Question-and-Answer Session
Operator
We will now begin the question-and-answer session. (Operator Instructions). The first question is from Mr. [inaudible] of Nomura. Please go ahead sir.
Unidentified Analyst
Yes, hello. Thanks for taking my question. If I look on the savings plan, you've announced seven programs of which five are related to OpEx, which in the previous call talked about the ST-Ericsson Phase I and Phase II program. So, I was wondering whether we could quickly go through the remaining three programs, and just say, where would you stand today? And the first one would be the rationalized OpEx program where you said you would save about 140 million by year-end.
Tait Sorensen
Absolutely, so I think we have all the details here and Carlo Ferro will cover this portion.
Carlo Ferro
Yes, good afternoon and good morning everybody. Thank you for the question [Guna]. So, it has to address those of the CT program on the ST part and also on the benefit of all the audience to wrap up on those of our ST-Ericsson as they affect the consumer obviously. So, the first block is the ST plan in the OpEx area. You may remember that this is addressing 750 head count and targeting $140 million of annualized savings. This plan at the end of September is accomplished by 70%. The balance will be completed at the end of December 2009, and I would say that this will be more a bullet event at the end of the year, due to the adoption of certain instrument that occur with the close of ST's carrier.
So, here we have some further potential of savings by several times of million dollars on an annualized basis. On the rest of the ST initiative there are also, those initiative of reducing the non-manufacturing sites and in this respect, we have so far reduced by about one-third of the number sites, non-manufacturing from about 150 to less than 100 sites, and this plan also is on a head path of a completion. I would estimate about 60%, the percentage of completion at this stage. And of course, you are familiar on the fact that the expected support of our process technology efforts by the French government has been very well materializing and is already in our number for the current quarter, with an overall benefit, which we do estimate in a range of $130 million for the current year.
- To read the full transcript on Seeking Alpha, click here »
