Motorola expects chip growth to resume
Article Abstract:
Motorola revealed during a conference call with analysts that it expects the semiconductor industry to grow in 1997, but the company itself plans to take a fourth quarter charge to related to cost-saving measures. The charge will be in the tens of millions of dollars and will pay for job cuts, among other things. The call followed the release of Motorola's third-quarter earnings report for 1996, which demonstrated a significant drop in earnings. Motorola's news caused its stock to fall $1 to close at $48.75 on Oct 8, 1996, and some analysts lowered their earnings projections for the rest of 1996 and for 1997. Other analysts said the projections about a semiconductor upswing made them cautiously optimistic, although Motorola says the 1997 market will not achieve the 10% growth required to increase prices. Motorola says its own earnings will be kept down for the rest of 1996 and early 1997 because of investments in new technologies, including a satellite communications system and flat-panel displays.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Woes persist as Motorola posts results
Article Abstract:
Motorola announced earnings of 1 cent a share for the 2nd qtr 1998 ended Jun 27. The surprise profit still does not indicate a reversal for the company's problems in the semiconductor and wireless communications markets. Analysts had projected a 4-cent loss following Motorola's Jun 1998, warning that it would report its first quarterly loss since 1985. Total revenue of $7.02 billion represented a 6.6% slide from the 2nd qtr 1997's $7.52 billion. The decline in new orders, meanwhile, exceeded those of sales in the majority of its significant business segments. Motorola CEO Christopher Galvin cautioned that the Asian fiancial problems would continue to afflict Motorola at least throughout 1998. Recent quarterly earnings problems have weakened Motorola's reputation as a bellwether technology stock and key stock market player. The Motorola quarterly earnings excluded a one-time charge of $1.91 billion.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Another jolt for investors of technology: Motorola sees earnings lower than expected
Article Abstract:
Motorola projected its 1st qtr 1998 earnings to fall well below Wall Street's expectations of 49 cents a share. The announcement represents another setback for technology investors already troubled by Intel's similar concession on Mar 4, 1998. Motorola blamed the likely shortfall on weak Asian semiconductor sales. By comparison, analysts attributed Intel's expected problem to significant shifts in the PC chip market. Motorola's announcement likely will compound stock market anxiety caused by the Intel warning, according to analysts. A decrease in consumer demand, coupled with the devaluation of many Asian currencies, have contributed to slower Motorola sales and stronger Asian competition. Motorola, which drew more than 25% of its 1997 earnings from Asia, did not predict a recovery time.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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