So, automotive seems to be recovering in China, while during Q2, Europe and US will be hit the most.Okay. As a consequence of the shutting down of many carmakers and Tier 1s production line around the world. So I will let Marco first to make the first comment about the automotive market and I will complement if needed.Currently based on our plan, we estimate to have in the year something in the range of between 180, 190 basis point on our gross margin for the year, impacted by the unloading charges. And also where you think your inventory can go at the end of Q2? This is mainly driven by the fact that we have the lower level of revenues. I think it is a total normal behavior. I just wondered if you could give us some color on how you may be affected by this. STM | A complete STM overview by MarketWatch. For sure for logistic situation is getting better also because we are starting to find let's say alternative routes, alternative ways to serve our customers, so it's getting a little bit better.Yes partly. So AMS will decline significantly revenue on a sequential basis moving from Q1 to Q2.That’s very helpful and reassuring. So AMS will decline significantly revenue on a sequential basis moving from Q1 to Q2. It’s based also on clear — let’s say, intense, we have with our top OEM for the current ongoing programs, but also for next-generation. STMicroelectronics Reports 2020 First Quarter Financial Results PR No: C2954C Q1 net revenues $2.23 billion ; gross margin 37.9%; operating margin 10.4%; net income $192 million Q1 net financial position (1) $668 million Business outlook at mid-point: Q2 net revenues $2.0 billion and gross margin of 34.6% Geneva , April 22, 2020 - STMicroelectronics (NYSE And this is fueled not only by, let's say, the legacy product that we have but also by the new products that have been introduced during last year.Our first quarter operating margin was 10.4%, increasing 20 basis point on a year-over-year basis, with the improvement of AMS operating margin compensating the decrease in MDG and ADG.
STMicroelectronics will conduct a conference call with analysts, investors and reporters to discuss its second quarter 2020 financial results and current business outlook today at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern Time (ET). Anyway, the situation is complex from a supply standpoint that we cannot exclude that some customers are increasing their safety stock to secure their own supply chain as was mentioned just now by Jean-Marc. And if so could you perhaps clarify what time frame were you thinking? This is the plan — how we have framed the plan for 2020 by group — the evolution of the revenues by group.For the full-year 2020, we will drive the company based on a plan for full year 2020 revenues between $8.8 billion and $9.5 billion. And particularly in automotive, I think you made a few comments that things have stabilized and started to improve, but I assume that’s just the China comment at this stage.
In Q1 our — I’m talking about front-end, of course. We have take into consideration and we think the guidance is reflecting the combination of these two ingredients let's say the demand from customers and let's say dynamic of our capability to produce.