© Business | January 22, 2014

Over 1000 jobs to go from TI

As the company is reducing investments in markets that do not offer satisfactional growth and returns, the company will drop about 1'100 jobs.
Texas Instruments' fourth quarter showed mostly ups, however, YoY there were some dips. Revenue for 4Q13 was USD 3,028 million, up 2% from 3Q13's USD 2,979 million. However, looking YoY revenues fell 5% from USD 12,825 million in 2012, to USD 12,205 million during 2013.

Net income however, showed nothing but ups, in 4Q13 net income amounted to USD 511 million, up 94% from USD 264 million in 3Q13. YoY net income increased 23% from USD 1,759 million to 2,162 million.

TI's fourth-quarter results and first-quarter outlook include restructuring charges for cost-saving actions in Embedded Processing and in Japan. The company is not exiting any markets or discontinuing any existing products but will reduce investments in markets that do not offer sustainable growth and returns. The savings will reflect the elimination of about 1'100 jobs worldwide. The charges are expected to be about USD 80 million, of which USD 49 million was included in the fourth quarter of 2013 and about USD 30 million will be included in the first quarter of 2014. The company expects to achieve annualised savings of about USD 130 million by the end of 2014.

Rich Templeton, TI's chairman, president and CEO, made the following comments: "TI's outlook for the first quarter of 2014 is for revenue in the range of USD 2.83 billion to USD 3.07 billion and earnings per share between USD 0.36 and USD 0.44, including charges. The annual effective tax rate for 2014 is expected to be about 27 percent, which reflects the expiration of the R&D tax credit.”


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