IR Reports Q3 Results and Planned Cost CutsOctober 29, 2002 by Jeff Shepard
International Rectifier Corp. (IR, El Segundo, CA) reported third-quarter net income of $11.0 million on revenues of $212.0 million, compared to net income of $9.6 million on revenues of $169.0 million in the prior-year quarter. That compares to net income of $16.1 million on revenues of $201.0 million in the second quarter. Meanwhile, overall orders grew 28 percent year-over-year and declined three percent sequentially.
The company also announced plans to further its cost-cutting actions, reducing factory utilization and using short-term plant shutdowns and short workweeks to reduce inventories by $10.0 million to $15.0 million during the quarter.
"We are currently evaluating steps to enhance our position in proprietary products and address weak market conditions," said Alex Lidow, IR's CEO. "We are targeting cost savings of approximately $55.0 to $65.0 million per year. Workforce reductions and related measures are expected to result in charges of $15.0 to $20.0 million, with additional charges possible in the December quarter."