06:35 AM EDT, 04/29/2025 (MT Newswires) -- NXP Semiconductors' ( NXPI ) US-listed shares dropped early Tuesday as the Dutch chipmaker warned that it's navigating a "very uncertain" environment due to tariffs despite reporting better-than-expected first-quarter results, while the company's chief executive announced his retirement.

Kurt Sievers, who has been CEO of the firm since May 2020, intends to retire by the end of the current year for personal reasons, NXP said late Monday. The semiconductor manufacturer's board of directors appointed Rafael Sotomayor as president to succeed Sievers, effective April 28, with plans for him to take over as CEO on Oct. 28.

NXP's shares on the Nasdaq fell nearly 8% in the most recent premarket activity.

The company reported adjusted earnings of $2.64 per share for the quarter ended March 30, down from $3.24 the year before, but ahead of the FactSet-polled consensus of $2.61. Revenue declined 9% year over year to $2.84 billion, but surpassed the Street's view for $2.83 billion.

"We are operating in a very uncertain environment influenced by tariffs with volatile direct and indirect effects," Sievers said. "Considering these external factors, we are redoubling our efforts to manage what is in our direct control, enabling NXP to drive solid profitability and earnings."

Earlier this month, US President Donald Trump announced sweeping new tariffs on imports from several nations, including China and Japan. Trump later declared a 90-day pause on duties for non-retaliating countries. However, the US and China have been in a deadlock, having raised tariffs on each other's goods multiple times.

For the ongoing three-month period, the firm expects adjusted EPS to be in a range of $2.46 to $2.86, in line with the current average analyst forecast on FactSet at the midpoint. Revenue is pegged at $2.8 billion to $3 billion. The Street is looking for $2.86 billion.

"NXP's first-quarter results and guidance for the second quarter underpin a cautious optimism that NXP continues to effectively navigate through a challenging set of market conditions," according to Sievers.

Revenue in the automotive segment slid 7% year over year to $1.67 billion in the first quarter, while industrial and internet of things logged an 11% drop to $508 million. Mobile revenue moved down 3% to $338 million, while sales in the communications infrastructure business slumped 21% to $315 million.

The chipmaker's gross margin was 55% during the quarter versus 57% in the prior-year period. Operating expenses fell to $855 million from $921 million last year, the company said.