Automotive drags down NXP

As expected, NXP’s automotive business took a big blow in the second quarter. Its revenue dropped 32 percent sequentially and 35 percent year-on-year. As the chipmaker’s biggest division, that dragged down overall results – the other three divisions reported better than anticipated sequential trends. Total Q2 revenue came to 1.8 billion dollars, down 18 percent year-on-year. Last year’s operating income of 157 million dollars tilted to a loss of 145 million dollars.

NXP expects a slight improvement in the next quarter, guiding 1.9-2.1 billion dollar in revenue. Looking farther ahead, CEO Kurt Sievers sees potential for further recovery. “We are encouraged by the early positive trends we experienced in China and sales out of our distribution channel improved sequentially. We expect improved sales trends through the second half of this year, as a result of company specific program ramps and the ongoing stabilization of our end markets,” commented Sievers.