Motorola Posts 2Q Net Loss of $2.3 Billion
Motorola Corp. on Tuesday posted its worst ever net loss, the wireless technology companys sixth consecutive quarterly loss.
Including massive restructuring charges, the Schaumburg, Ill., company reported a second quarter 2002 net loss of $2.3 billion ($1.02 per share), compared with a net loss last year of $759 million (35 cents per share).
The loss included a pre-tax restructuring charge of $3.4 billion, or $2.4 billion after taxes, due largely to employee severance pay and the costs of exiting multiple business units in the past year.
Excluding these charges, the company reported a profit of $48 million, (two cents per share) compared with a loss of $238 million (11 cents per share) last year.
"After 21 months of hard work, this quarters results add the return to profitability, excluding the impact of special items, to Motorolas improved cash and balance sheet performance," said Edward Breen, Motorolas president and chief operating officer, in a statement. "Not only have we announced the actions that will substantially complete the companys restructuring program but, excluding the impact of special items, we returned to profitability one quarter earlier than previously expected."
The company reported that its handset business posted sales of $2.6 billion, up 5 percent from a year ago, although orders fell 11 percent.
The semiconductor unit reported a net loss of $1.3 billion, compared with a loss last year of $444 million. However, the company said orders were up 25 percent.