Turnaround Is Seen at Texas Instruments --- Industry Gains and New Management Credited
DALLAS -- Jerry R. Junkins, with a more open management style and a back-to-basics strategy, is getting Texas Instruments Inc. back on its feet.</br></br>When Mr. Junkins took over as president and chief executive officer a year ago, Texas Instruments was staggering toward a $118.7 million 1985 loss -- only its second deficit as a public company -- after posting record profit for 1984. Its semiconductor, computer and seismic businesses were mired in recession, and even its military electronics business temporarily had gone flat.</br></br>Although the company was still in the red in the first quarter, Mr. Junkins appears to have stemmed the red-ink flow. Wall Street analysts have predicted that Texas Instruments will earn nearly as much this year as the size of its loss last year and say it might post record earnings next year. They forecast earnings of $4 to $5 a share this year and $13.50 to $14 a share next year. In its best year so far, the company earned $316 million, or $13.05 a share, in 1984 on sales of $5.74 billion. Sales last year were $4.92 billion.</br></br>Analysts generally are standing by that forecast even though semiconductor orders slipped slightly last month. The price of Texas Instruments' common fell $3 a share yesterday to close at $119.50 in New York Stock Exchange composite trading, a drop of $10.50 a share since Friday. Analysts attribute the drop to investor concern about the economy in general and semiconductor stocks in particular. Because of its high price and relatively small number of shares available for trading, Texas Instruments tends to be more volatile than many other stocks. But even with the latest drop, its stock price is nearly 40% higher than it was when Mr. Junkins took over last year.</br></br>Much of Texas Instruments' improved outlook reflects a semiconductor industry recovery in the past year. Customers have been rebuilding inventories, and the falling international value of the dollar as well as mounting trade friction have taken the edge off Japanese import competition. Moreover, with the departure of U.S. competitors from parts of the business in last year's recession, Texas Instruments has been gaining market share. But most industry specialists also credit Mr. Junkins for the company's improved outlook.