NXP Semiconductors Announces Quarterly Dividend and Expansion of the 2021 Share Repurchase Program
August 26 2021 - 4:05PM
As part of its ongoing capital return program, NXP Semiconductors
N.V. (NASDAQ: NXPI) today announced that its board of directors has
approved the payment of an interim dividend and the expansion of
its 2021 share repurchase authorization. The actions are based on
the significant strength of the NXP capital structure, and the
board’s confidence in the company’s ability to drive long-term
growth and strong cash flow.
The board of directors has approved the payment of an interim
dividend of $0.5625 per ordinary share for the third quarter
of 2021. The interim dividend will be paid in cash on October 6,
2021 to shareholders of record as of September 15, 2021.
Additionally, consistent with NXP’s historic policy of returning
excess cash flow to shareholders, the board of directors has also
approved a $2 billion expansion of its 2021 share repurchase
program. The new $2 billion share repurchase authorization is in
addition to the approximately $380 million remaining for repurchase
under previously authorized share repurchase programs.
Taxation – Cash Dividends Cash dividends will
be subject to the deduction of Dutch dividend withholding tax at
the rate of 15 percent, which may be reduced in certain
circumstances. Non-Dutch resident shareholders, depending on their
circumstances, may be entitled to a full or partial refund of Dutch
dividend withholding tax. If you are uncertain as to the tax
treatment of any dividends, consult your tax advisor.
About NXP SemiconductorsNXP Semiconductors
N.V. enables secure connections for a smarter world, advancing
solutions that make lives easier, better, and safer. As the world
leader in secure connectivity solutions for embedded applications,
NXP is driving innovation in the automotive, industrial & IoT,
mobile, and communication infrastructure markets. Built on more
than 60 years of combined experience and expertise, the company has
approximately 29,000 employees in more than 30 countries and posted
revenue of $8.61 billion in 2020. Find out more
at www.nxp.com.
Forward-looking StatementsThis document
includes forward-looking statements which include statements
regarding NXP’s interim dividend for the fourth quarter of 2020,
financial condition, and projected share repurchases, as well as
any other statements which are not historical facts. By their
nature, forward-looking statements are subject to numerous factors,
risks and uncertainties that could cause actual outcomes and
results to be materially different from those projected. These
factors, risks and uncertainties include the following: the
duration and spread of the COVID-19 outbreak, its severity, the
actions to contain the virus or treat its impact, and how quickly
and to what extent normal economic and operating conditions can
resume; market demand and semiconductor industry conditions; the
ability to successfully introduce new technologies and products;
the end-market demand for the goods into which NXP’s products are
incorporated; trade disputes between the U.S. and China, potential
increase of barriers to international trade and resulting
disruptions to our established supply chains; the ability to
generate sufficient cash, raise sufficient capital or refinance
corporate debt at or before maturity; the ability to meet the
combination of corporate debt service, research and development and
capital investment requirements; the ability to accurately estimate
demand and match manufacturing production capacity accordingly or
obtain supplies from third-party producers; the access to
production capacity from third-party outsourcing partners; any
events that might affect third-party business partners or NXP’s
relationship with them, including the outbreak of COVID-19 or the
requirements to suspend activities with customers or suppliers
because of changing import and export regulations; the ability to
secure adequate and timely supply of equipment and materials from
suppliers; the ability to avoid operational problems and product
defects and, if such issues were to arise, to correct them quickly;
the ability to form strategic partnerships and joint ventures and
to successfully cooperate with alliance partners; the ability to
win competitive bid selection processes to develop products for use
in customers’ equipment and products; the ability to achieve
targeted efficiencies and cost savings; the ability to successfully
hire and retain key management and senior product architects; and,
the ability to maintain good relationships with our suppliers. In
addition, this document contains information concerning the
semiconductor industry and NXP’s business generally, which is
forward-looking in nature and is based on a variety of assumptions
regarding the ways in which the semiconductor industry, NXP’s
markets and product areas may develop. NXP has based these
assumptions on information currently available, if any one or more
of these assumptions turn out to be incorrect, actual results may
differ from those predicted. While NXP does not know what impact
any such differences may have on its business, if there are such
differences, its future results of operations and its financial
condition could be materially adversely affected. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak to results only as of the date the
statements were made. Except for any ongoing obligation to disclose
material information as required by the United States federal
securities laws, NXP does not have any intention or obligation to
publicly update or revise any forward-looking statements after we
distribute this document, whether to reflect any future events or
circumstances or otherwise. For a discussion of potential risks and
uncertainties, please refer to the risk factors listed in our SEC
filings. Copies of our SEC filings are available on our Investor
Relations website, www.nxp.com/investor or from the SEC website,
www.sec.gov.
For further information, please contact:
Investors: |
Media: |
Jeff Palmer |
Jacey Zuniga |
jeff.palmer@nxp.com |
jacey.zuniga@nxp.com |
+1 408 518 5411 |
+1 512 895 7398 |
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