News Burst: Rockwell spins off Semiconductor business

Rockwell has confirmed plans to spin off its Semiconductor Systems unit to shareholders.

The division has projected sales of $1.3bn (£0.8bn) for fiscal 1998 and employs about 7,000 people. It will post an operating loss for the third quarter and overall year blaming a `weak' modem market among other reasons.

Rockwell will also take a $625m (£381m) restructuring charge and cut 3,800 jobs to "improve competitiveness". The restructuring is expected to be complete by the end of 1999.