GENEVA, SWITZERLAND--(Marketwire - Jun 23, 2011) -
* Plan aimed to achieve $120 million of annualized savings by end of 2012
* Includes global workforce review that may affect up to 500 employees
* Company also pushes out target for break-even based on current
Geneva, Switzerland, June 23, 2011 - ST-Ericsson, a joint
STMicroelectronics (NYSE: STM) and Ericsson (NASDAQ: ERIC), today
due to recent changes in the business environment and reduced demand for
products at certain customers, it will launch a cost savings plan to
about $120 million of annualized savings by the end of 2012.
"These actions while necessary to strengthen the financial position of the
company, will not compromise the execution of our new products and delivery
our customers," said Gilles Delfassy, president and CEO of ST-Ericsson. "We
continue to gain traction on our new product portfolio and remain
committed to leadership in the smartphone and tablet markets."
Also, while the company keeps its strong focus to improving financial
performance, the company's path to profitability is expected to take
with the target break-even, based on current visibility, now planned later
the previously anticipated second quarter 2012.
The cost savings plan includes a global workforce review that may affect up
500 employees worldwide. Specific country impact related to the plan and
details will be provided when employee representatives have been involved
required. Restructuring costs are estimated to be approximately $55
which the majority is expected to be recorded during the second half of
ST-Ericsson is a world leader in developing and delivering a complete
of innovative mobile platforms and cutting-edge wireless semiconductor
across the broad spectrum of mobile technologies. The company is a
supplier to the top handset manufacturers and generated sales of $2.3
2010. ST-Ericsson was established as a 50/50 joint venture by
(NYSE: STM) and Ericsson (NASDAQ: ERIC) in February 2009, with
The ST-Ericsson results reported in this press release do not reflect in
entirety the results of the Wireless Segment of STMicroelectronics,
include other activities that are not part of ST-Ericsson.
This press release contains forward-looking statements that involve
risks and uncertainties. We have identified certain important factors that
cause actual results to differ materially from those contained in such
looking statements. For a detailed description of risk factors see
STMicroelectronics' (NYSE: STM) and Ericsson's (NASDAQ: ERIC) filings with
Securities and Exchange Commission, particularly each company's latest
Annual Report on Form 20-F.
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originality of the information contained therein.
Source: Ericsson via Thomson Reuters ONE