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Technology Stocks : IRID - Iridium World Communications IPO Announced! -- Ignore unavailable to you. Want to Upgrade?

To: Marty Rubin who wrote (2250)	8/3/1999 11:03:00 PM
From: Marty Rubin	Respond to of 2693

Motorola CEO Galvin Says Company Still Has Much Work to Do Rosemont, Illinois, Aug. 3 (Bloomberg) -- Motorola Inc. Chairman and Chief Executive Chris Galvin said there's ''an enormous amount'' of work to do to complete the turnaround at the world's No. 2 cellular-phone maker. At its annual analyst meeting near Chicago, the company said it intends to sell its products online, develop products for wireless access to the Internet and put semiconductors in everyday items like cars and refrigerators. A year ago, the Schaumburg, Illinois, company unveiled a broad restructuring of its businesses to boost profit. Since then, it's slashed about 24,000 jobs, shed its less profitable chip lines and contracted out some production to concentrate on new product development. Now, Galvin said Motorola can focus on what's ahead. ''We said we would reorganize the entire organization, and we have,'' said Galvin, the grandson of Motorola founder Paul Galvin, at the meeting in Rosemont, Illinois. Motorola division presidents and managers also outlined strategies to make their units more profitable and more customer- oriented. Rick Darnaby, senior vice president and general manager of the consumer solutions group, said the company plans to increase its brand recognition among consumers with a new ad campaign that emphasizes Motorola's ''cool products.'' This month, the company will open an online store in the U.S., where products like pagers and cell phones can be purchased directly, Darnaby said. Next year, the online store will be expanded globally. ''I think the general feeling about what Motorola had to say was positive and upbeat,'' said Mark McKechnie, a Banc of America Securities analyst, who rates Motorola ''strong buy.'' Iridium The one cloud hanging over the meeting was the fate of Iridium LLC, the cash-strapped global satellite-telephone company that's 18 percent owned by Motorola. Iridium, which has about 20,000 subscribers for its costly phone service, and Motorola are trying to stave off a court- imposed bankruptcy reorganization through a negotiated settlement. Motorola has about $2.2 billion in financial guarantees in Iridium and is considering increasing its stake to 40 percent by guaranteeing $400 million more. Today, Iridium said Chase Manhattan Corp. claims the company has defaulted on an $800 million loan and is demanding that Motorola -- Iridium's biggest investor -- put up $300 million to guarantee payment. Iridium and Motorola denied Chase's claims. At today's analyst meeting, Motorola President and Chief Operating Officer Robert Growney said the company is supporting Iridium ''at a very significant level,'' and that negotiations are continuing to restructure the company's financing. Motorola fell 2 1/8 to 90 3/4. The stock has risen 49 percent so far this year. Aug/03/1999 18:29 (C) Copyright 1999 Bloomberg L.P.