STMicroelectronics reported financial results for the 2009 third quarter 2009. The net revenues of total $2,275 million and include sales recorded by ST-Ericsson as consolidated by ST. Net revenues increased 14% sequentially, reflecting an increase in demand across all of ST’s served market segments, as well as in all regions, with particular strength in Asia Pacific and Greater China. Sequential revenues growth has restarted in America and Europe, reflecting improved market conditions. Net revenues declined in comparison to the year-ago quarter in all market segments and in all regions except Asia Pacific, due to weaker business conditions.
On a sequential basis, all market segments posted growth, with Computer increasing by 21%, Automotive by 18%, Telecom by 14%, Consumer by 11% and Industrial by 9%. Distribution increased 20%, reflecting the better alignment of the Company’s inventory to current demand levels and improving market conditions. In comparison to the year-ago quarter, all market segments decreased with Industrial down by 35%, Consumer by 28%, Automotive by 19%, Telecom by 8% and Computer down by 5%. Distribution decreased 19% in comparison to the year-ago period reflecting a destocking of this channel and weaker industry conditions.
ACCI’s (Automotive/Consumer/Computer/Communication Infrastructure Product Groups) third quarter net revenues increased 18% sequentially to $852 million, reflecting strong growth in the Computer and Automotive markets as industry conditions are starting to improve. ACCI’s third quarter operating loss was $36 million, compared to a loss of $77 million in the prior quarter and income of $58 million in the year-ago quarter.
IMS’ (Industrial and Multisegment Product Sector) third quarter net revenues increased 17% to $694 million on a sequential basis reflecting improved market conditions and solid growth in the multi-segment market and distribution. Due to the increase in sales, IMS returned to an operating income of $27 million in the third quarter, compared to an operating loss of $16 million in the prior quarter; IMS reported operating income of $154 million in the year-ago quarter. Wireless net revenues in the third quarter increased 8% sequentially to $704 million. Net sales were better than normal seasonal patterns with solid performance in Asia.
Wireless operating loss in the third quarter was $75 million, compared to an operating loss of $126 million in the prior quarter. Wireless operating results in the third quarter of 2009 exclude $17 million in restructuring charges related to ST-Ericsson, as consolidated by ST.
In the third quarter of 2009, ST booked $48 million of income, reflecting the net loss attributable to noncontrolling interest, mainly related to the ST-Ericsson joint venture. This amount is posted below operating results in ST’s Consolidated Income Statement and reflects Ericsson’s 50% share in the joint venture’s loss, as consolidated by ST.
