Texas Instruments 2Q16 Earnings Call Notes

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Texas Instruments, Incorporated. (TXN) Q2 2016 Results

British economy is only a small part of global GDP

“I would say that we really – it’s pretty much impossible for us to be able to make a comment directly on that. Indications I’ve seen, the British economy is probably about 4% of the global GDP, so even if there’s a wobble inside that economy, it’s going to be really hard for us to be able to detect it.”

David Pahl – Vice President & Head of Investor Relations

Demand continued to be strong in auto and grew in industrial and communications

“Revenue and earnings per share for the quarter were solidly in the upper half of our expected range. Compared with the year ago, demand for our products continued to be strong in the automotive market and grew in industrial and communications equipment markets. Despite sequential growth, demand in the personal electronics market was down from a year ago.”

Auto segment is benefiting from content gains

“Yes. Clearly, what’s driving the market today, we believe, is content gains. And if you have visited an auto showroom any time in the last year, that’s pretty obvious to see with the new models that are coming out. Our belief is that the automotive sales will fluctuate much like they have in the past and into the future. But certainly, overall, the content gain is what’s growing things.”

Macro environment is ok not really strong not really weak

“Well, I would just say, Tore, overall I think that we’re operating in a similar macro environment to what we’ve seen in actually recent years, and that’s just an environment that I’d say that it’s okay, if I used one word to describe it. It’s not really strong. It’s not really weak, and we’re operating in that type of environment.”