Motorola says it will cut 15,000 jobs; 2d-quarter loss seen; stock falls after news
Article Abstract:
Motorola's plans to slash 15,000 jobs, or 10% of its work force, reinforces the difficulties in the semiconductor industry. The company also announced that it would take a $1.95 billion charge against its 2nd qtr 1998 earnings and report an operating loss for that period. Motorola's newly-revised projection stunned analysts, as the company had expected profits to approach its 1st qtr 1998 profit of 23 cents a share. Analysts already has dropped their 2nd qtr 1998 per-share projections for Motorola, from 43 cents to 20 cents. First Call attributes the problem to oversupply compounded by the Asian economic crisis. Motorola, which which has not shown a loss since the 1985 semiconductor slump, said the moves should eventually save $750 million annually. Unspecified job reductions should occur through Jun 1999. Other plans call for closing semiconductor and paging operations plants in addition to shedding underachieving businesses.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Some humbling times for a high-tech giant
Article Abstract:
Motorola on Oct 7, 1996 reported a 5% drop in revenue and a 58% decrease in profit for its 3rd qtr, and the company projects more financial stress in its 4th qtr, as well. The situation is a very different from the period between Dec 1992 and Dec 1995 when Motorola reported profits of $1.78 billion and sales of $27 billion. The company is being impacted by a variety of trends. Worldwide semiconductor demand has fallen 10% in 1996 instead of expanding as projected. Also, Motorola's wireless communications business has been hard hit by cellular telephone price wars coupled with slower sales, while its novel products, including two-way pagers, have had weak beginnings. Motorola executive VP Robert L. Growney contends that Motorola has had financial challenges before and knows what steps to take. The firm is moving to cut expenses without reducing investment in new ventures that it forecasts will eventually achieve success.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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No need to worry: Mr. Coffee won't get the Y2K jitters
Article Abstract:
Manufacturers and consumer research groups are expecting few Year 2000-related failures for home electronics that are not computers. Microchips in home appliances track time and day of the week, but rarely the date. The same for automobile electronics: used as a clock, but not as a calendar. On some VCRs, setting the machine this year to record a TV show next year may have to be done manually, instead of using the VCR Plus function. Some cameras and camcorders may not print dates on film correctly.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1999
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