Feeds

Moto's profits plummet in Q4

Axing 3,500 jobs

Build a business case: developing custom apps

Motorola, the world's second largest mobile phone maker, is cutting 3,500 jobs, following a drastic fall in profits for the fourth quarter.

The company released its results for the three-month period ending 31 December and the full year, on Friday. Profits for the quarter dropped 48 percent compared with the same period in 2005. The Illinois-based company recorded profits of $624m for the quarter, down from $1.2bn the previous year. This represents earnings per share of $0.25, compared with $0.47 for the fourth quarter of 2005.

The performance of the mobile phone unit was a particular cause for concern with profit margin dropping to 4.4 per cent, down from 12 per cent in the third quarter. The poor showing comes on the back of a quarter that's seen Motorola's share price drop 28 per cent, as the firm cut prices to remain competitive.

"We are disappointed with our fourth quarter operating earnings performance. However, the company generated strong revenue growth and met or exceeded our goals in many areas during the quarter. I am confident that we remain well positioned for continued growth and success," said Ed Zander, chairman and chief executive of Motorola.

Earlier this month the firm's management had warned investors that fourth quarter results would not meet analysts' estimates.

Motorola's full year results paint a prettier picture for shareholders with sales of $42.9bn, representing a 22 per cent increase on 2005. The mobile phone giant shipped 217.4 million handsets in 2006, a 49 per cent increase on the previous year.

"Looking at the full year, I am pleased with our progress. Our business remains solid, and we will continue to execute on our focused, strategic plan to create value for our shareholders. We remain committed to increasing our profitability, while delivering compelling new products and solutions to our customers in 2007," said Zander.

With Nokia comfortably out in front as market leader in the mobile phone market, second-placed Motorola is feeling the heat from the chasing pack. Sony Ericsson's latest results, which were announced Wednesday, have seen it close in on Samsung in third place. Sony Ericsson announced a fourth quarter profit of €502 million, its best performance in this period since the companies began the venture in 2001.

Copyright © 2007, ENN

5 things you didn’t know about cloud backup

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.