Rockwell International will acquire Western Digital chip-making plant

Article Abstract:

Military contractor Rockwell International Corp pays $115 million to Western Digital Corp for an Irvine, CA, silicon wafer fabrication plant in order to advance Rockwell's commercial electronics business. Lanny Ross, president of the communications segment, says the acquisition is part of Rockwell's strategy to apply integrated advanced circuitry in the market for personal electronics. The total investment in the plant over five years will be several hundred million dollars. Half of Rockwell's revenue comes from government contracts, but the company's telecommunications business provides electronic parts for modems and facsimile machines to manufacturers around the world, generating $500 million in annual sales. New digital processes are under development to enhance mobile communications performance.

Guided missiles and space vehicles, Electronic components, not elsewhere classified, Semiconductor industry, Mergers, acquisitions and divestments, Integrated circuit fabrication, Rockwell Automation Inc., Telecommunications, Manufacturers, Acquisition, ROK

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Western Digital sees 3rd-period net below forecasts

Article Abstract:

Disk-drive manufacturer Western Digital Corp expects income for 3rd qtr FY 1993, ending Mar 27, to fall 'significantly' short of analysts' predictions of 20 cents to 26 cents per share. Western Digital blames the reduction on fierce cuts in the prices of the 3.5-inch drives that make up four-fifths of Western Digital's revenue. The prediction drops Western Digital stock $1.50 to $6.625 in late composite trading on the New York Stock Exchange. Maxtor Corp and Conner Peripherals Inc are said to be the most aggressive price-cutters in the industry. In 2nd qtr FY 1992, Western Digital posted a net loss of $18.6 million, or 64 cents per share, on $229.3 million in revenue.

Profits, Forecasting, Third Quarter, Profit, Reduction

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Western Digital has negotiations to rearrange debt

Article Abstract:

Western Digital Corp is restructuring its $160 million bank debt and is asking its lenders to roll over existing indebtedness as it becomes due. The company is not honoring payments on any of its bank loans until a restructuring agreement has been completed. The disk drive manufacturer also posts a loss of $98.5 million for the second fiscal quarter ended Dec 29, 1990, against a net income of $8.6 million a year ago. That loss includes pretax restructuring charges of $66 million. For the second quarter, revenue fell 13.4 percent to $230 million from $265.6 million a year ago.

Contracts, Revenue, Financing, Financial Stability, Financial Report, Losses, Second Quarter

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