Motorola Affirms Q3 Figures, Cuts More Jobs
Staff -- TWICE, 1/8/2002
Schaumburg, Ill.— Cellphone manufacturer Motorola said it still expects to achieve the estimates of fourth-quarter 2001 sales and earnings that it provided last October. At the time, the company said it expected fourth-quarter sales for ongoing operations to be flat to 3 percent higher, compared with the $7.2 billion registered in the third quarter of 2001.
It still expects a pro forma operating loss of 4 to 5 cents per share in the fourth quarter.
At the same time, Motorola said its expects to be profitable in the full year of 2002, supported by proactive actions this quarter, which should result in savings of about $865 million in 2002 and about $1.1 billion in the following year.
Among the cost-saving actions taken are 9,400 job cuts, to be completed over the next 12 months. This brings the total of jobs eliminated this year to 48,000, including transfers to other companies. The company believes that sales for ongoing operations could be between 5 percent and 10 percent lower in 2002 than in 2001.
