|
Motorola rings up profits
|
 |
July 13, 1999: 6:13 p.m. ET
Wireless phone and chip maker sees strong sales, bigger demand in Asia
|
NEW YORK (CNNfn) - Motorola Inc. Tuesday posted better-than-expected second quarter operating profit, helped by strong sales of its digital wireless telephones and increased demand for its products in Asia.
Excluding one-time charges, Motorola earned $273 million, or 44 cents per share in the period ended June 30. That's up sharply from $6 million, or 1 cent per share, earned in the same period last year.
The figure was also ahead of expectations of analysts surveyed by First Call Corp., who forecast the semiconductor and wireless telephone maker earning 41 cents per share.
Sales rose to $7.5 billion, up 7 percent from $7.0 billion a year earlier.
"The improved results stem from good growth in semiconductors and very significant growth in digital wireless telephones, as well as a recovery in Asian markets and the benefits of the company's profit improvement programs," said Robert L. Growney, Motorola's president and chief operating officer.
The results exclude pre-tax charges of $94 million, or 11 cents per share. Including this charges, second-quarter earnings were $206 million, or 33 cents per share, compared with a loss of $1.3 billion, or $2.22 per share in the second quarter of 1998.
Looking ahead, the Schaumburg, Ill.-based company warned a possible charge in the third quarter due to Iridium, the global satellite telephone system Motorola helped bankroll.
"The impact on Motorola of an Iridium LLC restructuring may become clearer in the third quarter, and may necessitate an additional special charge at that time," the company said.
Shares of Motorola (MOT) closed down 2-1/4 to 96-3/4 Tuesday in advance of the earnings release. 
|
|
|
|
|
|
Motorola Inc.
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
