ST reported third quarter net revenues of $2.55 billion and net income of $302 million. This compares to net revenue of $2.52 billion and net income of $369 million for the same quarter in 2018.

The forecast for fourth quarter revenue at the mid-point of about $2.68 billion puts ST’s 2019 sales revenue on course to achieve $9.48 billion, a fall of 1.9 percent from sales of $9.66 billion in 2018.

Jean-Marc Chery, CEO of ST, said: ” “Third quarter net revenues grew 17.5 percent sequentially, above the mid-point of our guidance of 15.3 percent, driven by engaged customer programs and new products in, as expected, a soft legacy automotive and industrial market.

The company recorded rising sales in imaging, analog, power discrete and MEMS but this was offset by lower digital IC, automotive and microcontroller sales. Year-on-year direct OEM sales increased by 7.2 percent while sales through distribution decreased by 11.6 percent.

As a result Analog, MEMS and Sensors continued to be the most successful business unit and took over as the largest of ST’s three main business units. Sales of $968 million were up 7.7 percent on the same quarter a year before.

Thus, ASM overtook the automotive and discretes group that had sales of $894 million, a fall of 0.8 percent year-on-year. The third group – microcontrollers and digital ICs – had sales of $688 million in 3Q19, down 4.3 percent on $719 million achieved in 3Q18.

ST made no statement about the capital expenditure budget which is set at between $1.1 billion and $1.2 billion.

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