NXP Semiconductors has announced first quarter sales of USD 1,519 million, a comparable growth of 0.8% on the first quarter of 2007 and a comparable decline of 7.5% over the fourth quarter of 2007, reflecting the continuing softness of the overall market as well as normal seasonal weakness. Adjusted EBITDA in the first quarter was USD 183 million, the same level as the first quarter of 2007, but down from USD 349 million in the fourth quarter of 2007. Adjusted EBITA showed a USD 37 million increase to USD 41 million this quarter compared to USD 4 million in the same period last year, reflecting improved gross margin and operational profitability, despite the weak dollar.
Frans van Houten, President and CEO of NXP Semiconductors, commented:
“We were able to achieve a sales level in line with our guidance provided, as the result of better than anticipated sales in both the MultiMarket Semiconductors’ and Automotive & Identification businesses. Our cash position has reduced in the first quarter to USD 519 million. Apart from the payment for GloNav, this reduction is largely caused by changes in working capital, reflecting the seasonal pattern. The continued focus on our Business Renewal strategy is paying off and the cost savings we have already achieved from that strategy have led to an improved gross margin offsetting some of the currency effects on profitability. We continue to strengthen our operations and remain on course to deliver USD 375 million of cost savings on a run-rate basis by the end of 2008.”
The Automotive & Identification business continues to perform well. The Mobile & Personal business delivered solid growth in an overall weak market. MultiMarket Semiconductors was under pressure but performed reasonably well.”
Outlook: the company expects a year-on-year mid single-digit sales decrease on a comparable basis. This translates into a low single-digit sequential sales decrease in the second quarter of 2008 on a comparable basis.
The full report is available on NXP website (www.nxp.com/investor).
NXP Semiconductors
