SCHAUMBURG, Ill., Apr 6, 2001 (BUSINESS WIRE) -- Motorola, Inc. (NYSE: MOT),
today strongly denied a published report that it might soon face a serious
liquidity problem due to its amount of outstanding commercial paper of $6.4
billion as of December 31, 2000.
At the end of the first-quarter this year, Motorola said it had cash and cash
equivalents of $4.4 billion and $4.1 billion of outstanding commercial paper.
Through April 6, 2001, Motorola had more than $4.5 billion in cash and cash
equivalents and outstanding commercial paper had been reduced to $3.1 billion.
"Motorola today is financially sound. Any suggestion or erroneous report that
Motorola faces a serious liquidity problem is simply not correct and is not
supported by fact," said Bob Growney, Motorola president and chief operating
officer. "Our entire management team is highly focused on maintaining a strong
balance sheet and improving cash flow. We also have actions well underway to
improve our management of working capital."
In its annual proxy statement, filed on March 30, 2001, Motorola stated that it
had implemented significant cost reduction and product simplification plans in
2000. These activities are continuing in 2001.
Motorola also stated that the company "expects accounts receivable to decline
during 2001 as a result of its ongoing efforts to improve accounts receivable
management." The company also "expects inventory levels to decrease during the
year as it continues to improve its supply chain management" and has
significantly lowered its anticipated capital expenditures.
Motorola also said it expects a very significant increase in proceeds from the
sale of investments and businesses during 2001 compared to 2000.
For example, Motorola has announced the receipt of more than $1 billion for the
sale of several of its cellular operating companies worldwide and expects to
receive about $1.8 billion for the sale of its cellular operating companies in
northern Mexico by the third-quarter of this year. Motorola also has available
liquidity under its existing credit facilities. |
