Motorola's chip unit reports 8% jump in Q4 sales
Semiconductor Business News
(01/21/03 05:54 p.m. EST)
SCHAUMBURG, Ill.--Motorola Inc. today reported sales of $7.5 billion in the fourth quarter of 2002, up 3% from $7.3 billion in the like period a year ago and 14.7% from $6.4 billion in the previous quarter.
The company reported a profit of $174 million, or $.08 per share, compared to loss in the year-ago quarter of $1.2 billion, or minus $0.55 per share. In the previous quarter, it reported earning of $111 million.
Sales within Motorola's Semiconductor Products Segment (SPS) sales were $1.3 billion for the quarter, up 15% over the like period a year ago and 8% from $1.2 billion in the previous quarter. Orders were $1.2 billion, up 18% from last year.
The segment reported operating earnings of $18 million, presented on a GAAP basis, compared with an operating loss of $798 million in the year-ago quarter. Excluding special items, the segment reported operating earnings of $9 million, compared with an operating loss of $284 million in the year-ago quarter.
In comparison, Motorola's SPS unit achieved operating earnings of $13 million in the third quarter of 2002. The company attributed the results to its fast-growing wireless chip business.
Christoher B. Galvin, chairman and CEO of Motorola, was bullish about the company's results. “Motorola returned to profitability on a GAAP basis in both the third and fourth quarters of this year,” he said in a statement. “On a GAAP basis, five of our six major segments had positive operating earnings in the fourth quarter and operating earnings for all six were above prior-year results,” he said.
Going forward, the company's forecast was less optimistic. “For the near term, we remain optimistic that modest sales growth can be achieved in 2003. The world economies are today showing some underlying signs of a rebound, which if not significantly disrupted by world events, could have a favorable impact on our markets as customers move towards renewing their capital spending,” he said.
"Having provided no guidance for the first quarter of the year until now, we expect sales of between $6.0 and $6.2 billion and earnings per share in the range of break-even to $.02. For the full year, our guidance continues to be approximately $27.5 billion in sales and earnings per share of $.40,” he said.
Motorola reported full-year 2002 sales of $26.7 billion, compared to sales of $29.9 billion in 2001. On a GAAP basis, the 2002 full-year net loss was $2.5 billion, or ($1.09) per share, compared to a net loss of $3.9 billion, or ($1.78) per share, for 2001. |
