- Obama military downsizing leaves U.S. too weak to counter global threats, panel finds
- Sen. Tom Coburn vows to slow down budget-busting bills ahead of recess
- Obama fantasizes about more executive power, signs new order on federal contractors
- Clintons call Klein, Halper, Kessler ‘a Hat Trick of despicable actors’: report
- Boehner accuses Obama of ‘legacy of lawlessness’
- Pro-marijuana group claims responsibility for Brooklyn Bridge flag swap
- Young adults shun Obamacare mostly due to cost: survey
- Stabbing attack on transgender girl, 15, was ‘bias motivated,’ police say
- LGBT adults still lean overwhelmingly toward Democratic Party
- Lawmakers rattled by Syria genocide horrors, call on Obama to act
Texas Instrument to close plants in Houston, Japan
Question of the Day
DALLAS (AP) - Texas Instruments will close two of its older computer-chip factories, one in Houston and one in Hiji, Japan, and lay off about 1,000 workers to cut costs.
The company announced the cutbacks Monday in its fourth-quarter earnings report. Its results topped analyst estimates, but the company offered tepid forecast for the first quarter of this year.
Texas Instruments shares gained $1.11, or more than 3 percent, to $34.30 after the earnings and layoff announcements.
The planned layoffs represent about 3 percent of the 34,800 workers that Texas Instruments Inc. employed as of Sept. 30. Texas Instruments picked up about 5,000 additional workers four months ago when it completed its $6.5 billion acquisition of another chip maker, National Semiconductor.
Closing the two factories will save Texas Instruments about $100 million annually. The Houston plant is 42 years old while the Japan factory opened 32 years ago. The closures are to occur in the next 18 months. Production will be shifted to other Texas Instruments plants.
Texas Instruments will absorb $215 million in charges to pay for the closures. About $112 million of that amount was recorded in the fourth quarter. The remainder will be scattered through 2013.
Despite the charges, Texas Instruments still fared better in October through December than analysts and its own management anticipated.
CEO Rich Templeton said the pleasant surprise stemmed from improving demand for most of the company’s products, leading him to believe that the company is moving beyond a downturn that undercut its financial performance for most of last year.
The company, which is based in Dallas, earned $298 million, or 25 cents per share, in the fourth quarter. That was a 68 percent drop from net income of $942 million, or 70 cents per share, at the same time in 2010.
Wall Street had been bracing for a steeper decrease to 23 cents per share, according to FactSet.
The past quarter’s earnings were lowered by a charge of 16 cents per share to account for the residue of National Semiconductor and the plant closure charge, which worked out to 7 cents per share for the period.
Fourth-quarter revenue dipped 3 percent from the previous year to $3.42 billion, but was about $160 million high than analysts forecast on average.
The company projected its earning per share for the three months ending in March will range from 16 cents to 24 cents. Analysts had been expecting 32 cents per share. Texas Instruments believes its first-quarter revenue will range from $3 billion to $3.28 billion. Analysts projected first-quarter revenue of $3.22 billion, according to FactSet.
TWT Video Picks
Both parties recognize the Democrats' scam
- Inside the Ring: Israel surprised by Hamas tunnel network
- CRUZ: A tale of two hospitals: One in Israel, one in Gaza
- Chicken pox outbreak puts illegal immigrant facility on lockdown
- Obama military strategy too weak for future security, panel reports
- Report: 40% of weapons sent to Afghanistan are unaccounted for
- Israel surprised by Hamas tunnel network
- CIA admits improperly hacking Senate computers in search of Bush-era information
- Islamic militants seize Benghazi as U.S. evacuates Libya
- 'Big Bang' star Mayim Bialik helps send bulletproof vests to IDF
- 3 African leaders cancel trip to U.S. over Ebola outbreak; Obama still plans summit
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world