Abstracts » Business, general

Motorola's profit exceeds expectations despite a 15% decline in first quarter

Article Abstract:

Motorola's 1st qtr 1997 results were much better than analysts' expectations, despite a 15% decline in income, a 5.7% decline in sales, and 4.9% decline in net margins. Earnings were 53 cents per share, higher than analysts' predictions of 44 cents per share. Declining semiconductor sales and increased competition in other markets, such as cellular phones, resulted in general declines from 1st qtr 1996. However, Motorola's semiconductor sales slump appears to be bottoming out, and sales of cellular equipment increased slightly. While Motorola's stock is trading at $61.125 per share, analysts expect it to reach $80 per share, near Motorola's all-time high of $81.25 in Sept. 1995. New CEO Christopher Galvin has been very active with both restructuring efforts and new technological initiatives. Galvin has helped Motorola move into new areas, such as 'smart' credit cards.

Radio & TV communications equipment, Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing, Cellular Mobile Tel Equip, Computer industry, Wireless telephones, Company Sales/Revenue, Company Earnings/Profit

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Motorola posts operating net for 2nd period

Article Abstract:

Motorola announced an operating profit of $6 million, or 1 cent a share, for the 2nd qtr 1998. The report surprised analysts, who had predicted a 4-cent loss in a First Call consensus, but Motorola CEO Christopher Galvin said the Asian economic turmoil will negatively impact company earnings at least throughout 1998. Motorola's net loss amounted to $1.33 billion, or $2.22 a share, following a $1.91 billion restructuring charge. By comparison, the electronics giant tallied a 2nd qtr 1997 operating net of $392 million, or 64 cents a share, and a net income of $268 million, or 44 cents a share. Sales declined to $7.02 billion, which represents a 6.6 decline from $7.52 billion in the 2nd qtr 1997. Motorola also said cellular telephone and semiconductors orders declined by 11% and 25% respectively from the 2nd qtr 1997.

Semiconductor industry, Company sales/revenue, Company earnings/profit

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