NXP Semiconductors N.V. reported a decline in revenue and profitability for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 29, 2024, total revenue was $3,250 million, down 5.4% from $3,434 million in Q3 2023. Year-to-date revenue also decreased by 3.6%, totaling $9,503 million compared to $9,854 million in the prior year. The decline in revenue was attributed to reduced sales in key markets, particularly in the Automotive and Industrial IoT sectors.
Gross profit for Q3 2024 was $1,866 million, reflecting a gross margin of 57.4%, slightly improved from 57.2% in Q3 2023. Operating income for the quarter was $990 million, nearly unchanged from $992 million in the same quarter last year. However, net income fell to $729 million from $792 million in Q3 2023, resulting in earnings per share (EPS) of $2.82, down from $3.06.
For the nine months ended September 29, 2024, net income was $2,037 million, a decrease from $2,119 million in the same period of 2023. The effective tax rate for the first nine months of 2024 was 18.6%, higher than the 15.8% rate in the previous year, primarily due to unfavorable discrete items and a different mix of tax benefits.
NXP's total assets decreased to $23,669 million as of September 29, 2024, from $24,353 million at the end of 2023. Total liabilities also declined to $13,925 million from $15,393 million, while total equity increased to $9,744 million from $8,960 million. The company reported cash and cash equivalents of $2,748 million, down from $4,042 million at the end of 2023.
Strategically, NXP made significant investments in VisionPower Semiconductor Manufacturing Company Pte. Ltd. (VSMC), acquiring a 40% equity position for $1.6 billion, with additional commitments of $1.2 billion for long-term capacity infrastructure. The company also retired $1 billion of senior unsecured notes during the period, contributing to a decrease in total debt to $10,182 million.
NXP's restructuring liability stood at $56 million as of September 29, 2024, with charges for personnel-related costs amounting to $21 million for the nine-month period. The company did not report any material acquisitions or divestments during this timeframe.
About NXP Semiconductors N.V.
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