Motorola Q3 loss tops US$1 billion

Motorola posted a net loss of US$1.4 billion for the third quarter of 2001 on sales of $7.4 billion, 22 percent lower than the $9.5 billion recorded in the same quarter last year, when the company posted a $531 million net profit.

The loss this quarter would have been $153 million if pro forma adjustments were included, the company said in a statement. These relate to charges incurred by a $1.3 billion defaulted loan to Turkish mobile network operator Telsim Mobil Telekomunikasyon Hizmetleri AS, investment write-downs and cost-reduction activities such as job cuts.

For the first three quarters, the company made a net loss of $2.7 billion, compared to a net profit of $1.18 billion in the same period last year. Sales totalled $22.68 billion in the first nine months of the year, 17.5 percent lower than the $27.5 billion for the first nine months of fiscal 2000, according to the statement.

Handset sales were down 16 percent from the year-earlier period, telecommunication infrastructure sales down 10 percent, broadband sales down 31 percent and semiconductor sales down 48 percent, the company said in the statement.

Motorola has announced 32,000 job cuts since December 2000, either from outsourcing production to electronics manufacturers like Celestica Inc. or outright staff reductions.

The stock (MOT) fell 3.85 percent on the New York Stock Exchange on Tuesday, to finish at $16.72. The stock has recovered from a low of $10.50 in early April.

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