Gross profit totaled $1.23 billion, representing a year-over-year decrease of 41.8%. Gross margin of 37.8%, 20 basis points below the mid-point of ST’s guidance, decreased 980 basis points year-over-year, mainly due to product mix and, to a lesser extent, to sales price and higher unused capacity charges.
Operating income decreased 69.3% to $381 million, compared to $1.24 billion in the year-ago quarter. ST’s operating margin decreased 1,630 basis points on a year-over-year basis to 11.7% of net revenues, compared to 28.0% in the third 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 13.3% mainly due to decreases in Imaging and in Analog.
- Operating profit decreased by 41.2% to $175 million. Operating margin was 14.8% compared to 21.8%.
Power and Discrete products (P&D) segment:
- Revenue decreased 18.4%.
- Operating profit decreased by 54.0% to $121 million. Operating margin was 15.0% compared to 26.5%.
In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
Microcontrollers (MCU) segment:
- Revenue decreased 43.4% mainly due to a decrease in GP MCU.
- Operating profit decreased by 78.2% to $116 million. Operating margin was 14.0% compared to 36.4%.
Digital ICs and RF products (D&RF) segment:
- Revenue decreased 29.7% mainly due to a decrease in ADAS (automotive ADAS and infotainment).
- Operating profit decreased by 49.5% to $114 million. Operating margin was 26.8% compared to 37.3%.
Net income and diluted Earnings Per Share decreased to $351 million and $0.37 respectively compared to $1.09 billion and $1.16 respectively in the year-ago quarter.
Cash Flow and Balance Sheet Highlights
| Trailing 12 Months | ||||||
| (US$ m) | Q3 2024 | Q2 2024 | Q3 2023 | Q3 2024 | Q3 2023 | TTM Change |
| Net cash from operating activities | 723 | 702 | 1,881 | 3,764 | 6,062 | -37.9% |
| Free cash flow (non-U.S. GAAP) 2 | 136 | 159 | 707 | 813 | 1,725 | -52.9% |
Net cash from operating activities was $723 million in the third quarter compared to $1.88 billion in the year-ago quarter.
