Reflecting losses at ST-Ericsson, operating margin before impairment, restructuring and one-time items attributable to ST improved to negative 1.3% in the 2012 second quarter compared to negative 6.5% in the prior quarter.*
In the second quarter of 2012, net loss attributable to non-controlling interests was $160 million, which mainly included the 50% owned by Ericsson in the ST-Ericsson joint venture, as consolidated by ST. In the first quarter of 2012, the corresponding amount was $159 million.
Second quarter net loss attributable to parent company was $75 million or $(0.08) per share, compared to a net loss of $(0.20) per share and net income of $0.46 diluted earnings per share in the prior and year-ago quarters, respectively. On an adjusted basis, net of related taxes, ST reported a non-U.S. GAAP net loss per share of $(0.05), excluding impairment, restructuring charges and one-time items in the second quarter, compared to a net loss of $(0.14) per share and net income of $0.14 diluted earnings per share in the prior and year-ago quarters, respectively.*
(*)Operating income before impairment, restructuring and one-time items, operating margin before impairment, restructuring and one-time items, operating margin before impairment, restructuring and one-time items attributable to ST and adjusted net earnings per share are non-U.S. GAAP measures. For additional information and reconciliation to U.S. GAAP, please refer to Attachment A.
For the second quarter of 2012, the effective average exchange rate for the Company was approximately $1.32 to EUR 1.00 compared to $1.33 to EUR 1.00 for the first quarter of 2012 and $1.37 to EUR 1.00 for the second quarter of 2011.
Net Revenues by Market Segment / Channel
Net Revenues By Market Segment / Channel (*)
(Estimated and In %) Q2 2012 Q1 2012 Q2 2011
-------- -------- --------
Market Segment / Channel:
Automotive 19% 20% 17%
Computer 13% 14% 14%
Consumer 10% 11% 9%
Industrial & Other 9% 10% 10%
Telecom 27% 24% 25%
Total OEM 78% 79% 75%
Distribution 22% 21% 25%
(*) Sales recorded by ST-Ericsson and consolidated by ST are included in Telecom and Distribution.
On a sequential basis, Telecom led all market segments growing 19%. Consumer increased about 3%, Industrial & Other up about 2% while Automotive was flat and Computer decreased by about 7%. Distribution increased 12%.
Revenues and Operating Results by ST Product Segment
Commencing January 1, 2012, the Company began reporting the former ACCI Product Segment (Automotive/Consumer/Computer/Communication Infrastructure) into the other segments. The new product segments are Automotive Segment ("APG") and Digital Sector ("Digital") comprised of the Digital Convergence Group ("DCG") and Imaging, BiCMOS ASIC and Silicon Photonics Group ("IBP").
Operating Segment Q2 2012 Q2 2012 Q1 2012 Q1 2012 Q2 2011 Q2 2011
(In Million US$) Net Operating Net Operating Net Operating
Revenues Income Revenues Income Revenues Income
(Loss) (Loss) (Loss)
-------- --------- -------- --------- -------- ---------
Automotive (APG) 404 38 391 37 459 81
Analog, MEMS &
Microcontrollers
(AMM) 774 98 758 99 889 166
Digital 353 (36) 336 (38) 521 34
Power Discrete
(PDP) 262 4 233 (6) 337 40
Wireless (a) 344 (240) 290 (293) 347 (207)
Others (b)(c) 11 (71) 9 (151) 14 (31)
TOTAL 2,148 (207) 2,017 (352) 2,567 83
