Motorola reports 45 percent decline in third-quarter profit

Motorola Inc., the world's second-largest cell-phone maker after Finland's Nokia Corp., on Tuesday reported a 45 percent sharp decline in third-quarter profit.

Earnings for the third quarter were 968 million dollars, or 0. 39 dollars a share, down from 1.75 billion dollars, or 0.69 dollars a share, a year earlier.

"While our third-quarter sales were slightly below our guidance, we are pleased with our earnings," said Motorola Chief Executive Ed Zander.

Total revenue in the third quarter was 10.6 billion dollars, up 17 percent from 9.05 billion dollars a year ago.

"Each of our business segments and total Motorola improved operating margin versus the second quarter of 2006, excluding highlighted items," Zander said.

"With our strong balance sheet, leadership technologies and proven record of growth, Motorola is well positioned to continue creating value for its shareholders as one of the world's leading technology companies," he added.

Mobile Devices Segment sales were 7.03 billion dollars, up 26 percent compared with the year-ago quarter.

Operating earnings increased to 819 million dollars, including a charge of 16 million dollars for acquisition-related in-process research and development, compared with operating earnings of 593 million dollars in the year-ago quarter.

Excluding highlighted items, the segment's operating margin improved to 11.9 percent versus 11.2 percent in the second quarter of 2006 and 11.0 percent in the year-ago quarter, as a result of new product launches, supply chain cost reductions and higher technology and platform licensing-related income.

Source: Xinhua