Motorola
Written on January 23, 2008
Cell phone maker Motorola Inc. on Wednesday said net profits fell sharply in the fourth quarter, and it warned that the recovery in its struggling handset unit will take longer than expected.
Motorola reported a net profit of $100 million, or 4 cents per share, compared to a year-earlier profit of $623 million, or 25 cents per share. Sales fell to $9.65 billion from $11.79 billion a year earlier.
On a continuing operations basis, Motorola reported a profit of 5 cents per share. That figure includes charges of 9 cents per share for asset writedowns, layoffs and a legal settlement.
Analysts polled by Thomson Financial, on average, expected earnings of 13 cents on revenue of $9.6 billion for the quarter.
"The recovery in Mobile Devices will take longer than expected and there is a lot more work to be done," Motorola Chief Executive Greg Brown said in a statement quick payday loan. "Our primary focus is on improving profitability and enhancing our product portfolio in this business."
For the first quarter, the company forecast a loss from continuing operations of 5 to 7 cents per share. Analysts expect earnings per share of 10 cents for the first quarter.