...The Stable Outlook reflects Fitch Ratings' increased confidence in Texas Instruments Incorporated's (TI) free cash flow profile, given expectations for nearly $1 billion of free cash flow in 2009 amid the current downturn. While lower than the $2 billion TI averaged over the past several years, free cash flow will be at the higher end of Fitch's range of expectations exiting 2008, despite likely facing greater-than-anticipated sales declines of more than 15% in 2009. Fitch believes TI's restructuring actions, which should reduce costs by $700 million annually, and inventory reductions, via significantly lowering production levels, demonstrate TI's ability to preserve free cash flow. Fitch also expects TI will continue moderating share repurchases to approximate expected free cash flow and to maintain cash balances in excess of $1.5 billion. Revenues for the quarter ending Sept. 30 should sequentially increase in the mid- teens, given TI's 1.14x book-to-bill ratio exiting the second quarter...
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