STMicroelectronics 2021 Net Income Up 81% to $2B

Article By : STMicroelectronics

Net revenues for 2021 increased by 24.9% to $12.76 billion, reflecting a strong performance across all the end markets ST addresses and its engaged customer programs throughout the year.

STMicroelectronics has reported net revenues of $3.56 billion for the fourth quarter of 2021, representing a year-over-year increase of 9.9%, and net income of $750 million.

“As we announced on January 7, 2022, our Q421 net revenues and gross margin came in better than expected primarily due to better than anticipated operations in an ongoing dynamic market. Q421 net revenues were 9.9% higher year-over-year, with a further increase in profitability: operating margin of 24.9% improved from 20.3% and net income was up 28.9%,” said Jean-Marc Chery, STMicroelectronics President & CEO, commented.

Full year 2021 net revenues increased by 24.9% to $12.76 billion, reflecting a strong performance across all the end markets ST addresses and its engaged customer programs throughout the year, according to Chery. Operating margin increased to 19% from 12.9% in FY20, and net income was up by 80.8% to $2 billion.

On a year-over-year basis, ST recorded higher net sales in all product groups except the Imaging sub-group, as expected. Year-over-year net sales to OEMs were substantially unchanged in total while Distribution increased by 38.7%. On a sequential basis, net revenues for the fourth quarter increased by 11.2%, 140 basis points above the high-end of the company’s guidance. The Automotive and Discrete Group (ADG) and Microcontrollers and Digital ICs Group (MDG) reported increases in net revenues on a sequential basis, with Analog, MEMS and Sensors Group (AMS) essentially flat.

Gross profit totaled $1.61 billion, representing a year-over-year increase of 28.3%. Gross margin of 45.2% increased by 640 basis points year-over-year, 20 basis points above the high-end of the company’s guidance, principally driven by improved product mix, favorable pricing, and manufacturing efficiencies.

Operating income increased by 34.8% to $885 million, compared to $657 million in the year-ago quarter. ST’s operating margin increased by 460 basis points year-over-year to 24.9% of net revenues, compared to 20.3% in the 2020 fourth quarter.

“ST’s first quarter outlook, at the mid-point, is for net revenues of $3.5 billion, increasing year-over-year by 16.1% and decreasing sequentially by 1.6%; gross margin is expected to be about 45%,” said Chery. “For 2022, we plan to invest about $3.4 billion to $3.6 billion in CAPEX to further increase our production capacity and to support our strategic initiatives including the first industrialization line of our new 300mm wafer fab in Agrate, Italy. Based on our strong customer demand and increased capacity, we will drive the company based on a plan for FY22 revenues in the range of $14.8 billion to $15.3 billion.”

 

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