Texas Instruments 3Q profit falls with demand
DALLAS (AP) - Texas Instruments Inc. said Monday that its third-quarter net income fell 30 percent as demand weakened.
The company earned $601 million, or 51 cents per share, for the quarter that ended Sept. 30, down from $859 million, or 71 cents per share, a year ago. Revenue fell 7 percent to $3.47 billion, from $3.74 billion.
The company said expenses from its purchase of National Semiconductor were 9 cents per share, meaning it would have earned 60 cents per share without those expenses. Analysts surveyed by FactSet had been expecting earnings of 58 cents per share on revenue of $3.33 billion.
The company said profits were hurt because of costs from using its factories less as it reduced production in response to weaker demand. It also had charges for out-of-date inventory. Those were partially offset by insurance proceeds related to the Japan earthquake in March.
Revenue and operating profits fell in all four sectors.
Orders of $3.07 billion were down by 10 percent from a year ago, and down 15 percent from the second quarter.
The company said it expects fourth-quarter earnings of 28 cents to 36 cents per share, with revenue of $3.26 billion to $3.54 billion. It said earnings will be hurt by 15 cents per share because of acquisition-related costs.
Analysts had been expecting fourth-quarter earnings of 54 cents per share, with revenue of $3.35 billion.
The company’s stock fell 50 cents, or 1.6 percent, to $31.19 in extended trading after the release of results. Earlier Monday, it increased $1.23, or 4 percent, to close at $31.69.