NXP says outlook looks weak

The profit measure, EBITA (Earnings Before Interest, Tax and Amortization) adjusted for one-offs was EUR 325 million, as compared to EUR 281 million in 2005. Frans Van Houten, President and CEO of NXP Semiconductors, commented: “I am very pleased with what NXP has accomplished in 2006, in particular the smooth transition to a standalone company. “We launched our business renewal program in 2005 and have exceeded our target of reducing annual costs by EUR 250 million by the end of 2006. We have achieved year-on-year sales and EBITA growth, and made big steps in operational excellence. “We continue to rigorously execute on our strategy to achieve leadership positions in each of our core businesses. While the industry entered a more challenging period in the fourth quarter of 2006, we are executing a series of measures as part of Business Renewal 2 to enable us to maximise the benefits from the next industry upturn. “We are thrilled to have successfully completed the acquisition of Silicon Labs' wireless division as of March 23, and the integration is well in progress." Outlook: In line with the overall weakened semiconductor market experienced in the last months of 2006, and the normal seasonal pattern, management currently expects a sequential sales decline from -6 to -9% (on a currency comparable basis) for the first quarter of 2007. NXP expect to realize a book-to-bill ratio in the quarter of about one. NXP Semiconductors recently announced the opening of its global TV signal testing lab in Suzhou, China to facilitate and fulfill Asia customers' high demand for global TV signal testing, according to the company.