Motorola Earnings:
biz.yahoo.com
Motorola, Inc. (NYSE:MOT - news) today reported sales of $7.4 billion in the third quarter of 2001. This is a decrease of 22 percent from $9.5 billion a year earlier. Including pro forma adjustments, the company incurred a loss of $153 million, or (7) cents per share, compared with earnings of $643 million, or 28 cents per share a year ago.
Robert L. Growney, president and chief operating officer, said, ``We are pleased to report that our wireless handset business returned to profitability and again reported higher market share compared to last year. In total, Motorola made important progress in sequentially reducing its pro forma operating loss, although we won't be satisfied until we return to solid and growing profitability throughout our portfolio of businesses. We also reduced Motorola's net debt by an additional $2.4 billion and generated positive operating cash flow of approximately $200 million during the third quarter, thus further strengthening our balance sheet. We will continue to be focused on efforts to control operating expenses and to maintain the health of our balance sheet during this period of uncertainty.''
In the third quarter of 2001, Motorola reported pro forma adjustments resulting in a net charge of $2.0 billion pre-tax, or (57) cents per share after-tax. Charges were incurred primarily for investment impairments, cost-reduction activities and approximately $1.3 billion in additional reserves that relate to a defaulted $2 billion financing to Telsim, a cellular operator in Turkey. These charges were partially offset by a gain from the sale of a business.
In the third quarter of 2000, Motorola reported pro forma adjustments resulting in a net charge of $144 million pretax, or 5 cents per share after tax. Excluding pro forma adjustments, the third-quarter 2001 loss was $1.4 billion, or (64) cents per share, compared with earnings of $531 million, or 23 cents per share, in the third quarter of 2000. |
