Motorola reveals third-quarter operating loss of £105m
Motorola has reported a third consecutive quarterly loss.
Its third-quarter operating loss was £105m, or seven cents a share.
Motorola plans to cut 22% of its workforce this year, in response to a dwindling global telecommunications market.
Chairman and chief executive Christopher Galvin says: "Until the unexpected and horrific atrocities of September 11, our predictive indicators seemed to indicate that the world would most probably return to more positive economic growth in the first or second quarter of 2002.
"These events make near-term forecasting more challenging."
Sales in Motorola's semiconductor division fell by 48% from last year to £759m, while orders were down 49%.
The overall operating loss of £105m for the third quarter compares with a profit of £443m in the same period last year.
Sales for the quarter dropped to £5.1bn, from £6.6bn last year.
But Mr Galvin says prompt action from the US Federal Reserve and the White House will help offset economic uncertainty.
He added: "We believe the unpredictability of future military and other responses, associated with a global war on terrorism, will be offset by the positive near-term stimulus of tax relief, interest rate reduction and a massive infusion of liquidity by government authorities."
