NXP Semiconductors Announces Second Quarter 2009 Results

EINDHOVEN, The Netherlands – NXP Semiconductors today announced second quarter sales of USD 857 million, a comparable increase of 26.2% from the first quarter of 2009. The increase in sales is mainly attributable to supply chain replenishment following a soft first quarter of 2009 and the continued impact of various, mainly Chinese, stimulus packages.

Adjusted EBITDA in the second quarter amounted to a profit of USD 89 million, down from a profit of USD 114 million in the second quarter of 2008 and up from a loss of USD 71 million in the first quarter of 2009. Adjusted EBITA was a loss of USD 18 million this quarter compared to a loss of USD 29 million in the same period last year and a loss of USD 188 million in the previous quarter.

Net income for the second quarter of 2009 was a profit of USD 344 million compared to a loss of USD 319 million in the second quarter of 2008 and a loss of USD 568 in the first quarter of 2009. The increase in net income is largely attributable to higher financial income as a result of the bond exchanges.

The weak economic environment affected sales of all business segments. The Automotive & Identification business showed a 40.9% decline on a comparable basis, which was in line with the market development. The automotive market was affected by the continued low demand and related car production. Sales in Identification were also weak following a slowdown in government related projects. Sales in the MultiMarket segment declined by 23.1% on a comparable basis. Home segment sales decreased on a comparable basis by 25.5% as the market continued to be weak especially for Analog CRT, partly compensated by improvements in Digital TV. The market for mainstream Set Top Boxes also showed a decline.

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