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Last Updated: Wednesday, 23 January 2008, 14:42 GMT
Weak handset sales knock Motorola
Motorola handset
Analysts say Motorola needs a better range of phones
Motorola has seen its latest profits slump 84%, hit by a sharp fall in sales of its mobile phone handsets.

Warning that recovery in its handset unit will take longer than expected, it made a net profit of $100m (51m) for the last three months of 2007.

This compares with a profit of $623m for the same fourth quarter period a year earlier. The US giant's mobile phone sales were down by 38%.

Motorola parted company with former chief executive Ed Zander on 1 January.

Mr Zander insisted that his departure was of his own choosing, and that he simply wanted to spend more time with his family.

His successor, Greg Brown, said "there is a lot more work to be done" to turnaround the mobile phone unit.

"Our primary focus is on improving profitability and enhancing our product portfolio in this business," he added.

Losses

Motorola's overall sales between October and December fell 18% from a year earlier to $965m.

The 38% fall in sales at the mobile phone division mean that the unit - the largest in the company - made an operating loss of $388m.

Motorola's other business divisions performed better, with sales of its TV set-top boxes and modems up 11%.

The company is now continuing with cost-cutting efforts that saw it cut 7,500 jobs last year.

SEE ALSO
Motorola boss Zander to quit job
30 Nov 07 |  Business
Motorola issues profits warning
12 Jul 07 |  Business
Motorola unveils 4,000 job cuts
31 May 07 |  Business
Icahn raises pressure on Motorola
01 May 07 |  Business
Phone problems see Motorola loss
18 Apr 07 |  Business
3,500 to go in Motorola jobs cull
19 Jan 07 |  Business

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