Motorolas Profits Rise, Sales Slump
The wireless hardware maker reports net earnings for the second quarter of $119 million, from a loss of $2.3 billion, but sales were down 10 percent from last year.Wireless hardware maker Motorola Inc. on Tuesday announced a profit for the second quarter of 2003, although sales were down from the previous year.
The Schaumburg, Ill., company reported net earnings for the quarter of $119 million, or five cents a share, compared with a net loss of $2.3 billion in the same quarter last year. Excluding special items, net earnings were $19 million, compared with $39 million in the year-ago quarter.
Second-quarter sales were $6.2 billion, down 10 percent from the year-ago quarter.
"While the companys 10 percent decline in sales versus last year is a disappointment, the fact that earnings per share, excluding special items, was only one cent lower is evidence of the progress the company has made in improving its cost structure in what is still a difficult environment for technology companies," said Mike Zafirovski, president and chief operating officer of Motorola. Officials predict sales of between $6.3 billion and $6.5 billion for the third quarter.