Company News
National cull
NATIONAL SEMICONDUCTOR has manufacturing and support functions. worldwide and these actions will result
announced it would be cutting 26% of Notification to affected employees will in the elimination of 26 percent of the
its workforce after reporting sales of begin immediately. company’s workforce.
$292 million and net income of $21.1 As part of the manufacturing “The worldwide recession has
million, or 9 cents per diluted share, for consolidation plan, the company will impacted National’s business as
the third quarter of fiscal 2009, which close its assembly and test plant in demand has fallen considerably,” said
ended March 1, 2009. Compared to last Suzhou, China and its wafer fabrication Brian L. Halla, chairman and CEO.
year, sales decreased approximately 36 plant in Arlington, Texas. The closures “However, the actions we announced
percent from the $453 million reported will occur in phases over several today will help us remain competitive as
in the third quarter of fiscal 2008 and quarters, eventually resulting in the we continue to focus on growing
earnings per diluted share declined elimination of an additional 875 markets that can benefit from our new
from the 29 cents recorded last year. positions. energy-efficiency initiatives.”
National expects sales in the fourth The volume currently being
Issue II 2009
quarter of fiscal 2009 to decrease supported by these two facilities will be
square4
sequentially by 5 to 10 percent as the transferred primarily to other National
.com
company’s distribution channel locations. After the consolidation,
continues to be negatively impacted by National will have three manufacturing Dutch
the weak economy. facilities.
In response to economic conditions In total it is estimated that the
advice
and related business levels, National will company will ultimately incur between
take actions in the fourth quarter of $160 million and $180 million in
fiscal 2009 to reduce overall expenses charges, consisting of severances, asset ASM INTERNATIONAL has
oasiasemiconductor
and shift more of its R&D investments impairments and other exit-related announced that it has appointed
.eur
towards new and emerging growth costs, of which $130 million to $145 Frans van Houten as a temporary
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opportunities. As part of the plan, the million would likely be recorded in the advisor to the management board.
company will eliminate approximately fourth quarter of fiscal 2009 and the Frans van Houten, 48, will support
9
850 positions worldwide in product remainder in ensuing quarters. National ASMI’s management board in its on-
lines, sales and marketing, currently employs about 6,500 people going efforts to ensure the company
can withstand current extreme
economic and industry conditions.
The decision to appoint Mr. van
Advanced Energy joins the
Houten was jointly taken by ASMI
management and supervisory
workforce cull
boards, also taking into account the
recent recommendation from ASMI’s
largest shareholders Arthur del
ADVANCED ENERGY INDUSTRIES has officer. “This has led us to take Prado and Hermes as announced on
announced a reduction in workforce additional cost reduction measures in 28 January 2009. Mr. van Houten is
and other cost reductions, as indicated order to streamline our operations and the former chief executive officer of
on their fourth quarter 2008 earnings enable us to continue to focus on key NXP and the former head of the
call. In response to the deteriorating market opportunities.” Philips’ Semiconductor division.
economic conditions and weakening These cost reductions are expected Chuck del Prado, ASMI Chief
demand from the company’s end to reduce salary costs by approximately Executive Officer, said, “Frans van
markets, the company is reducing its $8.2 million annually. Today’s measures Houten has an excellent reputation
global workforce by approximately 330 along with other discretionary spending and solid experience in the
people or 22% of total headcount reductions, will result in approximately semiconductor industry. He will
across all functional areas and $21 million of savings over the next provide valuable support to ASMI
geographies and lowering the salaries three quarters and will lower the management during the current
of management and executive officers company’s breakeven point to $55 market crisis. His appointment is a
by an additional 5%, totalling 15% million by the end of the second prudent and sensible step and
overall, effective April 1, 2009. quarter of 2009. Total restructuring demonstrates that ASMI is actively
“While we were hopeful that charges, including those from cost taking adequate measures to put
conditions would begin to stabilize, the reductions announced in December, will itself in the best possible position to
markets we serve have nonetheless be approximately $3.8 million in the weather the current market turmoil
continued to deteriorate,” said Dr. Hans first quarter of 2009 and approximately and to respond to the challenges
Betz, president and chief executive $800,000 in the second quarter of 2009. arising there from.”
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