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To: coachbobknight who wrote (4106)	8/1/2000 10:21:34 PM
From: Keith A Walker	Read Replies (1) \| Respond to of 6531

Motorola is sanguine about growth outlook: Motorola Expects to Meet 2001 Estimates By Susan Kelly ROSEMONT, Ill. (Reuters) - Motorola Inc., the world's No. 2 wireless phone maker, said Tuesday it expected to meet analysts' forecasts for its 2001 earnings, building on the strong sales seen in the fiscal first half. Sounding an upbeat note at an analysts meeting here, the company, which makes telecommunications equipment and computer chips, also said it was working toward a goal of delivering double-digit annual sales growth across all of its sectors. ``As we look forward into 2001, we see enormously exciting market opportunity,'' said Robert Growney, Motorola's president and chief operating officer. ``We believe present consensus estimates for 2001 of earnings per share of $1.43 and sales of $47 billion are achievable,'' he said. Motorola (MOT.N) shares closed up 1-5/8 at 34-11/16 on the New York Stock Exchange, off a March peak of 61-9/16. The cheery forecast from Motorola contrasted with the outlook given by rival Nokia (NOK1V.HE), whose shares plunged 25 percent at one point after the company warned last week that third quarter earnings would lag second quarter results. Nokia also postponed the introduction of its newest model phones until late in the third quarter. Motorola, based in Schaumburg, Illinois, also repeated its forecast for full-year 2000, for which it sees earnings per share at $1.05 and revenues of $39.5 billion. Motorola Chairman and Chief Executive Christopher Galvin said the company is now in a growth phase after a two-year restructuring effort and remains committed to improving operating performance going forward. ``There is not one segment we're in that we don't believe we'll grow at least, as an industry at 15 percent a year, and most of them are growing 20 to 25 percent a year, some significantly more,'' Galvin said. Overall revenues from ongoing operations are expected to rise 23 percent in full-year 2000 after rising 20 percent in the first quarter and 22 percent in the second quarter, compared with growth of just 8 percent in 1999 and a 1 percent decline in sales in 1998. In the personal communications sector, which includes wireless handsets, operating margins are expected to reach 10 percent by the fourth quarter 2000, boosted by roll-outs of new low-tier telephones that are expected to be completed by the fourth quarter. ``We are very confident we will be growing (market) share in both units and dollars in the second half,'' said Mike Zafirovski, president of the unit, the company's largest. Motorola projected industrywide cellular subscribers would top 730 million by the end of 2000 and hit the one billion mark in 2001. The company's semiconductor products sector is on target to achieve double-digit profit margin gains in the fourth quarter and expects sequential improvements in each quarter of 2001, Motorola executives said. Revenues for broadband communications, which includes television set-top boxes, are seen growing by more than 25 percent to top $3 billion in fiscal 2000, with operating margins expected to exceed 15 percent. The network solutions sector expects revenue growth in the 20-25 percent range in 2000 after a flat year in 1999. In the commercial, government and industrial solutions segment, sales growth is expected to be 15-20 percent in 2000 and operating margins are seen as comparable to last year at 10-11 percent. Motorola aims to become one of the world's 10 biggest companies based on market capitalization by the end of the decade and believes its shares are much undervalued, company officials said. ``The perception for Motorola right now is significantly lagging reality,'' Galvin said. ``This is not the company you came to watch during most of the 1990s.'' Reut18:57 08-01-00