Texas Instruments Loses $3.9 Million in Quarter

Texas Instruments, dependent on the hard-hit semiconductor, computer and oil industries, saw its profits vanish in the latest quarter and said it would eliminate another 1,800 jobs and cut its capital spending plans by $50 million.

The Dallas-based firm reported a loss of $3.9 million for the quarter ended June 30, a sharp falloff from earnings of $85.9 million reported a year earlier. Revenue totaled $1.24 billion, a 16% decline.

Chairman Mark Shepherd Jr. and President Jerry R. Junkins said the company’s semiconductor, computer and geophysical divisions all lost money. The deficits were only partly offset by more favorable results in TI’s government electronics and materials units, they said.

The semiconductor slump is “possibly the most severe in the history of the industry,” TI said. While reiterating their confidence in the long-term growth potential of semiconductors, the executives said they don’t know when things will improve.

The company said it is cutting its capital spending plans for this year to $535 million from earlier expectations of $585 million. It didn’t specify what programs would be cut or elaborate on its plans for additional layoffs. The company said it will also continue the reduced work schedules implemented over the past several months.