Let’s Talk Business
SCHAUMBURG, Ill., Jan. 23 /PRNewswire-FirstCall/ -- Motorola, Inc. (NYSE: MOT) said today it expects sales in the first quarter of 2002 to be between $6.0 billion and $6.2 billion. The company expects to incur a loss, excluding special items, of between (11) cents and (14) cents per share in the first quarter.
The company continues to expect sales from ongoing operations for the full-year 2002 to decline between 5 percent and 10 percent compared to 2001. The company confirmed that it continues to expect to return to profitability in the third quarter of 2002 and be profitable for the full year 2002.
Motorola also said that it believes the current 2002 consensus earnings expectation of 4 cents per share for the full year, excluding special items, is not only achievable, but can be exceeded. The company believes that, if annual sales are near the high end of the company’s guidance range and the wireless handset and semiconductor industries meet growth expectations, it is possible for the company to earn 15 cents per share in 2002, excluding special items, as the company previously discussed. The gross margin improvements anticipated in these two businesses if their industries meet growth expectations, coupled with the expected savings from cost reductions, would make this level of earnings possible.
Statements about the company’s sales and earnings outlook are forward-looking statements based on current expectations and involve risks and uncertainties. Motorola wishes to caution the reader that the factors below and those on pages F-29 through F-33 of the appendix to Motorola’s Proxy Statement for the 2001 annual meeting of stockholders and in its other SEC filings could cause Motorola’s actual results to differ materially from those stated in the forward-looking statements. These factors include Motorola wishes to caution the reader that the factors below and those on pages F-29 through F-33 of the appendix to Motorola’s Proxy Statement for the 2001 annual meeting of stockholders and in its other SEC filings could cause Motorola’s actual results to differ materially from those stated in the forward-looking statements. These factors include: (i) the company’s ability to effectively carry out the planned cost-reduction actions; (ii) the potential for unanticipated results from cost-reduction activities on productivity; (iii) the impact of the slowdown in the overall economy and the uncertainty of current economic conditions; (iv) the impact of ongoing tax relief, interest rate reduction and liquidity infusion efforts to stimulate the economy; (v) the decline in the telecommunications, semiconductor and broadband industries; (vi) the company’s continuing ability to access the capital markets on favorable terms; (vii) demand for the company’s products, including products related to new technologies; (viii) the company’s ability to continue to increase profitability and market share in its wireless handset business; (ix) the company’s success in the emerging 3G market; (x) the demand for vendor financing and the company’s ability to provide that financing in order to remain competitive; (xi) unexpected liabilities or expenses, including unfavorable outcomes to any currently pending or future litigation, including any relating to the Iridium project; (xii) the levels at which design wins become actual orders and sales; (xiii) the success of alliances and agreements with other companies to develop new products and services; (xiv) difficulties in integrating the operations of newly-acquired businesses and achieving strategic objectives, cost savings and other benefits; (xv) volatility in the market value of securities held by Motorola; (xvi) the impact of foreign currency fluctuations; and (xvii) the impact of changes in governmental policies, laws or regulations.
Motorola, Inc. (NYSE: MOT) is a global leader in providing integrated communications solutions and embedded electronic solutions. Sales in 2001 were $30 billion.
SOURCE Motorola, Inc.