Motorola Pares Down Losses4/17/2002 6:25 AM Eastern
Times may still be tough for Motorola Inc., but the company sees hope for
profitability in the second half of the year.
The Schaumburg, Ill.-based cable- and telecommunications-equipment provider
posted $6 billion in sales for the first quarter of 2002, a decrease of 20
percent from the $7.5 billion posted for the same quarter in 2001.
Net losses totaled $174 million, or 8 cents per share, easily beating
analysts' predictions of a 12-cent loss. It was also an improvement compared
with the $211 million loss posted for the first quarter of 2001.
Motorola Broadband Communications Sector continued to struggle in the
quarter, with sales slumping 36 percent to $525 million compared with a year
ago. Orders also dropped off 41 percent, totaling $537 million, as cable
operators continued to pare down capital investments and new
Nevertheless, the company still sees light in the second half of the year,
according to chairman and CEO Christopher Galvin.
While markets are still turbulent, 'We continue to believe Motorola will
return to profitability during the second half of 2002 and be profitable for the
full year, excluding special items and barring any unforeseen political or
economic disruptions,' he said in a release.
'We also believe the U.S. and global economies should firm in the second half
of 2002 and further improve in 2003 given stable world affairs,' Galvin