Net revenues totaled $4.42 billion, representing a year-over-year increase of 24.4%. On a year-over-year basis, the Company recorded higher net sales in all product groups and sub-groups except the Analog and MEMS sub-groups. Year-over-year net sales to OEMs and Distribution increased 26.8% and 19.5%, respectively. On a sequential basis, net revenues increased 2.4%, 60 basis points above the mid-point of the Company’s guidance. ADG and MDG reported increases in net revenues on a sequential basis, while AMS decreased.
Gross profit totaled $2.10 billion, representing a year-over-year increase of 30.7%. Gross margin of 47.5%, 20 basis points above the mid-point of the Company’s guidance, increased 230 basis points year-over-year, principally due to favorable pricing, improved product mix, positive currency effects, net of hedging, partially offset by the inflation of manufacturing input costs.
Operating income increased 45.4% to $1.29 billion, compared to $885 million in the year-ago quarter. The Company’s operating margin increased 420 basis points on a year-over-year basis to 29.1% of net revenues, compared to 24.9% in the 2021 fourth quarter.
By product group, compared with the year-ago quarter:
Automotive and Discrete Group (ADG):
- Revenue increased in Automotive and in Power Discrete.
- Operating profit increased by 117.9% to $470.2 million. Operating margin was 27.7% compared to 17.6%.
Analog, MEMS and Sensors Group (AMS):
- Revenue increased in Imaging and decreased in Analog and MEMS.
- Operating profit increased by 2.4% to $345.6 million. Operating margin was 25.8% compared to 27.0%.
Microcontrollers and Digital ICs Group (MDG):
- Revenue increased in Microcontrollers and in RF Communications.
- Operating profit increased by 56.6% to $495.3 million. Operating margin was 35.8% compared to 29.5%.
Net income increased to $1.25 billion, including a one-time non-cash income tax benefit of $141 million, compared to $750 million in the year-ago quarter, and diluted earnings per share increased to $1.32 compared to $0.82 in the year-ago quarter.
Cash Flow and Balance Sheet Highlights
| Trailing 12 Months | ||||||
| (US$ m) | Q 4 202 2 | Q 3 20 2 2 | Q 4 20 2 1 | Q 4 202 2 | Q 4 20 2 1 | TTM Change |
| Net cash from operating activities | 1,550 | 1,651 | 881 | 5,202 | 3,060 | +70.0% |
| Free cash flow (non-U.S. GAAP) | 603 | 676 | 314 | 1,591 | 1,120 | +42.1% |
Capital expenditure payments, net of proceeds from sales, were $920 million in the fourth quarter and $3.52 billion for the full year 2022. In the respective year-ago periods, capital expenditures, net, were $548 million and $1.83 billion.
