Texas Instruments disappoints as Japan weighs on production

TEXAS Instruments yesterday warned of slower-than-typical quarterly sales growth as it scrambles to restart production after Japan’s massive earthquake, and said it was unclear when the supply of the silicon and wafers it needs will return to normal.

Shares of the chip maker, which plans to buy National Semiconductor Corp for $6.5bn (£4bn) in a bid to expand its hold over a booming analog chip market, slid 2.5 per cent after Texas’ earnings were also hurt by quake-related expenses.

Texas is projecting growth of about five per cent for the current quarter, versus a typical nine per cent or more as the company contends with supply shortages as well as damage to its own factories.

Texas on Monday forecast second-quarter earnings of 52 cents to 60 cents per share on revenue of $3.41bn to $3.69bn. Analysts had expected revenue of $3.52bn.

Its first-quarter earnings also missed Wall Street expectations by a penny. Profit in the first-quarter rose to $666m, or 55 cents per share, from $658m, or 52 cents per share, in the year-ago quarter. Revenue rose six per cent to $3.39bn from $3.21bn, in line with the average analyst expectation for $3.39bn.