STMicroelectronics : ST announces new strategic plan
(Thomson Reuters ONE) -
* New vision and strategy; focus on five growth drivers
* Decision to exit ST-Ericsson after a transition period
* New financial model targeting 10 percent or more operating margin
Geneva, December 10, 2012 - STMicroelectronics (NYSE:STM), a global
semiconductor leader serving customers across the spectrum of electronic
applications, announced today its new strategic plan. The plan is the outcome of
a strategic review started more than a year ago, as the company saw major
changes in the dynamics of the wireless market.
"Today we are announcing the new ST, aligned with the new market environment,"
said Carlo Bozotti, President and CEO of ST. "Based on that, we have made the
decision to exit ST-Ericsson after a transition period. We will continue to
support ST-Ericsson as their supply-chain partner, advanced process-technology
partner and application-processor IP provider."
"Our new strategy is centered on leadership in sense and power and automotive
products, and in embedded-processing solutions," continued Bozotti. "Our
specific focus is on five product areas: MEMS and sensors, smart power,
automotive products, microcontrollers, and application processors including
digital consumer. These families are expected to experience solid growth rates
driven by secular trends and fit extremely well with our market-leading
positions and competitive advantages. Our innovative products in these areas
combined with our world-class technology and manufacturing, bring us even more
opportunities to significantly grow and gain market share.
"The new ST will be more focused, leaner and better positioned to deliver value
to our customers and our shareholders, targeting to rapidly achieve operating
margins of 10 percent."
New strategy
The company's new strategy is based on two product-segment organizations: Sense
& Power and Automotive Products; and Embedded Processing Solutions.
ST will build on its leading position in Sense & Power, which includes MEMS and
sensors, power discrete and advanced analog products, and in Automotive
Products, from powertrain to safety, and from body to infotainment.
In Embedded Processing Solutions the company will focus on the core of the
electronics systems rather than on wireless broadband access. The Embedded
Processing Solutions segment includes microcontrollers, imaging products,
digital consumer products, application processors and digital ASICs.
In line with the new financial model, the company expects both product segments
to be profitable and to generate cash. In particular, Embedded Processing
Solutions will turn to profitability leveraging on a stronger product and
technology focus, expanded customer base and manufacturing synergies between
microcontrollers and digital products.
ST will address an estimated $140 billion market* in 2013 and has significant
potential to grow and gain market share.
"The opportunities in this industry are extremely exciting," said Bozotti. "As
semiconductors continue to be more pervasive, we see a world where ST products
are everywhere microelectronics make a positive contribution to people's lives.
With our new strategic plan, we will grow faster, be more profitable and overall
become an even stronger company."
ST-Ericsson
As a consequence of the major changes that occurred in the dynamics of the
wireless market, ST has taken the decision to exit ST-Ericsson after a
transition period and is currently in negotiations on exit options. This
disengagement process has started, with the transition expected to end during
the third quarter of 2013. While no further details can be provided at this
time, any option taken will be in line with the new financial model as presented
by ST today.
ST will continue to support ST-Ericsson as its supply-chain partner, advanced
process-technology partner (FD-SOI) and application-processor IP provider.
ST continues to pursue significant growth opportunities in wireless through its
leading product portfolio.
Financial model
ST is targeting an operating margin of 10 percent or more. In order to achieve
the new financial model, ST expects to reduce quarterly net operating expenses
to an average quarterly rate in the range of $600 million to $650 million by the
beginning of 2014.
Forward-looking information
This Press Release contains statements of future expectations and other forward-
looking statements (within the meaning of Section 27A of the Securities Act of
1933 or Section 21E of the Securities Exchange Act of 1934, each as amended).
These statements include expectations regarding our new strategic plan,
including expected benefits, future financial and operating results and other
statements regarding events or developments that we believe or anticipate will
or may occur in the future. These statements are based on management's current
views and assumptions, and are conditioned upon and also involve known and
unknown risks and uncertainties that could cause actual results, performance or
events to differ materially from the forward-looking statements contained in
this Press Release. Such risks and uncertainties include the continuing
difficult macro-economic and industry conditions and trends in the semiconductor
sector and the other risks detailed in our filings with the Securities and
Exchange Commission. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially which could have a material adverse effect on our business
and/or financial condition. We do not intend, and do not assume any obligation,
to update any forward looking statements set forth in this Press Release.
STMicroelectronics Webcast information
The press release will be available immediately after publication on the
Company's website at www.st.com.
__________
(*) source: WSTS November 2012 forecast
The management of STMicroelectronics will conduct a conference call on December
10, 2012 at 9:00 a.m. Central European Time / 3:00 a.m. U.S. Eastern Time, to
discuss the new strategic plan, followed by a Q&A session.
A live webcast of the conference call will also be available via the Internet by
accessing http://investors.st.com
About STMicroelectronics
ST is a global leader in the semiconductor market serving customers across the
spectrum of sense and power and automotive products and embedded processing
solutions. From energy management and savings to trust and data security, from
healthcare and wellness to smart consumer devices, in the home, car and office,
at work and at play, ST is found everywhere microelectronics make a positive and
innovative contribution to people's life. By getting more from technology to get
more from life, ST stands for life.augmented.
In 2011, the company's net revenues were $9.73 billion. Further information on
ST can be found at www.st.com.
For further information, please contact:
INVESTOR RELATIONS :
Tait Sorensen
Director, Investor Relations
Tel: +1 602 485 2064
tait.sorensen(at)st.com
MEDIA RELATIONS :
Maria Grazia Prestini
Group VP, Corporate Media and Public Relations
STMicroelectronics
Tel: + 41 22 929 6945
ST New Strategic Plan English:
http://hugin.info/152740/R/1663511/539485.pdf
This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: STMicroelectronics via Thomson Reuters ONE
[HUG#1663511]
Unternehmensinformation / Kurzprofil:
Datum: 10.12.2012 - 07:31 Uhr
Sprache: Deutsch
News-ID 210905
Anzahl Zeichen: 8681
contact information:
Town:
Geneva
Kategorie:
Business News
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