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Profits edge down at booming Moto

Bullish outlook

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Motorola blamed the Asian market for a wobble in profits in the first quarter this year. Net income fell slightly, from $692m to $686m year-on-year, although overall sales topped $10bn for the first time, up from $8.16bn in Q1 2005.

As with recent quarters, the surging mobile handset business tugged along the other divisions. Global market share reached 21 per cent, and the phone side accounted for $6.4bn of Motorola's revenue, up 45 per cent annually.

Networking sales fell 14 per cent to $1.43bn, although the group turned a narrow profit. Broadband income, which includes set top boxes, rose to $710m, with an even narrower profit, of $15m, down slightly year-on-year.

Motorola CEO Ed "Zandr" Zander predicted a better second quarter with revenue in the range of $10.3bn to $10.5bn, and higher net income. ®

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