Motorola is exploring strategic alternatives for its Mobile Devices business. Motorola said its alternatives may include the separation of Mobile Devices from its other businesses in order to permit each business to grow and better serve its customers.
"We are exploring ways in which our Mobile Devices Business can accelerate its recovery and retain and attract talent while enabling our shareholders to realize the value of this great franchise" said Greg Brown, President and Chief Executive Officer.http://www.motorola.com
- In January, Motorola reported Q4 2007 sales of $9.65 billion and net earnings of $0.04 per share, which include $0.05 per share from continuing operations and a net loss of $0.01 per share from discontinued operations. The company said its Mobile Devices business remains challenged, with sales declining 38 percent versus prior-year quarter, while its Home & Networks Mobility and Enterprise Mobility Solutions business continued to deliver strong results.
"We are focused on aggressively rationalizing the company's cost structure and working to get Mobile Devices back on track," said Greg Brown, chief executive officer of Motorola. "The recovery in Mobile Devices will take longer than expected and there is a lot more work to be done. Our primary focus is on improving profitability and enhancing our product portfolio in this business. At the same time, we are very pleased with the continued strong performance of our Home and Networks Mobility and Enterprise Mobility Solutions businesses."
Mobile Devices segment sales were $4.8 billion, down 38 percent compared with the year-ago quarter. The operating loss was $388 million, compared with operating earnings of $341 million in the year-ago quarter. For the full year 2007, sales were $19.0 billion, a 33 percent decrease compared to 2006, and the segment incurred an operating loss of $1.2 billion, compared to operating earnings of $2.7 billion in 2006. During the quarter, the company shipped 40.9 million handsets.
Home and Networks Mobility segment sales were $2.7 billion, up 11 percent compared with the year-ago quarter. Operating earnings decreased to $192 million, compared with operating earnings of $223 million in the year-ago quarter. For the full year 2007, sales were $10.0 billion, a 9 percent increase compared to 2006, and the segment generated operating earnings of $709 million, compared to $787 million in 2006.
Enterprise Mobility Solutions segment sales were $2.1 billion, up 35 percent compared with the year-ago quarter, driven by sales from the Symbol business acquired in early 2007. Operating earnings increased to $451 million, compared with operating earnings of $323 million in the year-ago quarter. For the full year 2007, sales were $7.7 billion, a 43 percent increase compared to 2006, and the segment generated operating earnings of $1.2 billion, compared to $958 million in 2006.
