December 8, 2023

Earthquake Damage at Plants Affects Quarterly Income at Texas Instruments

DALLAS (AP) — The chip maker Texas Instruments said Monday that production setbacks linked to the March 11 earthquake and tsunami in Japan curbed its first-quarter net income and would cut into second-quarter growth.

Richard K. Templeton, the Texas Instruments chief executive, said that the quarter started strong, but the Japan earthquake damaged two of its factories in the country and disrupted local demand. He said that one of the company’s Japanese factories would soon be back in full production and that he expected the second factory damaged by the quake to be running at full speed in July, as predicted. But many of the company’s Japanese customers are still working on reopening their factories, which could result in supply chain issues.

“We expect growth in the second quarter, though it will be pressured by the situation in Japan. Provided consumer and enterprise demand remain strong, we expect a good second half of the year,” Mr. Templeton said.

For the quarter, Texas Instruments earned $666 million, or 55 cents a share, compared with $658 million, or 52 cents a share, in the first quarter of 2010. The company said repercussions from the quake trimmed $30 million, or 2 cents a share, from results.

Revenue rose 6 percent, to $3.39 billion.

On average, analysts had expected earnings of 58 cents a share on nearly $3.40 billion in revenue, according to FactSet.

Revenue from T.I.’s analog chip unit rose 12 percent, to $1.54 billion. Revenue from its wireless chip unit fell 8 percent, to $658 million, partly because of “substantially weaker demand” for wireless baseband chips.

Shares of Texas Instruments, which is based in Dallas, fell 54 cents, to $34.25, in after-hours trading. They fell 20 cents in regular trading, to $34.79.

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