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Motorola posts loss, declares war on Turks

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Motorola reported revenues of $7.5 billion down from $9.3 billion in the same period last year, and an overall loss of $232 million. Excluding adjustments the loss was $759 million. Semiconductors were Motorola's poorest performing business, but the company was upbeat about its handsets despite weakening demand.

Motorola said that Turkish GSM operator Telsim had been loaned $2 billion, and had defaulted on its first payback. The company said it was exploring legal action against Telsim. Nokia stopped shipping handsets to the operator last week.

Sales fell across all of Motorola's markets, although some boasted a slim profit.

The phone business or Moto's 'Personal Communications' segment, saw a $237 operating loss. A slash and burn approach earlier this year saw overlapping product lines cut, and the troubled business will have been cheered by a big 3G handset win earlier this week. The company said demand was weakest in Europe, while orders in Asia were up.

Carrier sales sank 14 per cent to $1.7 billion, and government and industrial sales fell 8 per cent to $1 billion, but turned a profit. As did the broadband business (which includes Voice over IP), which earned $145 million on sales of $760 million.

The chip business took the biggest hit, with orders halved to $1 billion, and a loss of $381 million. &Reg;

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