Rockwell International Corp of Costa Mesa, California, said Wednesday that it is on target to complete the previously announced demerger of its troublesome Semiconductor Systems business by the end of December. Announcing its fourth quarter results, the company said business at its avionics, automation and communications divisions had all been strong, generating net income of $129m on sales up 5% at $1.8bn. However, the semiconductor division, which is now classified under discontinued operations (prior to its handing over to Rockwell stockholders) introduced losses of $255m in the quarter, dragging the group to a net loss of $126m. The company warned its investors in September that the semiconductor division would hit losses of this magnitude. Rockwell was forced to cut semiconductor staff by about 700 people, or 10% worldwide, and to close a wafer fabrication facility in Colorado. The company said it was cutting semiconductor systems operating costs by $200m annually in order to bring the size of the business in line with the realities of the semiconductor market.
