NXP Says Sales Topped Forecast on Improving Auto Market

(Bloomberg) -- NXP Semiconductor NV reported preliminary revenue and profit that topped its forecasts, saying market conditions have improved faster than the chipmaker anticipated. Shares gained in extended trading.

Third-quarter revenue will be about $2.27 billion with adjusted operating income of $586 million, the Eindhoven, Netherlands-based company said Thursday in a statement. NXP had projected revenue with a midpoint of $2 billion and operating income of $444 million.

“We experienced material improvement in demand across all end markets, but particularly in the automotive and mobile end markets,” Chief Executive Officer Kurt Sievers said in the statement. NXP is the largest provider of chips used by automakers.

Shares surged 8.6% in extended trading following the announcement. They closed at $134.83 in New York, leaving them up 6% this year.

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