 | 242 | 339 | |||||||||
Total
financial resources
|
2,899 | 2,132 | 3,709 | |||||||||
Current
portion of long-term debt
|
(159 | ) | (123 | ) | (300 | ) | ||||||
Long-term
debt
|
(2,486 | ) | (2,554 | ) | (2,324 | ) | ||||||
Total
financial debt
|
(2,645 | ) | (2,677 | ) | (2,624 | ) | ||||||
Net
financial position
|
$ | 254 | $ | (545 | ) | $ | 1,085 |
Payments
Due by Period
|
||||||||||||||||||||||||||||||||
Total
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
Thereafter
|
|||||||||||||||||||||||||
(In
millions)
|
||||||||||||||||||||||||||||||||
Long-term
debt (including current portion)
|
$ | 2,645 | $ | 159 | $ | 1,211 | $ | 115 | $ | 780 | $ | 113 | $ | 112 | $ | 155 | ||||||||||||||||
Moody’s
Investors Service
|
Standard
& Poor’s
|
||
Zero
Coupon Senior Convertible Bonds due 2013
|
WR
(1)
|
BBB+
|
|
Zero
Coupon Senior Convertible Bonds due 2016
|
Baa1
|
BBB+
|
|
Floating
Rate Senior Bonds due 2013
|
Baa1
|
BBB+
|
Total
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
Thereafter
|
|||||||||||||||||||||||||
Operating
leases(2)
|
$ | 372 | 71 | 67 | 59 | 47 | 30 | 27 | 71 | |||||||||||||||||||||||
Purchase
obligations(2)
|
$ | 541 | 427 | 74 | 40 | |||||||||||||||||||||||||||
of
which:
|
||||||||||||||||||||||||||||||||
Equipment
and other asset purchase
|
$ | 112 | 109 | 3 | ||||||||||||||||||||||||||||
Foundry
purchase
|
$ | 154 | 154 | |||||||||||||||||||||||||||||
Software,
technology licenses and design
|
$ | 275 | 164 | 71 | 40 | |||||||||||||||||||||||||||
Other
obligations(2)
|
$ | 353 | 146 | 105 | 53 | 43 | 4 | 2 | ||||||||||||||||||||||||
Long-term
debt obligations (including current portion)(3)(4)(5)
of
which:
|
$ | 2,645 | 159 | 1,211 | 115 | 780 | 113 | 112 | 155 | |||||||||||||||||||||||
Capital
leases(3)
|
$ | 13 | 4 | 6 | 2 | 1 | ||||||||||||||||||||||||||
Pension
obligations(3)
|
$ | 313 | 26 | 36 | 26 | 31 | 32 | 42 | 120 | |||||||||||||||||||||||
Other
non-current liabilities(3)
|
$ | 355 | 8 | 59 | 16 | 85 | 8 | 7 | 172 | |||||||||||||||||||||||
Total
|
$ | 4,579 | $ | 837 | $ | 1,552 | $ | 309 | $ | 986 | $ | 187 | $ | 190 | $ | 518 |
Year
|
Transaction
|
Number
of shares |
Nominal
value (Euro) |
Cumulative
amount of capital (Euro) |
Cumulative
number of shares |
Nominal
value of increase/ reduction in capital (Euro) |
Amount
of issue premium (Euro) |
Cumulative—issue
premium (Euro) |
|||||||||||||||||||||
March
30, 2008
|
Exercise
of options
|
4,885 | 1.04 | 946,710,237 | 910,298,305 | 5,080 | — | 1,756,254,982 | |||||||||||||||||||||
December
31, 2008
|
Exercise
of options
|
13,885 | 1.04 | 946,719,597 | 910,307,305 | 14,440 | — | 1,756,254,982 | |||||||||||||||||||||
March
28, 2009
|
Exercise
of options
|
— | 1.04 | 946,719,597 | 910,307,305 | — | — | 1,756,254,982 |
|
·
|
volatility
in demand in the key application markets and from key customers served by
our products, and changes in customer order patterns, including order
cancellations, all of which generate uncertainties and make it extremely
difficult to accurately forecast and plan our future business
activities;
|
|
·
|
our
ability to adequately utilize and operate our manufacturing facilities at
sufficient levels to cover fixed operating costs particularly at a time of
decreasing demand for our products as well as the financial impact of
obsolete or excess inventories if actual demand differs from our
anticipations;
|
|
·
|
the
impact of intellectual property claims by our competitors or other third
parties, and our ability to obtain required licenses on reasonable terms
and conditions;
|
|
·
|
the
outcome of ongoing litigation as well as any new litigation to which we
may become a defendant;
|
|
·
|
our
ability to successfully integrate the acquisitions we pursue, in
particular the merger of ST-NXP Wireless with Ericsson Mobile Platforms
(“EMP”) to form ST-Ericsson in the current difficult economic
environment;
|
|
·
|
we
hold significant non-marketable equity investments in Numonyx, our joint
venture in the flash memory market segment, and in ST-Ericsson, our joint
venture in the wireless segment. Additionally, we are a guarantor for
certain Numonyx debts. Therefore, declines in these market segments could
result in significant impairment charges, restructuring charges and
gains/losses on equity investments;
|
|
·
|
our
ability to manage in an intensely competitive and cyclical industry, where
a high percentage of our costs are fixed and are incurred in currencies
other than U.S. dollars as well as our ability to execute our
restructuring initiatives in accordance with our plans if unforeseen
events require adjustments or delays in
implementation;
|
|
·
|
our
ability in an intensively competitive environment to secure customer
acceptance and to achieve our pricing expectations for high-volume
supplies of new products in whose development we have been, or are
currently, investing;
|
|
·
|
the
ability to maintain solid, viable relationships with our suppliers and
customers in the event they are unable to maintain a competitive market
presence due, in particular, to the effects of the current economic
environment;
|
|
·
|
changes
in the political, social or economic environment, including as a result of
military conflict, social unrest and/or terrorist activities, economic
turmoil as well as natural events such as severe weather, health risks,
epidemics or earthquakes in the countries in which we, our key customers
or our suppliers, operate; and
|
|
·
|
changes
in our overall tax position as a result of changes in tax laws or the
outcome of tax audits, and our ability to accurately estimate tax credits,
benefits, deductions and provisions and to realize deferred tax
assets.
|
UNAUDITED
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|
||||
Pages
|
||||
Consolidated
Statements of Income for the Three Months Ended March 28, 2009 and March
30, 2008 (unaudited)
|
F-1 | |||
Consolidated
Balance Sheets as of March 28, 2009 (unaudited) and December 31, 2008
(audited)
|
F-2 | |||
Consolidated
Statements of Cash Flows for the Three Months Ended March 28, 2009 and
March 30, 2008 (unaudited)
|
F-3 | |||
Consolidated
Statements of Changes in Equity (unaudited)
|
F-4 | |||
Notes
to Interim Consolidated Financial Statements (unaudited)
|
F-5 | |||
STMicroelectronics
N.V.
|
||||
CONSOLIDATED
STATEMENTS OF INCOME
|
||||
Three
months ended
|
||||
(Unaudited)
|
||||
March
28,
|
March
30,
|
|||
In
million of U.S. dollars except per share amounts
|
2009
|
2008
|
||
Net
sales
|
1,657
|
2,461
|
||
Other
revenues
|
3
|
17
|
||
Net
revenues
|
1,660
|
2,478
|
||
Cost
of sales
|
(1,223)
|
(1,579)
|
||
Gross
profit
|
437
|
899
|
||
Selling,
general and administrative
|
(280)
|
(304)
|
||
Research
and development
|
(557)
|
(509)
|
||
Other
income and expenses, net
|
63
|
9
|
||
Impairment,
restructuring charges and other related closure costs
|
(56)
|
(183)
|
||
Operating
loss
|
(393)
|
(88)
|
||
Other
-than-temporary impairment charge on financial assets
|
(58)
|
(29)
|
||
Interest
income, net
|
1
|
20
|
||
Earnings
(loss) on equity investments
|
(232)
|
-
|
||
Unrealized
gain on financial assets
|
-
|
-
|
||
Loss
on sale of financial assets
|
(8)
|
-
|
||
Loss
before income taxes and noncontrolling interest
|
(690)
|
(97)
|
||
Income
tax benefit (expense)
|
95
|
14
|
||
Loss
before noncontrolling interest
|
(595)
|
(83)
|
||
Net
loss (income) attributable to noncontrolling interest
|
54
|
(1)
|
||
Net
loss attributable to parent company
|
(541)
|
(84)
|
||
Loss
per share (Basic) attributable to parent company
shareholders
|
(0.62)
|
(0.09)
|
||
Loss
per share (Diluted) attributable to parent company
shareholders
|
(0.62)
|
(0.09)
|
||
The accompanying notes are an integral part of these interim consolidated financial statements | ||||
STMicroelectronics
N.V.
|
DRAFT
|
|
CONSOLIDATED
BALANCE SHEETS
|
||
March
28,
|
December
31,
|
|
In
million of U.S. dollars
|
2009
|
2008
|
(Unaudited)
|
(Audited)
|
|
Assets
|
||
Current
assets:
|
||
Cash
and cash equivalents
|
1,480
|
1,009
|
Marketable
securities
|
988
|
651
|
Trade
accounts receivable, net
|
1,101
|
1,064
|
Inventories,
net
|
1,656
|
1,840
|
Deferred
tax assets
|
248
|
252
|
Receivables
for transactions performed on behalf, net
|
11
|
-
|
Other
receivables and assets
|
885
|
685
|
Total
current assets
|
6,369
|
5,501
|
Goodwill
|
1,121
|
958
|
Other
intangible assets, net
|
894
|
863
|
Property,
plant and equipment, net
|
4,341
|
4,739
|
Long-term
deferred tax assets
|
319
|
373
|
Equity
investments
|
376
|
510
|
Restricted
cash
|
250
|
250
|
Non-current
marketable securities
|
184
|
242
|
Other
investments and other non-current assets
|
337
|
477
|
7,822
|
8,412
|
|
Total
assets
|
14,191
|
13,913
|
Liabilities
and shareholders’
equity
|
||
Current
liabilities:
|
||
Bank
overdrafts
|
3
|
20
|
Current
portion of long-term debt
|
159
|
123
|
Trade
accounts payable
|
707
|
847
|
Dividends
payable to shareholders
|
-
|
79
|
Other
payables and accrued liabilities
|
1,037
|
996
|
Deferred
tax liabilities
|
30
|
28
|
Accrued
income tax
|
121
|
125
|
Total
current liabilities
|
2,057
|
2,218
|
Long-term
debt
|
2,486
|
2,554
|
Reserve
for pension and termination indemnities
|
313
|
332
|
Long-term
deferred tax liabilities
|
26
|
27
|
Other
non-current liabilities
|
355
|
350
|
3,180
|
3,263
|
|
Total
liabilities
|
5,237
|
5,481
|
Commitment
and contingencies
|
||
Equity
|
||
Parent
company shareholders’
equity
|
||
Common
stock (preferred stock: 540,000,000 shares authorized, not issued; common
stock: Euro 1.04 nominal value, 1,200,000,000 shares authorized,
910,307,305 shares issued, 874,327,774 shares outstanding)
|
1,156
|
1,156
|
Capital
surplus
|
2,455
|
2,324
|
Accumulated
result
|
3,521
|
4,064
|
Accumulated
other comprehensive income
|
890
|
1,094
|
Treasury
stock
|
(480)
|
(482)
|
Total
parent company shareholders’
equity
|
7,542
|
8,156
|
Noncontrolling
interest
|
1,412
|
276
|
Total
equity
|
8,954
|
8,432
|
Total
liabilities and equity
|
14,191
|
13,913
|
The accompanying notes are an integral part of these interim consolidated financial statements |
STMicroelectronics
N.V.
|
||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
||
Three
Months Ended
|
||
March
28,
|
March
30,
|
|
In
million of U.S. dollars
|
2009
|
2008
|
(Unaudited)
|
||
Cash
flows from operating activities:
|
||
Net
loss attributable to parent company
|