STMicroelectronics 4Q Net Profit Rose; Plans to Invest in Chip-Production Capacity
27 January 2022 - 5:52PM
Dow Jones News
By Mauro Orru
STMicroelectronics NV on Thursday posted higher net profit for
the fourth quarter amid strong demand for semiconductors, and
outlined plans to invest about $3.4 billion to $3.6 billion in
capital expenditure this year to further increase production
capacity.
The European chip maker said net profit climbed to $750 million
from $582 million in the fourth quarter of 2020.
Net revenue for the period rose to $3.56 billion from $3.24
billion, as indicated by preliminary figures earlier in
January.
Gross profit rose to $1.61 billion from $1.25 billion with a
gross margin of 45.2%, while operating income rose to $885 million
from $657 million with an operating margin of 24.9%.
STMicroelectronics had expected a fourth-quarter gross margin of
about 43%, plus or minus 200 basis points. Chief Executive
Jean-Marc Chery indicated in early January that the company ended
the fourth quarter with revenue above its target and a gross margin
at or slightly above the high end of the outlook range.
For the first quarter of this year, STMicroelectronics expects
net revenue of $3.50 billion at the mid-point. It also targets a
gross margin of about 45%, plus or minus 200 basis points.
"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," Mr. Chery said.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
January 27, 2022 01:37 ET (06:37 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.