ON Semi foresees uptick after lackluster Q4

ON Semiconductor
Despite a lackluster 2019, semiconductor supplier ON Semiconductor sees improved economic and geopolitical factors contributing to improved financial results in upcoming quarters. (ON Semiconductor)

For the fourth quarter of 2019, ON semiconductor reported net earnings of $56.6, or 14 cents per share, on sales of $1.4 billion, compared to $165.6 million, or 39 cents per share, on sales of $1.5 billion in the fourth quarter a year ago. The company’s gross margin was 34.6%, and operating income was $138.9 million.

For full 2019 fiscal year, ON Semiconductor posted net earnings of 51 cents per share on sales of $5.5 billion. Gross margin was 35.8%.

“Our performance in 2019 validates the transforming nature of our business, as we expect to outperform most of our peer group against a backdrop of challenging macroeconomic and geopolitical conditions,” said Keith Jackson, president and CEO of ON Semiconductor, in a statement. “We believe that our strong competitive position in automotive, industrial, and cloud-power semiconductor end-markets, and exposure to secular trends in these markets continue to be the key drivers of our superior performance. Along with strong revenue performance, we are taking substantial measures to expand our margins by making structural changes to our manufacturing footprint, and accelerating the timeline for production at our 300mm fab."

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Jackson added, “In the fourth quarter, we saw moderate improvement in business trends, and the improvement has continued thus far in the first quarter of 2020. With improving macroeconomic and geopolitical conditions, solid product portfolio with exposure to the most attractive semiconductor end-markets, and ongoing structural improvements to our cost structure, ON Semiconductor is well positioned to deliver strong near to mid-term performance.”

For the first quarter of 2020, ON Semiconductor projects revenue of $1.35 to $1.45 million, with gross margin ranging from 33.7 to 34.7%.



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