Warning on profit made by Motorola

Motorola added to the worries of high-tech investors, springing a profit warning just 24 hours after a similar move by Intel

Motorola added to the worries of high-tech investors, springing a profit warning just 24 hours after a similar move by Intel. The company, which employs some 1,600 people in Ireland, said last night it would try to cut costs mainly in its semi-conductor operations. There were no obvious implications for the company's Irish facilities, which produce wireless communications equipment and software, a spokesman said.

In a statement, Motorola blamed the shortfall on weak south-east Asian currencies; the firm said its first-quarter net income would be "well below" Wall Street estimates, with revenues flat compared to one year ago.

The caution came just a day after Intel, the leading computer microchip manufacturer, warned that its sales and profits would be down in the current financial quarter. Intel, which employs more than 3,500 people in Leixlip - and more than 4,000 when contract staff are counted - said it remained committed to opening a new wafer fabrication plant in April or May, which would boost its overall investment in Ireland to $2.5 billion (£1.8 billion).

The firm is somewhat behind schedule in its jobs programme. In May 1994, Motorola said it would bring its workforce at Swords to 1,500 by the end of 1996; there are around 1,300 employees in the plant now. The company employs a further 300 software specialists in Cork.

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A spokesman for Motorola stressed that its problems were mainly related to the microprocessor market: "We do intend to be more aggressive in cutting costs, although primarily in our semi-conductor businesses."

Motorola said that its cellular telephone infrastructure systems operations had been affected by a significant slowdown in some Asian countries, although cellular phones were selling well, except in the US, where demand had weakened.