TI plans 2-for-1 stock split

Texas Instruments Inc. (NYSE: TXN) said Thursday said its board of directors approved a 2-for-1 stock split, payable on May 22 to stockholders of record on May 1.

The split, which is up for shareholder approval at the company's annual meeting Thursday, is TI's second split in the last year. TI last stock split was August 1999.

The split is the second dose of good news this week. TI reported solid first quarter earnings on Monday.

TI raked in $470 million, or 55 cents a share, on sales of $2.65 billion.

First Call consensus expected the world's largest manufacturer of chips used in mobile phones to earn 53 cents a share in the quarter.

The $2.65 billion in sales marked a 27 percent improvement from the year-ago quarter when it earned $278 million, or 34 cents a share, on sales of $2.08 billion.

TI credited the upside surprise to surging demand for chips used in a variety of wireless communication devices.

Company officials also reiterated their forecast of reaching a pro forma operating margin of 25 percent by year's end.

"For the year 2000, TI expects robust growth to continue in its semiconductor business, driven by strength in communications end-equipment markets, including wireless and broadband, as well as continued strength in the mass market," TI said in its statement.