Motorola Issues Earnings Warning
CHICAGO (AP) _ Motorola Inc., battered by the economic slowdown, warned Friday that its first-quarter results will fall short of expectations due to ``significant weakness″ in orders for its products that are causing sales to slump.
Its stock promptly fell 98 cents a share, or 6 percent, to $16.31 in the opening minutes of trading on the New York Stock Exchange.
The cellphone and semiconductor maker said it expects to report an operating loss for the quarter unless orders pick up.
It blamed ``the sharp economic slowdown occurring in the United States and inventory corrections taking place broadly in technology markets worldwide.″
The warning was the second in six weeks for Schaumburg, Ill.-based Motorola, which has been reeling from swooning profits and stock for months.
The technology giant warned Jan. 11 of a substantial decline in sales this quarter and said investors shouldn’t expect a recovery until at least the second half of 2001.
Motorola has announced the elimination of more than 9,000 jobs from its cellphone manufacturing and semiconductor operations since early December, and indicated more are likely. The latest cuts were earlier this week when it laid off nearly 300 workers in its cellular phone unit and said it would continue finding ways to cut $2 billion in costs in the division in coming months.
Motorola is the world’s No. 2 cellphone maker behind Nokia and the No. 5 semiconductor maker.
On the Net:
Motorola site: http://www.motorola.com