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NEW YORK (Reuters) – Chip maker Texas Instruments Inc (TXN.N) warned of slower-than-usual quarterly income growth as it scrambles to restart creation after Japan's large earthquake, and said it was blurred when the cater of the silicon and wafers it needs module convey to normal.

Shares of TI, which plans to acquire National Semiconductor Corp (NSM.N) for $6.5 1000000000 in a effort to modify its hold over a palmy similarity defect market, lapse 1.6 proportionality after it said earnings were also reduced by quake-related expenses.

Chief Financial Officer Kevin March told Reuters TI was projecting growth of most 5 proportionality for the current quarter, versus a typical 9 proportionality or more as TI contends with cater shortages as substantially as alteration to its possess factories and those of its customers in Japan.

"It's a knock-on gist you've feat on here," March said. "We're heedful that the actualised nakedness silicon and wafers we'd ingest in our factories, a aggregation of those are manufactured in the seism zone."

TI on weekday prognosticate second-quarter earnings of 52 cents to 60 cents per deal on income of $3.41 1000000000 to $3.69 billion. Analysts had due income of $3.52 billion.

The company's first-quarter earnings also uncomprehensible Wall Street expectations by a penny, as expenses chromatic after two of its Japanese factories were dilapidated in the country's maximal seism on record.

TI also said first-quarter income from wireless baseband chips -- the important defect in cellphones -- was cut by anaemic income at one customer. TI's biggest baseband is Nokia (NOK1V.HE), which is due to place quarterly earnings Apr 21. Nokia has had a thickened time competing in advanced phones.

JAPAN UNCERTAINTY

TI had already signaled on March 14 it would grappling a powerful factory repair bill, and warned its first- and second-quarter income would be hurt by creation interruptions from alteration and power-supply disruptions at two key factories in Japan.

The company said one of the factories module "soon" uphold flooded production, while the another module not get backwards up to its connatural speed until mid-July.

CFO March cautioned to analysts on a word call that it would be several months after July before TI sees flooded creation income from the second factory because of manufacturing cycle times.

The company prognosticate a brawny second half of the year as it said that inexplicit orders were ease strong, but it did not provide limited guidance. Gleacher & Co shrink Doug Freedman said it was difficult to tell when the business would convey to connatural after the Nihon disaster.

"We're in unchartered territory," he said.

Other analysts complained most TI's costs, even right of the factory problems.

"They ease were anaemic even without Japan. Sounds same their costs are rising a taste faster than their revenue," said Charter Equity Research shrink Ed Snyder.

The maker of chips utilised in products ranging from consumer electronics to industrial equipment said its first-quarter acquire chromatic to $666 million, or 55 cents per share, from $658 million, or 52 cents per share, in the year-ago quarter.

Excluding 2 cents per deal in costs associated with the quake, its earnings of 57 cents per deal were meet a centime beneath Wall Street expectations, according to Thomson Reuters I/B/E/S.

Revenue chromatic 6 proportionality to $3.39 1000000000 from $3.21 billion, in distinction with the cipher shrink belief for $3.39 billion.

Shares in TI slid nearly 3 proportionality before paring loses to change at $34.25, downbound from a near of $34.79 on the New York Stock Exchange.

(Reporting by Sinead Carew; Editing by Richard Chang)

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