ST looking to 14-17% growth this year
- Author:Ella Cai
- Release on:2018-07-26
ST had Q2 revenues of $2.27 billion up 18% on Q2 2017.
Gross margin was 40% and profit was $261 million.
It expects Q3 revenues to show growth of 10% to about $2.5 billion.
The company’s growth target for the year is between 14 and 17% growth.
“We are growing significantly in the third and fourth quarters in personal electronics, in particular smartphones. This growth from a gross margin point of view is not accretive,” said CFO Lorenzo Grandi, “gross margins will be impacted by this ingredient of product mix.”
Q3/4 is when Apple orders are expected to kick in. However they are not expected to have a positive effect on margins.
ST is looking to shift its product mix to cars and industrial and away from the less stable mobile market.
Gross margin was 40% and profit was $261 million.
It expects Q3 revenues to show growth of 10% to about $2.5 billion.
The company’s growth target for the year is between 14 and 17% growth.
“We are growing significantly in the third and fourth quarters in personal electronics, in particular smartphones. This growth from a gross margin point of view is not accretive,” said CFO Lorenzo Grandi, “gross margins will be impacted by this ingredient of product mix.”
Q3/4 is when Apple orders are expected to kick in. However they are not expected to have a positive effect on margins.
ST is looking to shift its product mix to cars and industrial and away from the less stable mobile market.
