Motorola delays plan to split in two

Motorola is to delay splitting itself into two companies because of the global economic turmoil. Earlier...

Motorola is to delay splitting itself into two companies because of the global economic turmoil.

Earlier this year, Motorola announced that it is to split into two companies, with one focusing on its struggling mobile-phone business and the other on its more profitable mobile-enterprise and broadband operations.

Sanjay Jha, Motorola's CEO of Mobile Devices, said, "While our strategic intent to separate the company remains intact, we are no longer targeting the third quarter of 2009, primarily due to the macro-economic environment, stresses in the financial markets and the changes underway in Mobile Devices.

"We have made progress on various elements of the separation plan and will continue to prepare for a potential transaction at the appropriate timeframe that serves the best interests of the company and its shareholders."

He made the statement as Motorola announced its latest quarterly results, showing a loss in the July-September period of $397m, contrasting with $60mprofit in the same quarter last year.

It spent $21m on separation costs in the July-September period, bringing the total spent to $41 million.

Greg Brown,CEO of BroadbandMobility Solutions, at the firm, said, "Our balance sheet and liquidity position give us agility and flexibility in today's weakened global economy and turbulent financial markets."

A report in the Wall Street Journal earlier in the week claimed that Motorola is planning a further global round of job cuts - another 3,000 on top of 10,000 lay-offs since 2007. The report said that an announcement could be made along with the quarterly results, but Motorola has so far made no comment on the report.

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