Texas Instruments Blames Earthquake for Weak 1Q Results

By FOXBusiness

Texas Instruments (NYSE:TXN) revealed late Monday a slightly improved first-quarter profit, though both its earnings and second-quarter outlook fell short of estimates, led by uncertainty in Japan as the company struggles to repair its facilities and rebound from the catastrophe.

The Dallas-based company posted net income of $666 million, or 55 cents a share, compared with $658 million, or 52 cents a share, in the same quarter last year, missing the Street’s view of 58 cents.

Continue Reading Below

Attributing the loss to the March 11 earthquake in Japan that led to charges of $30 million, Texas Instruments said its operating profit slipped 4% to $908 million. Two of its manufacturing facilities in Japan were injured during the nation’s largest earthquake on record.

Revenue for the chip maker was $3.39 billion, up 6% from $3.2 billion a year ago, narrowly below average analyst estimates polled by Thomson Reuters of $3.4 billion.

Heading the sales was its analog and embedded processing divisions, which widened 12% and 21%, respectively, to $1.5 billion and $533 million. Wireless revenues fell 8% from the year-earlier period to $717 million, and total orders slipped 2% to $3.58 billion.

Blaming the earthquake for its weak second-quarter outlook, the company said it sees revenue in the range of $3.41 billion to $3.69 billion on earnings between 52 cents and 60 cents. Analysts on average are looking for revenue of $3.52 billion.

Texas Instruments said it remains unclear when the supply of the silicon and wafers it uses will return to normal.

What do you think?

Click the button below to comment on this article.