Gross profit totaled $1.30 billion, representing a year-over-year decrease of 38.9%. Gross margin of 40.1%, in line with the mid-point of ST’s guidance, decreased 890 basis points year-over-year, mainly due to the combination of product mix and sales price and higher unused capacity charges.
Operating income decreased 67.3% to $375 million, compared to $1.15 billion in the year-ago quarter. ST’s operating margin decreased 1,490 basis points on a year-over-year basis to 11.6% of net revenues, compared to 26.5% in the second quarter of 2023.
By reportable segment 1, compared with the year-ago quarter:
In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:
Analog products, MEMS and Sensors (AM&S) segment:
- Revenue decreased 10.0% mainly due to a decrease in Imaging.
- Operating profit decreased by 44.5% to $144 million. Operating margin was 12.4% compared to 20.0%.
Power and Discrete products (P&D) segment:
- Revenue decreased 24.4%.
- Operating profit decreased by 57.9% to $110 million. Operating margin was 14.7% compared to 26.4%.
In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
Microcontrollers (MCU) segment:
- Revenue decreased 46.0% mainly due to a decrease in GP MCU.
- Operating profit decreased by 87.1% to $72 million. Operating margin was 8.9% compared to 37.2%.
Digital ICs and RF products (D&RF) segment:
- Revenue decreased 7.6% due to a decrease in ADAS which more than offset the increase in RF Communications.
- Operating profit decreased by 23.8% to $150 million. Operating margin was 29.1% compared to 35.2%.
Net income and diluted Earnings Per Share decreased to $353 million and $0.38 respectively compared to $1.00 billion and $1.06 respectively in the year-ago quarter.
Cash Flow and Balance Sheet Highlights
| Trailing 12 Months | ||||||
| (US$ m) | Q2 2024 | Q1 2024 | Q2 2023 | Q2 2024 | Q2 2023 | TTM Change |
| Net cash from operating activities | 702 | 859 | 1,311 | 4,922 | 5,832 | -15.6% |
| Free cash flow (non-U.S. GAAP) 2 | 159 | (134) | 209 | 1,384 | 1,694 | -18.3% |
Net cash from operating activities was $702 million in the second quarter compared to $1.31 billion in the year-ago quarter.
