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New Braunfels Herald Zeitung (Newspaper) - October 27, 1985, New Braunfels, Texas Texas Instruments lays off 2,200 COLLEGE STATION (AP) — A shocked silence greeted news that Texas Instruments Inc.’s plan to weather a sharply depressed semiconductor industry did not include its College Station plant. “It was a shock when someone tells you your job is going away,” site manager Ed Kuehn said after TI announced Friday it was closing two plants, laying off 2,200 more employees and rearranging its operations. “It was traumatic ... some cried,” he said. TI’s College Station plant, which employs about 250 people, will be shut down along with the firm’s 900-person operation in El Salvador, company spokesman Jim Bradbury said from TI’s Dallas headquarters Friday. In addition, the wafer-production facility at TI’s Northwest Houston plant will close and be consolidated in Temple as the company tries to shave more than $70 million from its operating costs, Bradbury said. The job cuts bring to 7,000 the number of layoffs the company has been forced to make since the year began, he said. After the latest round, TI will employ about 80,000 people. “I can’t speculate on whether there will be further cuts in personnel,” Bradbury said. “What we really need is an improvement in the semiconductor industry.” The layoff news followed another quarter of depressed earnings for the Dallas-based electronics firm. The company announced a third-quarter loss of $82.8 million, or $3.30 per share, compared with net income of $85.8 million, or $3.54 per share, in 1984’s third quarter. Excluding charges for plant closings and employment reductions, the third-quarter loss would have been 76 cents per share, TI Chairman Mark Shepherd Jr. said. Net sales billed for the three months ended Sept. 30 were $1.2 billion, down 16 percent from last year’s third quarter, and Shepherd attributed that loss to sharply reduced volume and lower prices for semiconductors. During 1985’s first nine months, net sales billed were $3.7 billion, down 12 percent from the same quarter of 1984. Year-to-date net loss was $77.6 million, or $3.12 per share, compared with net income of $251.5 million, or $10.43 per share, in the first three quarters of 1984. In addition to the layoffs, TI will defer for at least six months wage and salary increases that would have taken effect in the first half of 1986, Shepherd said. “We understand the personal impact of this decision on Tiers throughout the world, but we believe this is a necessary step to keep operating costs under tight control during this difficult period,” he raid. Charges for TI’s write-down of manufacturing capacity and other plant consolidations weighed heavily on the company’s third quarter earnings and “current market conditions indicate that these actions will not return the company to profitability in the short term,” Shepherd said. I^ast week, United Technologies announced that it was closing its Mostek Inc. division, a semiconductor producer headquartered not far from TI, after months of piecemeal layoffs. Shepherd said, “TI’s balance sheet remains strong, and financial resources are adequate to support our needs. “TI’s cash balance at the end of the third quarter was $187 million, compared with $207 million at the end of this year's second quarter and $274 million at the end of 1984.” Although the College Station and El Salvador plants will be closed, TI’s Northwest Houston plant will lose only its wafer division and will still house a geophysical systems division, Bradbury said. The closings and consolidations will begin during the fourth quarter, and some will take six to nine months to complete, he said.Achilles Laura hijackItalian officials issue warrant for Abbas' arrest SIRACUSA, Sicily (AP) — Italian judicial authorities have issued an arrest warrant for PLO official Mohammed Abbas in connection with the hijacking of the Achille l^auro cruise ship, Italian news agencies reported Saturday. The agencies AGI and ANSA said that the warrant was issued by magistrates in Siracusa who are investigating the hijacking together with prosecutors in Genoa. AGI said Abbas was charged with murder, kidnapping, hijacking and transportation and possession of arms and explosives. The United States has accused Abbas, a member of the Palestine Iteration Organization executive committee, of masterminding the hijacking. At least five suspects are in custody in connection with the hijacking in which a 69-year-old American passenger, Leon Klinghoffer of New York City, was slain. They include the four men accused of taking control of the ship on Oct. 7 and an Arab arrested in Genoa in September. News agencies said another suspect identified as Yousef Ah Youseb Esmail, 30, was arrested in Rome. The news agencies said Esmail, a Palestinian, was picked up several days ago and was being held in a northern jail for interrogation by magistrates in Genoa, where the liner began its cruise before being hijacked Oct. 7 off Egypt. ANSA said he was believed to be Will Reagan go along with cuts? WASHINGTON (AP) — House Democrats are raising questions about whether President Reagan would go along with mandated cuts in military spending that could bt* triggered by a plan to force a balanced federal budget by 1991 The answers to their questions are critical to the future of the landmark proposal. Congressional negotiators considering the Senate-passed plan to erase budget deficits by 1991 are set to begin serious bargaining this week in an attempt to draft a version that can pass both houses of Congress. They have spent the last two weeks trying to understand the implications of the proposal for the way the government does business. Under the Senate plan that Reagan has embraced, there would be statutory ceilings on budget deficits, beginning with $180 billion in the current fiscal year and decreasing by $36 billion a year until zero is reached in 1991. If Congress and the White House are unable to agree on steps to meet the annual goals, the plan would direct the president to impose automatic, across-the-board spending cuts to keep deficit spending within the ceiling. Such action would be suspended in times of war. So far, critics also are questioning: I he constitutional implications of the automatic cuts that could be triggered in the plan and whether this represents an undue transfer of power from Congress to the White House. — Whether such automatic actions, regardless of the nation’s economic condition, could set off a string of recessions. — How to figure when the automatic cuts should be triggered and then what would be cut. — What is the base line to be used as the yardstick for determining whether specified goals are being met. At the end of last week, Defense Secretary Caspar Weinberger fueled new concerns with comments that the president will reject a plan that could force cuts in the Pentagon’s budget. The president “can’t have his constitutional authority constrained to the point where his only consideration is. the attempt to reduce deficits,” Weinberger said in an interview with Human Events, a conservative weekly publication. “We can’t have our defense and our security policy be a total prisoner of a rigid formula designed to try to reduce the budget,” he said. The comments set off alarms on Capitol Hill, where legislators said they were concerned about the administration’s commitment to the plan and how the president would react to the order for acorss-the-board cuts. “If in the next three, four, five days we develop a good deal of doubt on that issue, honest doubt, then I think the thing’s in deep water with both Democrats and Republicans,” said Rep. Richard Gephardt, D-Mo., one of the House negotiators. But Sen. Warren Rudman, R-N.H., one of the coauthors of the plan — with Sens. Phil Gramm, R-Texas and Ernest Hollings, D-S.C, — dismisses Weinberger’s remarks. “Weinberger is speaking for himself, he’s not speaking for this administration,” Rudman said. He also scoffed at suggestions the president would ignore mandated cuts. “Any president who were to say, ‘I choose not to obey this part of the law but I will obey that part of the law,’ is going to find himself quickly enjoined by a court of competent jurisdiction,” Rudman said. Nonetheless, Democrats have said they may ask Weinberger and other senior Reagan administration officials to appear before the conferees to explain how Reagan would carry out cuts provided under the plan. Meanwhile, tune is becoming a factor because the plan is attached to urgently-needed legislation raising the national debt limit — the government’s borrowing authority — to more than $2 trillion. The government has reached its current borrowing limit of $1,824 trillion and has used a variety of bookkeeping tricks and unprecedented actions to keep money in the federal till. Engine fire aborts flight GRAPEVINE (AP) - A fire aboard a jumbo jet broke out when some unused fuel ignited in an engine tailpipe, forcing the pilot to abort takeoff for a flight to San Francisco, a Delta Air lines official said. There were no injuries in the incident Friday night involving the three-engine Lockheed L-1011 Tristar, Federal Aviation Administration spokeswoman Gerrie Cook said. The pilot activated an internal extinguisher in the engine, putting out a fire there. A grass fire that started below the plane was extinguished by fire crews at Dallas-Fort Worth International Airport, said Delta spokesman Jim Ewing. A flight attendant, who apparently saw the flames from inside the plane, “released the internal emergency chute and some of the passengers deplaned,” he said. About 15 of the 213 passengers fled down an emergency slide, and the remaining passengers and crew of 13 safely evacuated the plane minutes after the fire, Ms. Cook said. Custom Made ALUMINUM AWNINGS We manufacture original designs to fit your needs, installations • Residential • Commercial • institutional • Free Estimates IN STORE DISPLAY We Service What We Sell odd/ inhrnor> 943 N. Walnut 625-3477 “implicated in the organization of the hijacking,” RAI said he was suspected of providing false passports to the hijackers. AGI said the television said the .suspect was captured at a camping site outside Rome on the basis of information provided by two hijackers who reportedly are now cooperating with investigators. Earlier, an investigator said that the Achille I-iuro pirates killed Klinghoffer rn cold blood, and not in the heat of passion during a struggle as some have reported. Luigi Carli of Genoa, who is investigating the hijacking and slaying, said in a telephone interview that the four Palestinians had planned to kill a passenger on the cruise liner. Better Protection and pricing at its best Both are found in Southwestern Life s competitive term plans You net more protection for less money And if you think that sounds good call your local Southwestern agent for details Our rates will sound even better Henry T. Martin 352 Landa St. New Braunfels, Texas 78130 625-2343 Southwestern Life People with Answers It Doesn’t Make Coffee, but It Sure Makes Sense. If fact, owning a Code-A-Phone 2540 telephone answering machine is like having a full time secretary or butler without the expense. The 2540 never gets sick, never takes lunch, never asks for raises, always gets your messages word for word, and wouldn’t think of cutting off your caller before he’s finished speaking. And with its sleek, miorocassette design, it takes up less space than a small handbag. 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