Electronics giant Motorola last night reported a 41% decline in adjusted fourth-quarter net earnings but still managed to meet Wall Street expectations. The company said in a statement that it turned a profit of $335 million from October to December 2000, down 41% compared with the same period in 1999.
Earnings per share fell from 25 cents to 15 cents but were in line with predictions made by analysts at First Call.
Sales in the quarter rose 11%, to $10.1 billion. Including special items, earnings were $135 million, or six cents per share, compared with $323 million, or 15 cents per share, a year earlier.
'Despite the higher sales, increases in manufacturing costs and operating expenses caused operating profits to decline,' said Motorola President Robert Growney. 'We have taken steps to reduce the cost structure in our manufacturing activities and to tightly control operating expenses. Further steps will be taken in 2001 to return the corporation to generating growth in its earnings.'
For the full year, sales from ongoing operations rose 17%, to $37.6 billion, from $32 billion in 1999. Full-year earnings from ongoing operations, excluding special items, were $1.9 billion, or 84 cents per share, compared with $1.4 billion, or 63 cents per share, a year earlier.
Motorola announced in December that 750 jobs are to go at their manufacturing facility in Swords, Co Dublin after the sale of the plant to Canadian electronics manufacturer Celestica. Celestica Ireland signed a two year deal with Motorola worth $750 million to supply them with mobile phones, two-way radios and pagers. Celestica retained 650 of the 1,400 currently employed by Motorola in Dublin. 2,700 staff are being laid off by the company worldwide.
