Applied Materials to cut 1,800 jobs; profit falls 45%

[UpInArms]

Source: CBS Marketwatch

SAN FRANCISCO (MarketWatch) -- Applied Materials Inc. on Wednesday reported a fourth-quarter profit that fell 45% as semiconductor-and-solar panel equipment maker delivered weaker sales due to broad declines in corporate spending on technology products. The company said it would slash 1,800 jobs in order to cut its costs over the next year.

Applied Materials (AMAT: 9.95, -0.70, -6.6%) said that it earned $231 million, or 17 cents a share, on sales of $2.04 billion. During the same period a year ago, the semiconductor-equipment and solar panel maker earned $422 million, or 30 cents a share, on sales of $2.37 billion. New product orders totaled $2.21 billion, essentially flat with the year-ago quarter.

Applied Materials said that excluding one-time items, it would have earned $264 million, or 20 cents a share. Analysts surveyed by FactSet Research had forecast Applied Materials to earn 17 cents a share on $1.97 billion in revenue.

While Applied Materials topped Wall Street's forecasts, the reality of the overall economic slowdown was evident in comments from Chief Executive Mike Splinter. In a statement, Splinter said that beginning in its current business quarter, Applied Materials would "implement further cost-reduction actions due to declining market conditions, and we will invest in strategic priorities."

And in order to do that, Applied Materials intends on cutting about 12% of its workforce, or about 1,800 jobs, as part of efforts to reduce its overall expenses by $400 million annually. The company said it would make the job cuts "through a combination of attrition, voluntary separation and other workforce reduction programs."

Read more: http://www.marketwatch.com/news/story/Applied-Materials-cut-1800-jobs/story.aspx?guid=%7B0DEDB95E%2D9525%2D4173%2DB058%2D9C8640EFF441%7D

[jpak]

1. Obama's renewable energy policies will turn this around

:thumbsup:

[OwnedByFerrets]

2. How about starting at the top and working down.