Freescale to axe 1000

Freescale Semiconductor plans to continue streamlining its operations and reducing expenses. The company plans to eliminate approximately 1,000 positions worldwide and record total restructuring charges in the fourth quarter of 2004 of approximately $65 million associated with these actions. "Reducing our infrastructure costs and rebalancing our resources generates savings that allow us to accelerate new product development, enhance technology leadership and drive greater customer intimacy across all our businesses," said Michel Mayer, chairman and CEO. Freescale today also reported its financial results for the third quarter ended October 2, 2004. Net sales in the third quarter were $1.43 billion, compared to $1.23 billion in the third quarter of 2003 and $1.46 billion in the second quarter of 2004. Gross margins in the third quarter were 39.0% compared to 30.3% in the third quarter of 2003 and 38.4% in the second quarter of 2004. Net income for the third quarter was $57 million, compared to a loss of $106 million in the third quarter of 2003 and a profit of $43 million in the second quarter of 2004. Operating earnings in the third quarter of 2004 included $19 million of expenses related to the separation from Motorola, Inc.