ON Semiconductor Corporation (onsemi) reported a significant decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For Q3 2024, the company generated total revenue of $1,761.9 million, down approximately 19% from $2,180.8 million in Q3 2023. The nine-month revenue also decreased by about 14%, from $6,234.9 million in 2023 to $5,359.8 million in 2024. This decline was attributed to reduced demand in automotive and industrial end-markets, impacting all three operating segments: Power Solutions Group (PSG), Analog and Mixed-Signal Group (AMG), and Intelligent Sensing Group (ISG).
Operating income for Q3 2024 was $445.4 million, a decrease of 36% from $687.0 million in the prior year. Net income followed a similar trend, falling to $402.7 million from $582.9 million in Q3 2023. For the nine-month period, net income decreased from $1,622.2 million to $1,194.8 million, reflecting a 27% decline. The gross profit margin also contracted, with Q3 2024 gross profit at $799.4 million (45.4% margin) compared to $1,030.7 million (47.3% margin) in Q3 2023.
The company undertook a restructuring initiative in 2024, resulting in total restructuring costs of $99.6 million for the nine months ended September 27, 2024. This included severance and related charges affecting approximately 1,300 employees, with 1,100 notified of termination. The restructuring aimed to streamline operations and drive efficiencies amid challenging market conditions.
In terms of balance sheet metrics, ON Semiconductor's total assets increased to $13,923.6 million as of September 27, 2024, up from $13,215.2 million at the end of 2023. Total stockholders’ equity also rose to $8,604.0 million from $7,800.6 million. The company reported cash and cash equivalents of approximately $2.47 billion, slightly down from $2.68 billion a year earlier.
The company continued its share repurchase program, buying back 2.8 million shares for $200 million in Q3 2024, with a remaining authorized amount of approximately $2.0 billion under the program initiated in February 2023.
Overall, ON Semiconductor's financial results reflect a challenging environment, with significant revenue and profit declines, alongside strategic restructuring efforts to adapt to market demands.
About ON SEMICONDUCTOR CORP
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