The company had revenues of $2.27 billion up 18 percent over 2Q17 and reported net income of $261 million, up 73 percent. The improvements were balanced across product groups, regions and markets but with particularly strong performance in the industrial sector, the company said.
"ST had another quarter of double-digit, year-over-year revenue growth, with improved performance across key financial metrics. We are on track with the goal set at our Capital Markets Day to grow year-over-year 2018 revenues between about 14 and 17 percent," said Jean-Marc Chery, CEO of ST, in a statement.
"ST’s third quarter outlook is for revenues to grow sequentially about 10.0 percent reflecting year-over-year growth of 16.8 percent. This is driven by continued healthy demand in our end markets and, as anticipated, by growth in smartphone applications," Chery added.
Automotive and Discrete Group (ADG) revenue was $870 million, up 15.2 percent compared with the same quarter a year before. The operating profit increased 28.8 percent to $84 million.
The Analog, MEMS and Sensors group (AMS) had revenue of $613 million up 10.7 percent on the same basis. Operating profit increased by 24.1 percent to $64 million.
Sales of microcontrollers and digital ICs were $782 million, up by 27.8 percent. Operating profit in this group more than doubled to $159 million.
In response to questions from financial analysts Marco Cassis, senior vice president for sales and marketing, said that lead times on products are now stable. "We do not see any dangerous increase of inventory at the distribution level." Chery also assured analysts asking about a possible end to the current expansion cycle that things are set fair for now. "There are absolutely no weak signals in the markets we address, automotive and industrial," he said.
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