SCHAUMBURG, Ill.-Shares of Motorola Inc. were up about 3 percent in early afternoon trading after the company reported promising second quarter results.
Discounting pre-tax charges of nearly $3.4 billion taken during the second quarter, Motorola said it had earnings of $48 million, or 2 cents per share, for the three months ended June 29.
Including the charges, Motorola reported a loss of $2.32 billion, or $1.02 per share for the quarter, compared with a loss of $759 million, or 35 cents per share, for second-quarter 2001.
The company recorded sales of $6.7 billion, a decrease from sales of $7.5 billion for the same period last year.
The Personal Communications Segment, which manufactures mobile phones, experienced $2.6 billion in sales, a 5-percent increase from second-quarter 2001. Motorola also said the segment’s market share is at 18 percent, up from 17 percent in the first quarter.
“Motorola continues to increase its substantial financial flexibility,” said Christopher Galvin, chairman and chief executive officer of Motorola. “At the end of the quarter we had approximately $6.5 billion in cash, cash equivalents and short-term investments, up about $500 million during the quarter. We also had $1.5 billion in short-term debt, of which about $500 million was in commercial paper. In the quarter, capital expenditures were $136 million, compared to depreciation of $514 million.”
Motorola said it expects sales in the third quarter to be approximately $6.7 billion, and sales in the fourth quarter to total approximately $7.5 billion. By comparison, sales from ongoing operations in the third and fourth quarters of 2001 were $7.2 billion and $7.3 billion, respectively.
On an operating basis, excluding special items, the company expects to achieve earnings of approximately 5 cents per share in the third quarter and 14 cents per share in the fourth quarter. Sales for the full year 2003 are expected to be approximately $29 billion.