<Motorola said it had introduced 20 new wireless phones with a focus on Internet-ready
products - an area it was behind in until restructuring itself.>
Motorola Earnings More Than Double
By DAVE CARPENTER, AP Business Writer
CHICAGO (AP) - Motorola Inc. (NYSE:MOT - news) reported its profits more than
doubled in the first quarter, slightly exceeding Wall Street's estimate, on booming sales of its
mobile phones and semiconductor products.
The strong earnings showing provided emphatic new evidence of the turnaround at the
Schaumburg, Ill.-based electronics manufacturer, which has remade itself after losing its
position as the world's top maker of cellular phones.
Earnings from continuing operations were $449 million, or 59 cents a share, up from $184
million, or 26 cents a share, in the first quarter of 1999.
A consensus of analysts surveyed by First Call/Thomson
Associates had forecast earnings of 58 cents a share.
The report was released after markets closed. Anticipating
big earnings, investors had driven up Motorola's stock by 6
percent last Friday before taking profits Monday, when the
company's shares fell $2.75 to close at $151 on the New York Stock Exchange.
Despite being nosed out by Finland's Nokia as the top cell phone maker, Motorola has
proven well positioned to take advantage of the surge in worldwide mobile phone use. The
company said its phone sales for the quarter increased significantly in nearly every region,
but orders declined in Europe.
Cellular phone shipments even edged up from the fourth quarter, when sales were
particularly strong due to Christmas buying. Analysts had expected a decline.
Motorola said it had introduced 20 new wireless phones with a focus on Internet-ready
products - an area it was behind in until restructuring itself.
Sales of semiconductor products jumped 24 percent to $1.9 billion and orders rose 21
percent to $2 billion.
``People were looking for a strong performance from Motorola ... and they got that,' said
Pete Peterson, an analyst for Prudential Volpe Technology. ``This quarter is marginally
better than expected.' |
