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MOTOROLA REPORTS HIGHER FIRST QUARTER RESULTS

 MOTOROLA REPORTS HIGHER FIRST QUARTER RESULTS
 SCHAUMBURG, Ill., April 14 /PRNewswire/ -- Paced by growth in


semiconductors, paging and cellular telephones, Motorola, Inc. (NYSE: MOT) today reported higher sales and earnings for the first quarter of 1992.
 Sales rose to $3.05 billion, up 11 percent from $2.74 billion in the first quarter of 1991. Earnings were $127 million, or 96 cents per share, compared with $116 million, or 88 cents per share, a year earlier. Net margin on sales was unchanged at 4.2 percent.
 Reviewing the results of Motorola's major operations for the first quarter, compared with the first quarter of 1991, Gary Tooker, president and chief operating officer, said sales in the Semiconductor Products Sector advanced 21 percent to a record $1.07 billion. Orders rose 28 percent and operating profits were higher.
 Orders improved in the Asia-Pacific, North American and European regions, but declined in Japan. All market segments except federal/military recorded double-digit order growth, led by distributor, automotive, computer and communications. Among product categories, demand was highest for microcontrollers, dynamic RAMs, gate arrays, and radio frequency components.
 A technology alliance with Unisys Corp., announced during the quarter, provides for the co-definition of new design and processing technologies for integrated circuits to be used in future Unisys computer systems. As a result, Unisys will phase out its own chip fabrication operations.
 The sector won its fourth consecutive Dataquest ''Semiconductor Supplier of the Year'' award. It is based on a survey of 250 European, Japanese and U.S. electronics companies that ranked suppliers on factors such as quality and customer service.
 In the Communications segment businesses, composed of the Land Mobile Products Sector and the Paging and Telepoint Systems Group, sales rose 7 percent to $944 million. Orders increased 8 percent and operating profits were flat.
 In Land Mobile Products, orders were higher in Asia and Japan, but lower in Europe and North America. A new generation of compact, lightweight portable two-way radios was introduced during the quarter. The first models offer features such as programmable power levels, tunable bandwidth across the entire VHF and UHF frequency bands, new noise-canceling audio technology, priority channel scanning and call alert signaling.
 To help develop the full potential of the wireless data industry worldwide, Motorola announced the opening up of radio data protocols that had previously been proprietary.
 In Paging and Telepoint Systems, orders for paging products set a record for any quarter. Significant growth came from the United Kingdom, Italy, Germany, Korea, Thailand and China. The group received a $34 million award for a nationwide paging system in Taiwan.
 Commercial CT2/CAI Telepoint service was launched in Singapore, and attracted 18,000 users in two months. Other Motorola-manufactured systems began operating in Bangkok, Thailand and Hong Kong.
 General Systems Sector sales rose 11 percent to $773 million. Orders increased 24 percent and operating profits were higher.
 Motorola and Northern Telecom announced plans to form a joint venture to sell and service cellular telephone networks throughout North, Central and South America and the Caribbean.
 U.S. West NewVector signed a 10-year alliance to upgrade cellular operations in its service areas. Systems in Seattle, Minneapolis-St. Paul and Denver will be replaced with Motorola's Narrow-band Advanced Mobile Phone Service (NAMPS) infrastructure equipment. Outside the U.S., Motorola won a major cellular system order for Zhejiang Province in China.
 Motorola and Bell Atlantic Mobile Systems announced a trial cellular based Personal Communications Service designed to provide users with a single, personal telephone number that makes them reachable at home, in the office or on the road. The system trial is to take place in Pittsburgh later this year.
 The Computer Group disclosed plans to market single-board computers that will use the Motorola 88110 Symmetric Superscalar(TM) RISC microprocessor. The group also signed agreements with 45 value-added resellers.
 Sales in the Government Electronics Group decreased 11 percent to $142 million. Orders were 31 percent lower, while operating profits declined. The group received two contracts for RF transponders to be used in Strategic Defense Initiative satellites.
 In the Information Systems Group, sales declined 5 percent to $145 million. Orders rose 7 percent, while operating profits were higher. Codex implemented new internal information systems to support its transition from a components vendor to a networking systems provider. At UDS, the highest growth was in digital products. UDS entered the local area network market with the announcement of the LanFast(TM) network modem.
 In the Automotive and Industrial Electronics Group, sales increased 46 percent, orders rose 37 percent and operating profits were higher. The results reflect an upward trend in U.S. automotive production versus the depressed levels of a year ago. In addition, automotive electronics applications are increasing in the U.S., as well as in Europe, where vehicle emission requirements are becoming stricter. The group's sales are included in the ''other products'' segment.
 George Fisher, chairman and chief executive officer, said, ''During the first quarter, we announced a new set of ambitious goals aimed at further improving quality, reducing cycle time and achieving total customer satisfaction. We believe this is the most effective strategy for sustained, long-term growth,'' he said.
 ''Near-term economic signs are mixed in some parts of the world, but overall, appear somewhat more encouraging,'' Fisher said. ''Our semiconductor, paging and cellular telephone businesses continue to grow. However, we realize that part of our semiconductor growth reflects replenishing of customer inventories. Moderate recovery occurred in automotive markets during the quarter,'' he said.
 ''The increasing global demand for paging and cellular telephone products, combined with the success of newer digital radio frequency technologies, reinforces our confidence in the future,'' Fisher said. ''Today, more than ever, we look forward to an exciting world of global wireless communications.''
 MOTOROLA, INC. AND CONSOLIDATED SUBSIDIARIES
 Statement of Consolidated Earnings (Unaudited)
 Dollars in millions except share figures
 First Quarter(A)1992 1991
 Net Sales $3,055 $2,743
 Manufacturing and
 other costs of sales 1,947 1,732
 Selling, general, and
 admin. expenses 680 626
 Depreciation 220 191
 Interest, net 36 33
 Total costs and expenses 2,883 2,582
 Earnings before
 income taxes 172 161
 Income taxes 45 45
 Net earnings 127 116
 Net earnings per share $ .96 $ .88
 Dividends per share .19 .19
 Net margin on sales 4.2% 4.2%
 Return on average
 invested capital (B) 7.8% 8.9%
 R&D expenditures 288 256
 Weighted average shares
 outstanding (in millions
 of shares) 132.7 131.7
 (A) First quarters ended April 4, 1992 and March 30, 1991.
 (B) Based on the performance of the four preceding quarters ending with April 4, 1992 and March 30, 1991.
 The sales and earnings results reported herein include, in the opinion of management, all adjustments (consisting of reclassifications and normal recurring adjustments) necessary for a fair statement of income. The results for the quarter are not necessarily indicative of the results to be expected for the full year.
 Condensed Consolidated Balance Sheets (unaudited)
 (in millions)
 ASSETS April 4, Dec. 31,
 1992 1991
 Cash and cash equivalents $ 421 $ 302
 Short-term investments, at cost
 (approximating market) 266 231
 Accounts receivable, less allowance for
 doubtful accounts (1992, $76; 1991, $79) 1,826 1,953
 Inventories 1,260 1,242
 Other current assets 786 759
 Total current assets 4,559 4,487
 Property, plant and equipment, less
 accumulated depreciation
 (1992, $3,366; 1991, $3,195) 4,215 4,194
 Other assets 724 694
 Total assets $9,498 $9,375
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Notes payable and current portion of
 long-term debt $ 659 $ 852
 Accounts payable 799 897
 Accrued liabilities 1,291 1,314
 Total current liabilities 2,749 3,063
 Long-term debt 1,255 954
 Other liabilities 722 728
 Stockholders' equity 4,772 4,630
 Total liabilities, stockholders' equity $9,498 $9,375
 Motorola, Inc.
 Information by Industry Segment (unaudited)
 Information about the company's operations in different industry
 segments for the quarters ended April 4, 1992, and March 30, 1991,
 is summarized below:
 Net sales
 Dollars in millions for the first quarter
 1992 1991 Percent
 Change
 Semiconductor products $1,066 $ 883 20.7
 Communications products 944 879 7.5
 General systems products 773 698 10.8
 Government electronic products 142 160 (11.0)
 Information systems products 145 153 (5.2)
 Other products 121 83 46.6
 Adjustments & eliminations (136) (113) (22.3)
 Industry segment totals $3,055 $2,743 11.4
 -0- 4/14/92
 /CONTACT: George Grimsrud of Motorola, 708-576-2346/
 (MOT) CO: Motorola, Inc. ST: Illinois IN: TLS SU: ERN


KD -- NY091 -- 8407 04/14/92 18:02 EDT
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