Motorola continues turnaround with solid Q1 profit


Motorola continues turnaround with solid Q1 profit

Telecommunications and semiconductor company Motorola has stayed profitable in its first quarter of 2003 despite posting revenue slightly lower than in the same quarter last year.

For the quarter, Motorola reported revenue of $6.04bn (£3.83bn), 2.3% down on the $6.18bn (£3.92bn) achieved in the first quarter of 2002. Net profit was $21m (£13m) compared to a loss of $184m (£117m) in the first quarter of 2002.

Motorola also reported $148m (£94m) in after-tax income from special items, primarily related to the sale of some of its Nextel Communications shares, giving it a profit of $169m (£107m) including the special items.

Motorola executives said business conditions remained very uncertain, but predicted that the company would stay profitable through its 2003 fiscal year. The company projected that revenue for the upcoming second quarter will be between $6.4bn (£4.1bn) and $6.6bn (£4.2bn), well down on last year's figure.

Despite chairman and chief executive officer Christopher Galvin saying the business market is struggling with "a geopolitical environment of increasing uncertainty", Motorola's recent financial results are much better than in previous years, which saw the company post losses of $2.5bn (£1.6bn) in 2002 and $3.9bn (£2.5bn) in 2001.

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