Alexei Oreskovic
Newly private Freescale Semiconductor grew its sales 9% in the fourth quarter, despite tough business conditions in many of its key markets.
The Austin, Texas, chipmaker's fourth-quarter revenue was $1.62 billion, at the high end of its guided range of $1.54 billion and $1.62 billion. "It's a challenging environment out there, so we're pleased with our performance," said CEO Michel Mayer in an interview with TheStreet.com. Sales in Freescale's transportation and standard products business grew 4.3% year over year, as softness in the U.S. auto industry was offset by steady business in the Japanese car market, where Mayer said Freescale's revenue increased 50% year over year. The company's wireless and mobile solutions group posted $578 million in fourth-quarter sales, compared with $476 million in the year-ago period. Freescale reported earnings before taxes, depreciation and amortization in the fourth quarter of $401 million vs. $362 million in the year-ago period. The company said it was not able to provide net income yet, as it was still in the process of transitioning to purchase-based accounting as a result of its change of ownership. In December Freescale became a private company in a $17.6 billion leveraged buyout by a consortium of private-equity firms led by Blackstone Group. Mayer said the company's business and operations have not changed since the LBO.
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