TI Cuts Forecast

Texas Instruments Inc., whose chips power two-thirds of the world’s mobile telephones, scaled back its forecasts for cellular phone sales and said third-quarter calculator sales will be less than expected. The company, which had forecast sales of 435 million phones this year, now expects customers such as Nokia Corp., Ericsson and Motorola Inc. to ship 400 million to 435 million phones, Chairman and Chief Executive Thomas Engibous said. “Our customers forecast more growth than what has materialized,” he said. Dallas-based Texas Instruments still expects sales of digital-signal processors, the key chips used in cell phones, to “equal or exceed” last quarter’s sales for wireless devices. TI shares rose $4.50 to close at $63.69 on the NYSE.