Motorola posts quarterly loss

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Motorola posts quarterly loss

Motorola has blamed a slowdown in customer spending in the telecoms market for poor fourth quarter earnings.

The company reported a 25% drop in revenue for its fourth quarter to $7.3bn (£5.1bn), down from $10.1bn a year earlier.

For the quarter ending 31 December 2001, Motorola reported a net loss of $90m (£60m), excluding special items and exited businesses. This compares badly with a net profit of $362m during the same quarter a year earlier. With special items included, Motorola's fourth-quarter net loss was $1.2bn (£840m).

A consensus of analysts polled by Thomson Financial/First Call expected Motorola to report a loss, excluding special items, of $0.05 per share.

Motorola's personal communications segment, which includes its handset business, saw revenue drop to $3bn (£2.1bn), down 14% from the same period a year earlier. The company also saw its global telecoms division suffer a 33% drop in revenue, down to $1.4bn (£980m), thanks in part to falling demand worldwide for wireless infrastructure equipment.

The broadband communications division's revenues dropped to $580m (£406.3m). Motorola blamed a slowdown in capital investments and subscriber equipment roll-out by cable operators.

Motorola chief executive Christopher Galvin said that the company was glad to have put 2001 behind it. Galvin expects the company to continue posting losses in the first and second quarters of 2002, and predicted a return to profitability in the second half of the year.

The company did not announce any new redundancies on top of those already handed down over the past few months. Motorola will have axed 42,900 jobs and transferred 5,500 employees by the end of 2002.

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