Financial Highlights

• Full year 2006 sales at EUR 4,960 million, up 9% on a comparable basis for continued businesses
• 2006 EBIT (excluding effects Purchase Accounting) of EUR 150 million up from EUR 102 million
• Cost savings from Business Renewal Program exceed targets in 2006
• Smooth transition to standalone company
• Strong annual growth in Multimarket Semiconductors and Automotive & Identification business units
• Cash EUR 939 million at year end 2006

 

Eindhoven, The Netherlands, March 26, 2007 – NXP Semiconductors today announced its full year results for the period ending December 31st 2006. Sales for the year amount to EUR 4,960 million, a 9% increase for continued businesses as compared to 2005. 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. NXP’s fully audited annual report according to US GAAP, including details on purchase accounting effects, is available on our website (www.nxp.com/investor).

 

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. We expect to realize a book-to-bill ratio in the quarter of about one.

About NXP

NXP is a top 10 semiconductor company founded by Philips more than 50 years ago. Headquartered in the Netherlands, the company has 37,000 employees working in 20 countries across the world. NXP creates semiconductors, system solutions and software that deliver better sensory experiences in mobile phones, personal media players, TVs, set-top boxes, identification applications, cars and a wide range of other electronic devices. News from NXP is located at http://www.nxp.com/.

 

Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of NXP and certain of the plans and objectives of NXP with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

 

Contact:

Investors:
Jan Maarten Ingen Housz, +31 40 27 22315
Jan Maarten Ingen Housz

 

Media:
Heather Drake, +31 40 27 25176
Heather Drake