Motorola net disappoints; stock slides

Article Abstract:

Motorola Inc, which produces communications equipment and semiconductors, announces diminished 3rd qtr profits, and the company's stock falls sharply. The company earned $102 million, or 78 cents a share, on sales of $2.7 billion in the quarter. Motorola's profits were up 14.6 percent from $89 million, or 69 cents a share, in the preceding year, and sales were up 12 percent from $2.41 billion. According to the company, sales rose but operating profits fell in its cellular telephone equipment and two-way radio business because of research and development spending. Motorola's shares fell $7 on the New York Stock Exchange, closing at $52.75.

Semiconductors and related devices, Semiconductor industry, Profits, Telecommunications equipment, Securities, Cellular telephone equipment industry, Motorola Inc., MOT, Communications Equipment, Cellular Radio, Third Quarter, Profit, Stock, Financial Stability

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Siemens and GPT plan merger of U.S. units

Article Abstract:

Germany's Siemens AG and England's GPT Ltd plan to merge their US operations to compete in the $13 billion telephone equipment market in the US. The new company, Siemens Stromberg-Carlson, will have about 3 percent of the $13 billion US market in telephone equipment and about 4,000 employees. Siemens and GPT will each own 50 percent of the new company. One reason for the merger is the cost-effectiveness of producing in large volumes. Siemens would shut down its factory in Long Island, noting the high taxes, poor transportation and high electricity rates. The 270 workers at the factory are expected to be dismissed.

Foreign operations, Mergers, acquisitions and divestments, Siemens AG, Layoffs, Divestiture, Layoff, Divestment, Strategic Planning, Telecommunications Industry, Foreign Competition, Acquisition, Stromberg-Carlson Corp., GPT Ltd.

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