Motorola third-quarter loss hits £1bn

Motorola posted a net loss of $1.4bn (£1bn) for the third quarter of 2001 on sales of $7.4bn, 22% lower than the $9.5bn recorded...

Motorola posted a net loss of $1.4bn (£1bn) for the third quarter of 2001 on sales of $7.4bn, 22% lower than the $9.5bn recorded in the same quarter last year when the company posted a $531m net profit.

The loss this quarter includes charges incurred by a $1.3bn defaulted loan to the Turkish mobile network operator Telsim Mobil Telekomunikasyon Hizmetleri, as well as investment write-downs and cost-reduction activities.

For the first three quarters, the company made a net loss of $2.7bn (£1.2bn), compared to a net profit of $1.18bn in the same period last year. Sales totalled $22.68bn in the first nine months of the year, 17.5% lower than the $27.5bn for the first nine months of the 2000 financial year, according to a company statement.

Handset sales were down 16% from the year-earlier period; telecommunication infrastructure sales were down 10%; broadband sales were down 31% and semiconductor sales were down 48%.

Motorola has announced 32,000 job cuts since December 2000, either from outsourcing production to electronics manufacturers such as Celestica, or through staff reductions.

Read more on IT outsourcing

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close