Texas Instruments Net Edges Up as Low Chip Prices Hit Revenue
Texas Instruments Inc. on Tuesday said first-quarter earnings rose 4.5% as increased demand for specialized semiconductors offset lower prices for memory chips.
The Dallas-based chip maker said profit from operations rose to $138 million, or 70 cents a share, from $132 million, or 68 cents, in the year-earlier period.
The results beat analysts’ average earnings estimate of 57 cents.
TI shares rose $1.50 to close at $84.50 on the New York Stock Exchange.
Semiconductor sales lagged last year’s levels because of lower prices for memory chips, dragging down total revenue, the company said. TI’s revenue fell 16% to $2.26 billion from $2.68 billion.
Memory chip prices fell 70% in the first quarter from the year-earlier quarter, the company said.
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Mountain View, Calif.-based Sun Microsystems Inc. reported fiscal third-quarter earnings that beat analysts’ expectations as sales rose 15%.
For the three months ended March 30, the computer maker said net income was $223.5 million, or 58 cents a share, compared with $143.3 million, or 37 cents, in the year-earlier quarter.
Results for the latest quarter include a pretax charge of $22.9 million to write off in-process research and development, and a pretax gain of $62.2 million. Without those items, profit would have been 51 cents a share.
The company had been expected to report earnings of 47 cents.
At a Glance:
Salomon Inc. posted a 37% drop in first-quarter profit of $173 million, or $1.44 per share, from $276 million, or $2.44, last year. It bucked the industry trend as it was pummeled by falling bond prices as well as significantly weaker commodities trades. Meanwhile, Merrill Lynch & Co. posted record profit of $465 million, or $2.34 per share, up 13% from $410 million, or $2.03, a year ago. Paine Webber Group Inc. said earnings increased less than 1% to $100.8 million, or 99 cents per share, compared with $100.5 million, or 96 cents, for the year-ago period.
Pasadena-based Jacobs Engineering Group Inc. posted record second-quarter net income of $11.4 million, or 44 cents per share, compared with $9.9 million, or 38 cents, in the year-ago quarter.
Caterpillar Inc. reported a record first-quarter profit of $394 million, or $2.08 a share, compared with $296 million, or $1.53, a year ago.
Genentech Inc. said first-quarter profit fell 17% to $31.6 million, or 25 cents a share, from $38.2 million, or 31 cents, a year ago.
Honeywell Inc. said first-quarter earnings rose 16% to $75.6 million, or 60 cents a share, from $65.1 million, or 51 cents, a year ago.
Eastman Kodak Co. said its first-quarter profit fell to $149 million as sales were hurt by the strong dollar. Excluding an acquisition-related charge, the company’s earnings were $272 million, or 80 cents per share, nearly flat with $274 million, or 80 cents, in the year-ago quarter.
Mirage Resorts said it had the second-best quarter in its history, posting first-quarter net income of $56.7 million, or 30 cents per share, including a nearly equal charge and gain, compared with $64.6 million, or 33 cents, including a $5.2-million gain, a year ago.
Bay Networks Inc. said its fiscal third-quarter profit from operations was $20.7 million, or 10 cents a share, less than the year-earlier net income of $29.2 million, or 15 cents. Results included a pretax charge of $32.2 million.
Johnson & Johnson posted a 15% increase in first-quarter profit, earning $909 million, or 68 cents per share, compared with $790 million, or 59 cents, a year ago.
Pfizer reported net income of $602 million, or 93 cents a share, up 16% from $517 million, or 81 cents, in the year-earlier period.
Owens Corning said its first-quarter net income rose 7.7% to $42 million, or 79 cents a share, from $39 million, or 75 cents, a year ago.
Xircom Inc. of Thousand Oaks reported second-quarter income from operations of $4.88 million, or 22 cents a share, more than four times the year-earlier $1.2 million, or 6 cents.
Textron Inc. said first-quarter earnings rose 15% to $125 million, or $1.47 a share, from $109 million, or $1.26, before a charge last year.
Archer-Daniels-Midland Co. said its fiscal third-quarter earnings fell 63% to to $55.8 million, or 10 cents a share, from $152.4 million, or 28 cents, a year ago.
Coca-Cola Enterprises Inc. reported a narrower-than-expected first-quarter loss of $27 million, or 24 cents a share, compared with a loss of $3 million, or 1 cent, in the year-earlier period.
Weyerhaeuser Co. said first-quarter earnings were down a steep 85% to $21 million, or 10 cents per share, from $142 million, or 72 cents, in the year-earlier period.
Earthlink Network Inc. of Pasadena reported a first-quarter net loss of $8.4 million, or 79 cents per share, compared with a net loss of $4.9 million, or 79 cents, a year ago.
