Gross profit totaled $2.12 billion, representing a year-over-year increase of 16.5%. Gross margin of 49.0% increased 160 basis points year-over-year, mainly due to product mix, favorable pricing, positive currency effects, net of hedging, partially offset by higher manufacturing costs.
Operating income increased 14.2% to $1.15 billion, compared to $1.00 billion in the year-ago quarter. In the second quarter 2023, net operating expenses included negative non-recurring non-cash items amounting to $34 million. The Company’s operating margin increased 30 basis points on a year-over-year basis to 26.5% of net revenues, compared to 26.2% in the 2022 second quarter.
By product group, compared with the year-ago quarter:
Automotive and Discrete Group (ADG):
- Revenue increased for both Automotive and Power Discrete.
- Operating profit increased by 73.8% to $624 million. Operating margin was 31.9% compared to 24.7%.
Analog, MEMS and Sensors Group (AMS):
- Revenue decreased in Analog, in Imaging and in MEMS.
- Operating profit decreased by 48.3% to $139 million. Operating margin was 14.8% compared to 24.1%.
Microcontrollers and Digital ICs Group (MDG):
- Revenue increased for both Microcontrollers and RF Communications.
- Operating profit increased by 19.0% to $505 million. Operating margin was 35.4% compared to 33.6%.
Net income and diluted earnings per share increased to $1.00 billion and $1.06 respectively, compared to $0.87 billion and $0.92 respectively, in the year-ago quarter.
Cash Flow and Balance Sheet Highlights
| Trailing 12 Months | ||||||
| (US$ m) | Q 2 202 3 | Q 1 20 2 3 | Q 2 20 2 2 | Q 2 202 3 | Q 2 20 2 2 | TTM Change |
| Net cash from operating activities | 1,311 | 1,320 | 1,056 | 5,832 | 3,777 | 54.4% |
| Free cash flow (non-U.S. GAAP)1 | 209 | 206 | 230 | 1,694 | 1,046 | 62.0% |
Net cash from operating activities was $1.31 billion in the second quarter compared to $1.06 billion in the year-ago quarter.
