Motorola, the first of the big three mobile phonemakers to report on its fourth quarter, yesterday posted earnings in line with lowered expectations, and a huge dip in orders in its semiconductor and handset units.
The world's second-largest handset maker said, excluding special items, it earned $335 million (€357 million), or 15 cents a share, compared with $564 million, or 25 cents a share, a year ago, in line with analysts' lowered forecasts, according to research firm First Call/Thomson Financial.
Motorola also said its total sales were $10.1 billion, slightly higher than its lowered estimate of $10 billion, and up 11 percent from $9.1 billion a year earlier. Motorola also said it planned to take further steps to cut costs.
"Despite the higher sales, increases in manufacturing costs and operating expenses caused operating profits to decline," president Robert Growney said in a statement.
"We have taken steps to reduce the cost structure in our manufacturing activities and to tightly control operating expenses. Further steps will be taken in 2001 to return the corporation to generating growth in its earnings," he said.
Motorola, which competes with Finland's Nokia and Ericsson of Sweden, had cut its fourth-quarter earnings outlook by more than 40 per cent last month, blaming a slowing semiconductor market and delays in cost-cutting in wireless phone production.
The stock closed yesterday up more than 2 per cent at $21 before the earnings were released. Motorola's earning report on came a day after Nokia, the world's largest mobile phone maker, said its 2000 mobile phone sales were weaker than expected although it gained market share.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)