Motorola 3Q08 results

Publié le par Jean Arnal


Motorola lost $397m in 3Q08, on revenues of $7.5bn (down 15%). Revenues in the handset division was $3.1bn, down 31% and the division lost $840m. It shipped 25.4m units, down 32%, and is surpassed by Sony Ericsson for the third market place. Motorola has now 8,5% global market share. There is no sign of bottoming in the division and shipment are even seen to reach 20m units in 4Q09, despite the Holiday Seasons high sales. Hopefully, decline in the handset division was partially offset by gains in other divisions. The Home & Networks mobility division saw its sales flat to $2.4bn with earnings of $263m (+65%). The Enterprise division reported revenues of $2bn (+4%) with earnings of $403m (+23%). Motorola is now planning to reinforce its restructuring efforts. If spinning off the handset division is postponed due to economical and financial turmoil, it plans to cut another $600m in operating costs next year, slash some 3000 jobs (of which 2000 in the handset division). The company stock price fell 8% to $5 on the news.

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