Motorola loses ground to rivals

Motorola admitted to losing ground to its rivals

Mobile phone giant Motorola posted a fourth-quarter loss in 2008 as it slipped to fifth place in the global mobile phone market.

It reported a net loss of $3.6bn (£2.5bn) for the three months to the end of December, compared with a $100m profit for the same period in 2007.

The company also said it was suspending its quarterly dividend and looking for a new chief financial officer.

Paul Liska has left as CFO. No reason was given for his departure.

The firm said it lacked a popular handset to compete with its rivals and will now focus on mid-tier to high-end phones.

WORLD'S TOP MOBILE PHONE MAKERS 1. Nokia 2. Samsung Electronics 3. LG Electronics 4. Sony Ericsson 5. Motorola

The news sent Motorola shares down 10%.

The company said sales volumes were falling faster than the industry's.

Revenues for the quarter fell to $7.1bn from $9.65bn a year ago.