The second largest U.S. chipmaker, Texas Instruments Inc., announced that two plants located in Japan were damaged and that it would hurt sales in the first and second quarters. The plant located in Mihio, located 40 miles northwest of Tokyo, sustained major damage and will not be able to return to full shipment in till September. The other plant was not damaged as bad and it should return to full shipment by mid April. Both plants produced 10% of TI’s output.
More after the break
Texas Instruments is looking to shift production of their chips to other facilities and has found alternatives for around 60% of their lost production. Revenue will be affected by many factors. These include the ability to move production, along with the amount of demand from customers in Japan.
On March 8th TI’s forcasted net income for the first quarter was to be 56-60 cents a share of 3.34-3.48 billion. After the announcment regarding the damage to the plants in Japan TI lost between 84 cents-$33.72 in extended trading. Since then they have gained back between 17 cents-$34.56 on the New York Stock Exchange. Texas Instruments said that they will be able to provide more information around April 18th in an earnings report.
I would like to say on the behalf of thedroidguy.com that our thoughts are with those in Japan and we extend our deepest condolences to those that have lost loved ones.