Motorola expects fourth-straight loss in Q4, plans to cut 7,000 jobs
Semiconductor Business News
(10/10/01 11:09 a.m. EST)
SCHAUMBURG, Ill. -- During a conference call with analysts today, Motorola Inc. warned investors that it expects to post a fourth-straight quarterly loss in Q4 this year with total sales being flat to 3% higher than $7.4 billion in the just-ended Q3 period.
The new guidance shows Motorola will not meet Wall Street's expectations of a $0.01-per-share profit in the fourth quarter, based on a survey by First Call/Thomson Financial. On Tuesday, Motorola reported a net loss of $1.4 billion, including $2 billion in charges, on sales of $7.4 billion, compared to revenues of $7.5 billion in Q2. Motorola's wireless handset business nudged into profitability in Q3 but its chip business had a $355 million operating loss in the quarter (see Oct. 9 story).
During the conference call, Motorola executives said the company was planning to cut an additional 7,000 jobs this year. When those layoffs are made, Motorola will have eliminated 39,000 jobs in 2001, or just over one-quarter of its worldwide workforce.
Motorola said it expects to report a loss of $0.04-to-$0.05 per share on a pro-forma basis. That compares to a pro-forma loss of $0.07 per share, or $153 million, excluding the $2 billion charge in Q3.
The Schaumburg-based electronics giant said the improvement in losses vs. the third quarter will come largely as a result of cost-cutting actions and its new guidance assumes "no further deterioration in global political or economic conditions." |
