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Motorola Expects Lower Fourth Quarter Earnings than Anticipated
Thursday December 07 by Staff WriterThe third largest employer in the Valley, Motorola, Inc. (NYSE: MOT) announced that that it does not expect to reach its previous sales and earnings goals in the fourth quarter of 2000. Slowing market conditions and higher than expected production costs are being blamed.
Fourth quarter 2000 sales are expected to be $10 billion, with earnings per share of 15 cents. The previous expectation was sales of $10.5 billion and per share earnings of 27 cents.
Motorola implemented cost reduction actions in the third quarter of 2000, which will extend into the first quarter of 2001. These include consolidation of manufacturing operations and out-sourcing of manufacturing. These actions will result in charges against earnings.
Among other positive indicators, robust growth is expected in the global wireless phone market in 2001. Robert L. Growney, president and chief operating officer, stated, "Even though it is necessary to reduce our expectations for sales and earnings in the short term, we continue to believe that tremendous long-term opportunity exists at three levels of the value chain - embedded chips, embedded electronic systems and end-to-end integrated communication solutions -- for wireless, broadband and Internet markets. This is the core of our strategic focus."
An audio webcast of the analyst conference call is available at www.motorola.com/investor. A recording of the call is available at 1-402-220-0071.
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