Disastrous Q1 results for STMicroelectronics

This is the semiconductor company's fifth consecutive loss and it's president and ceo, Carlo Bozotti (pictured) revealed plans to further reduce inventory levels, following a $184m reduction during Q1. Bozotti said: "It is clear that the global economic environment deteriorated further during the first quarter of 2009. While we have recently begun to see some indicators of improvement in booking activity and visibility, we believe it is still too early to determine how sustainable these signs are across all applications and geographies." ST-Ericsson, ST's venture with Telefon AB LM Ericsson, also reported a net loss of $89m on sales of $391m for its first two months. An immediate restructuring plan has been implemented which will cut costs by $230m with the loss of 1200 employees. The restructure is set to be complete by Q2 2010 and will cost between $70m to $90m, mostly in this year's second quarter. Bozotti remained positive, stating: "ST has returned to a net cash position from a net debt postion. Our actions to improve our financial flexibility continue to support our business strategy."