Electronics Production | October 23, 2009
NXP improves on 3Q/2009 sales results
NXP reported 3Q sales of USD 1,034 million, a comparable increase of 19.2% from the second quarter of 2009. While the effects of the economic and financial crisis continue to have an impact on the industry, the increase in sales on a sequential basis was visible across all business segments and regions.
Adjusted EBITDA in the third quarter of 2009 amounted to a profit of USD 147 million, which is in line with the profit of USD 147 million in the third quarter of 2008, and up from a profit of USD 89 million in the second quarter of 2009. Adjusted EBITA was a profit of USD 55 million this quarter compared to a profit of USD 15 million in the same period last year and a loss of USD 18 million in the previous quarter. Net income for the third quarter of 2009 was a profit of USD 412 million compared to a loss of USD 2,540 million in the third quarter of 2008 and a profit of USD 344 million in the second quarter of 2009. The sequential increase in net income is largely attributable to a higher financial income as a result of the debt restructuring transactions during the quarter. Outlook Although we have recently experienced improvements across all business segments and all regions we are yet to see signs that this represents a fundamental and sustainable improvement of the global semiconductor industry. Considering the current business development and the unusual characteristics of this fourth quarter, we expect a flat to mid single digit sequential sales increase in the fourth quarter of 2009 on a business and currency comparable basis (excluding wafer sales to ST-Ericsson). Visibility beyond the fourth quarter is still limited. Strengthening of Management Team The company has extended its management team with the appointments of Kurt Sievers as general manager for the automotive business and Frans Scheper as general manager for the standard products business. Both executives will report directly to President and CEO Rick Clemmer. The positions will enable NXP to further deliver on its strategy of building leadership in High Performance Mixed Signal (HPMS) technology, while maintaining a strong standard products business. “These new appointments bring added strength to the team, providing the leadership skills, specialist market knowledge and operational rigor that are essential in enabling us to grow our automotive and standard products businesses as part of our ambition to focus and lead in High Performance Mixed Signal while delivering excellence in standard products,” said Rick Clemmer, President and Chief Executive Officer of NXP. Kurt Sievers will take on responsibility for the overall automotive business unit from Rick Clemmer, who was holding the position on an ad interim basis. Frans Scheper’s role as general manager for standard products is a newly created position.