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Motorola losses widen as Q4 phone sales tumble 51% February 4, 2009

Posted by aikservices in Financial, Motorola, USA.
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Motorola reported a net loss of USD 3.6 billion for the fourth quarter as a continued slump in its mobile phone sales caused heavy writedowns and restructuring charges at the company. The net loss of USD 1.57 per share includes USD 1.56 in charges, most of which are non-cash writedowns of goodwill and investments. In the year-earlier period the company had a net profit of USD 100 million or USD 0.05 per share, Quarterly revenues fell to USD 7.14 billion from USD 9.65 billion, and the operating loss widened to USD 1.68 billion from USD 19 million. The mobile phone division saw quarterly sales fall 51 percent year-on-year to USD 2.35 billion, while the operating loss widened to USD 595 million from USD 388 million. Motorola shipped 19.2 million handsets in the quarter, down from 40.9 million in the fourth quarter of 2007. The Home and Networks Mobility division also saw a decline in sales, down 5 percent to USD 2.6 billion, but improved operating profit to USD 257 million from USD 192 million in the year-earlier period. Sales at Enterprise Mobility Solutions rose 4 percent year-on-year to USD 2.2 billion, while operating profit rose to USD 466 million from USD 451 million. Motorola reiterated a target for USD 1.5 billion in cost reductions this year. For the first quarter the company forecast a net loss of USD 0.10-0.12 per share, excluding any one-time charges. Motorola also announced a suspension in its quarterly dividend payments. The company reported positive cash flow in Q4 of USD 201 million, and finished the year with USD 7.4 billion in cash. Finally, the company said its CFO Paul Liska is leaving the company. Edward Fitzpatrick, senior vice president and corporate controller, has been named acting CFO while the company searches for a replacement.

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