Electronics Weekly
It forecast Q2 net revenues of $2.71 billion with a gross margin of 33.4%
A company-wide programme to resize the company will deliver savings in the high triple-digit million-dollar range exiting 2027.
“Q1 net revenues came in line with the midpoint of our
business outlook range, driven by higher revenues in Personal Electronics offset by lower-than-expected revenues in Automotive and Industrial,” says CEO Jean-Marc Chery (pictured) , “gross margin was slightly below the mid-point of our business outlook range mainly due to product mix. On a year-over-year basis, Q1 net revenues decreased 27.3%, operating margin decreased to 0.1% from 15.9%and net income decreased 89.1% to $56 million.”
“In the first quarter, our book-to-bill ratio improved with both Automotive and Industrial above parity,” added Chery, “our second quarter business outlook, at the mid-point, is for net revenues of $2.71 billion, decreasing year- over-year by 16.2% and increasing sequentially by 7.7%; gross margin is expected to be about 33.4%, impacted by about 420 basis points of unused capacity charges.”
“We plan to maintain our Net Capex (non-U.S. GAAP1) plan for 2025 between $2.0 billion and $2.3 billion mainly to execute the reshaping of our manufacturing footprint,” concluded Chery, “while we see Q1 2025 as the bottom, in the current uncertain environment we are focusing on what we can control: keep on innovating to continuously improve and accelerate the competitiveness of our product and technology portfolio, focus on advanced manufacturing and tightly manage our costs.”
