– Carlo Ferro, chief financial officer at European chip company
STMicroelectronics NV, has been assigned chief operating officer at troubled subsidiary
ST-Ericsson. The move is intended to support efforts to turn the loss making
ST-Ericsson around. Ferro
will report to ST-Ericsson CEO Didier Lamouche.
Arlati, ST's chief accounting officer and head of corporate external reporting,
has been appointed chief financial officer at ST on an interim basis while
Ferro is assigned to ST-Ericsson. ST's investor relations department,
previously part of the CFO organization, is now the responsibility of Philippe
Lambinet, corporate strategy officer.
have been working closely with Carlo in his role as ST's chief financial officer
for the past six years," said Carlo Bozotti, ST's president and CEO, in a
statement. "I am confident that his knowledge, drive for results and
determination will play a fundamental role in the turnaround of ST-Ericsson. I
would like to thank him for taking on this important assignment."
CEO of ST-Ericsson, said: "I am extremely happy of having Carlo join me in
such a fundamental role, when establishing ST-Ericsson’s new leadership team. Carlo
is one of the most efficient executives I have met in my career when it comes
to getting things done: he has an outstanding track record and skills in
hard-driving complex transformation projects that go beyond finance."
added: "His deep understanding of ST-Ericsson and his strong dedication to
our company since its inception will provide a jump start towards our goal of
securing a strong roadmap to profitability based on enhancing execution,
delivering in volume our leading products and lowering our break-even point.”
has a reputation as strict financial controller. He helped drive down capital
expenditure at STMicroelectronics as the company transitioned away from a
fully-committed IDM strategy. Ferro also oversaw restructuring efforts that led
to a reduction of the number of ST wafer fabs from 17 to 8 and the number of
non-manufacturing sites by about one third.
Carlo Ferro, chief financial officer of STMicroelectronics assigned to serve as chief operating officer at ST-Ericsson.
analysts have said that STMicroelectronics needs to make radical changes to
prevent the drag of ST-Ericsson losses having a disastrous effect on
the full year of 2011 ST-Ericsson made a net loss of $841 million on net sales
of $1,650 million. This compared with a net loss of $591 million on net sales
of $2,293 million in 2010. At the end of the year ST-Ericsson owed its parent
companies about $800 million and listed just $2 million in cash and short-term
deposits on hand.