By Suzanna Kerridge, 15 September 1998 12:22
NEWS Rockwell International is still suffering financial losses at the hands of its semiconductor unit. The company has reported $265m in charges and operating losses as a result of its decision to spin off its chip making division. However, the one-time charges exceeded expectations. Rockwell predicted a $55m loss in operating costs for its fiscal fourth quarter and will take an after-tax charge of $60m for the closure of its Colorado Spring facilities. The company will also take a $10m charge for miscellaneous asset write-offs and devaluations, $55m reduction in the value of modem-chip inventories and $20m in charges for potential litigation losses in a patent case. Rockwell said it will lay off 700 staff - 10 per cent of its worldwide workforce. Dwight Decker, president of the semiconductor unit, said the redundancies are necessary to cut $200m out of the annual operating costs.
In order to post a comment you need to be registered and logged in.
Log in or create your silicon.com account below