Electronics Production | March 04, 2008
Positive fourth quarter for NXP
NXP Semiconductors today announced fourth quarter sales of EUR 1,162 million, a comparable growth of 1.9% over the third quarter of 2007 (nominal -4.0%) and a comparable increase of 9.3% over the fourth quarter of 2006.
Adjusted EBITDA in the fourth quarter was EUR 243 million reflecting a 7.5% nominal growth over the third quarter of 2007. Full year sales amounted to EUR 4,629 million, a comparable increase of 1.4%, reflecting soft market conditions as well as a much stronger exchange rate of the Euro versus the US Dollar in 2007. On a nominal basis, full year sales fell 6.7%. NXP continues to successfully execute its Business Renewal Program. Frans van Houten, President and CEO of NXP Semiconductors, commented: “NXP has grown in line with the market this quarter and has delivered on its guidance. We have continued to strengthen the fundamentals of our business, exceeding EUR 100 million of cost savings in 2007 on a run rate basis, and are positioning ourselves well to weather the weak market, and to take advantage of any future upturn.” “In 2008, management will continue to improve the underlying fundamentals of our businesses. We expect to see further benefits from the aggressive deployment of our Business Renewal Program and we will focus on exceeding the EUR 250 million of cost savings achieved in the first phase. We will continue to strengthen our product portfolio to enable organic growth. As we have said before, NXP intends to also play an active role in industry consolidation to ensure scale and leadership positions for its businesses. The signing of the Memorandum of Understanding to combine our can tuner modules operations with Thomson in a joint venture in February of 2008 is another example of this approach.” Outlook: Taking seasonal patterns into account, the company expects a 9% to 13% sequential sales decline in the first quarter of 2008 on a comparable basis. This translates into a year on year low single digit sales increase on a comparable basis.