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Motorola warns, cuts jobs
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September 6, 2001: 12:16 p.m. ET
Telecom equipment maker continuing to suffer from sluggish capital spending
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NEW YORK (CNNfn) - Motorola Inc. warned of flat sales and a wider-than-expected loss in the third quarter, as the telecommunications equipment maker continued to struggle with the effects of a sluggish global economy.
Schaumburg, Ill.-based Motorola said it expected to report a loss of between 5 and 8 cents a share in the third quarter, compared with the 5-cent-per-share loss analysts surveyed by earnings tracker First Call expected.
The mobile-phone maker also said it expected sales in the third quarter to be flat compared with second-quarter sales, instead of the 5-percent gain it had expected.
Motorola also said it plans to cut about 2,000 more jobs from its global wireless infrastructure unit, the Global Telecom Solutions Sector, in reaction to slow capital spending by wireless service providers. Including Thursday's cuts, Motorola has announced 32,000 job cuts so far this year.
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Motorola (MOT: down $2.50 to $13.90, Research, Estimates) shares fell in morning trading, well off their 52-week high of $35.75.
Motorola and other telecom equipment makers have suffered from a year-long slowdown in the U.S. and global economies driven primarily by a dramatic reduction in capital spending.
Wireless communications have had a particularly disappointing year; global shipments of mobile phones fell in the second quarter, the first such decline in the history of the wireless industry, according to a Gartner Dataquest survey released last week. 
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