NXP’s CEO to retire this year, insider Sotomayor to take over

Audio By Carbonatix

Enlarge

(Reuters) -NXP Semiconductors NV said on Monday CEO Kurt Sievers would retire by the end of the year, and insider Rafael Sotomayor would succeed him.

Shares of the company fell more than 7% in extended trading following underwhelming forecast and beat.

Sotomayor will take on the role of the president effective Monday, and will become the CEO in October.

NXP forecast second-quarter revenue slightly above Wall Street expectations, while posting quarterly revenue that beat estimates by a small margin.

“We are operating in a very uncertain environment influenced by tariffs with volatile direct and indirect effects,” Sievers said in a statement.

NXP provides manufacturers with chips and other technology essential for high-speed digital processing utilized in sectors like automotive, manufacturing, telecommunications and the Internet of Things (IoT).

The Eindhoven, Netherlands-based firm expects second-quarter revenue in the range of $2.8 billion to $3 billion, with a midpoint that is above analysts’ average estimate of $2.87 billion, according to data compiled by LSEG.

For the first quarter ended March 30, NXP posted revenue of $2.84 billion, compared to an estimate of $2.83 billion.

Revenue from its communication and infrastructure segment fell 21% to $315 million in the quarter.

Its chips are also used by firms in the industrial and mobile phone industries. Industrial and IoT revenue fell 11%, while the automotive segment fell 7%.

NXP, which is the biggest maker of computer chips for cars, said in February it would acquire AI firm Kinara in an all-cash deal valued at $307 million.

(Reporting by Juby Babu in Mexico City; Editing by Tasim Zahid and Sriraj Kalluvila)