Motorola has said it will take the company longer than expected to get its mobile phone business back on track. While the group's fourth-quarter results were in line with its previous outlook for a small profit before charges, the handset business showed a continued sharp drop in sales, down 38 percent to USD 4.8 billion, and an operating loss of USD 388 million. Unit shipments reached 40.9 million in the quarter.
Overall, the group posted a small net profit of USD 100 million for the quarter, down from USD 623 million a year earlier. EPS from continuing operations was USD 0.05, including USD 0.09 in one-time charges, versus an outlook for EPS of USD 0.12-0.14 before charges. Revenues fell to USD 9.65 billion from USD 11.97 billion. The operating result was a loss of USD 19 million versus a profit of USD 753 million a year earlier.
Motorola expects to slip back to a loss in the first quarter, forecasting a loss from continuing operations of USD 0.05-0.07, excluding any further restructuring charges. The company said it will continue to "aggressively" reduce costs, focusing on improving profitability and enhancing its handset portfolio. In a conference call, the company said it expects the mobile handset business to show a continue deterioration in results and market share in Q1, beyond the normal seasonal decline.
The Home and Networks Mobility segment reported quarterly sales of USD 2.7 billion, up 11 percent from a year earlier, while operating profit fell to USD 192 million from USD 223 million. At Enterprise Mobility Solutions, sales rose 35 percent to USD 2.1 billion, driven by sales from the Symbol business acquired in early 2007. Operating earnings increased to USD 451 million, from USD 323 million in the year-ago quarter.
