Printer Friendly

MOTOROLA REPORTS HIGHER FOURTH QUARTER SALES, EARNINGS

 MOTOROLA REPORTS HIGHER FOURTH QUARTER SALES, EARNINGS
 SCHAUMBURG, Ill., Jan. 14 /PRNewswire/ -- Motorola, Inc. (NYSE: MOT) today reported higher sales and earnings for the fourth quarter of 1991.
 Fourth-quarter sales were $3.04 billion, up 4 percent from $2.93 billion in the fourth quarter of 1990. Earnings were $126 million, or 96 cents per share, compared with $109 million, or 82 cents per share, a year ago. Net margin on sales was 4.1 percent versus 3.7 percent in 1990.
 Sales for the full year increased 4 percent to $11.34 billion from $10.88 billion in 1990. Earnings were $454 million, or $3.44 per share, compared with $499 million, or $3.80 per share, a year earlier. Net margin on sales was 4.0 percent, compared with 4.6 percent a year ago.
 Gary L. Tooker, president and chief operating officer, said economic conditions remained sluggish in the U.S. and Europe during the fourth quarter, while Asian markets continued to grow. Motorola's semiconductor, paging and cellular subscriber businesses did well in the quarter, he said, and the company saw some improvement in its two-way land-mobile radio business.
 Tooker reviewed the following results of Motorola's major operations for the full year, compared with 1990:
 Communications Sector sales rose 2 percent and orders declined 2 percent. Operating profits were lower.
 The Communications Sector was divided into the Land Mobile Products Sector and the Paging and Telepoint Systems Group at the end of 1990. In the Land Mobile Products Sector, international orders improved in Asian markets, where major orders for trunked and secure voice systems were received. Orders in North America and Europe were lower, although both markets showed improvement in the fourth quarter.
 The sector's profitability was affected by continued investments in radio data communications and a major change in its North American distribution strategy. The direct sales force was reorganized and reduced, and a network of more than 1,000 dealers was developed and largely implemented.
 New technologies were developed to improve the efficiency of the radio frequency spectrum and provide more services to customers on both private and shared systems.
 In the Paging and Telepoint Systems Group, orders improved due to a strong second half. New product lines were introduced, including pagers for the emerging retail market. Motorola shipped its one millionth pager to Nippon Telegraph and Telephone in Japan in 1991, and introduced models the size of credit cards to that market. Volume shipments of handsets and home base stations for CT2 digital cordless telephone systems began during the fourth quarter.
 Sales in the Semiconductor Products Sector increased 7 percent, orders rose 8 percent, and operating profits were higher. Order growth was especially strong during the second half.
 For all of 1991, orders increased in the Japanese, Asia-Pacific and North American regions. Among major markets, order growth was highest in personal computer/workstation, consumer and communications segments.
 The sector's three major product groups all posted higher orders. Demand was highest for CMOS gate arrays, microprocessors, customer- specified microcontrollers, static RAMs, analog devices and power transistors.
 Several key partnerships were established during the year. Under a technology alliance with IBM and Apple Computer, Motorola will co- design, manufacture and market a family of RISC microprocessors called PowerPC. (Note)
 In the General Systems Sector, sales advanced 8 percent and orders rose 4 percent. Operating profits were lower. Growth in the Cellular Subscriber Group was offset by weakness in the Cellular Infrastructure Group.
 Motorola's Narrowband Advanced Mobile Phone Service (NAMPS) technology began gaining momentum in the marketplace. It provides up to three times the capacity of current AMPS systems. The Narrowband TACS system, specially designed for Japan, was placed into commercial service in the Tokyo market. The Motorola digital voice coder was chosen as the industry standard in the U.S. and Japan.
 The world's lightest cellular phone was introduced and contributed to the growth in subscriber equipment sales. Motorola also introduced a residential cordless phone designed to virtually eliminate the possibility of eavesdropping.
 The Computer Group introduced its MultiPersonal(TM) Computing strategy, a combination of industry standard hardware and software products that enable business users to share and access information in office networks.
 Information Systems Group sales declined 2 percent and orders were 11 percent lower. The operating loss was larger than a year ago. Codex implemented workforce reductions and a restructuring of operations as it continued its transition to networking products during the year. Orders at UDS increased slightly as it added a series of modem products and expanded in Europe.
 The Government Electronics Group's sales decreased 8 percent and orders were down 5 percent. Operating profits were lower. The new Secure Telecommunications business unit introduced several products and received a major contract for equipment to be used in the Peace Shield program in Saudi Arabia.
 In the Automotive and Industrial Electronics Group, sales were up 8 percent and orders rose 7 percent, despite a downturn in the North American automotive market and softness in other regions. Operating profits were lower compared with 1990, which included non-recurring gains.
 In the "Other Products" reporting segment, the increased loss was due substantially to investments in the proposed Iridium(TM) global communications system.
 Investments in research and development totaled $1.06 billion in 1991, compared with $1.04 billion in 1990. Fixed asset expenditures increased to $1.32 billion from $1.26 billion in 1990.
 George Fisher, chairman and chief executive officer, said Motorola's fourth quarter results reflect the effects of sluggish economies in the U.S. and Europe. This impact should continue to be felt in the first half of 1992, he said, with the potential for modest economic growth in the second half.
 He said the increases in semiconductor and paging orders during the second half of 1991 "are positive signs for long-term recovery. A modest improvement in capital spending should benefit communications and computer markets. The product cycles for new digital communications technologies provide opportunities for renewed growth throughout the world. Increases in the electronic content of automobiles should continue to help our businesses in this market," he said.
 "Motorola's quality and cycle-time reduction programs remain central in our efforts to improve productivity and customer satisfaction," he said. "While we are tightly controlling costs, we are investing in exciting technologies for the future.
 "World events in 1991 make us more confident than ever that we are in the decade of wireless communication. The emergence of market-driven economies in Eastern Europe and throughout the developing world indicates that the microelectronic revolution has only begun. We think Motorola will play an important role in making it happen," Fisher said.
 Note: PowerPC is a trademark of IBM.
 MOTOROLA, INC. AND CONSOLIDATED SUBSIDIARIES
 Statements of Consolidated Earnings
 Millions of dollars except share figures
 Fourth Quarter Total Year
 '91 '90 '91 '90
 Net sales $3,039 $2,934 $11,341 $10,885
 Manufacturing and
 other costs of sales 1,914 1,839 7,245 6,882
 Selling, general, and
 admin. expenses 641 694 2,468 2,414
 Depreciation 278 241 886 790
 Interest, net 36 36 129 133
 Total costs and expenses 2,869 2,810 10,728 10,219
 Earnings before income taxes 170 124 613 666
 Income taxes 44 15 159 167
 Net earnings $ 126 $ 109 $ 454 $ 499
 Net earnings per share $ .96 $ .82 $ 3.44 $ 3.80
 Weighted average shares
 outstanding (in millions
 of shares) 132.1 131.7 131.9 131.3
 Dividends per share $ .19 $ .19 $ .76 $ .76
 Net margin on sales 4.1% 3.7% 4.0% 4.6%
 Return on average
 invested capital(A) 7.8% 9.4% -- --
 (A) -- Based on the performance of the four preceding quarters
 ending with December 1991 and December 1990.
 MOTOROLA, INC. AND CONSOLIDATED SUBSIDIARIES
 Condensed Consolidated Balance Sheets
 (in millions)
 ASSETS Dec. 31, Dec. 31,
 1991 1990
 Cash and cash equivalents $ 302 $ 265
 Short-term investments, at cost
 (approximating market) 231 312
 Accounts receivable, less allowance for
 doubtful accounts (1991, $79; 1990, $68) 1,953 1,857
 Inventories 1,242 1,245
 Other current assets 759 773
 Total current assets 4,487 4,452
 Property, plant and equipment, less accumulated
 depreciation (1991, $3,195; 1990, $2,781) 4,194 3,778
 Other assets 694 512
 Total assets $9,375 $8,742
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Notes payable and current portion of
 long-term debt $ 852 $ 995
 Accounts payable 897 889
 Accrued liabilities 1,314 1,164
 Total current liabilities 3,063 3,048
 Long-term debt 954 792
 Other liabilities 727 645
 Stockholders' equity 4,631 4,257
 Total liabilities and stockholders' equity $9,375 $8,742
 MOTOROLA, INC.
 Information by Industry Segment
 Information about the company's operations in different industry
 segments for the years ended Dec. 31, 1991 and 1990 is summarized
 below:
 Net sales
 Dollars in millions for the years ended 12/31
 1991 1990 % Change
 Communications products $ 3,629 $3,560 1.9
 Semiconductor products 3,679 3,433 7.2
 General systems products 2,847 2,648 7.5
 Information systems products 587 599 (2.0)
 Government electronic products 704 766 (8.1)
 Other products 392 355 10.5
 Adjustments & eliminations (497) (476) (4.2)
 Industry total $11,341 $10,885 4.2
 Operating profit
 for the years ended 12/31
 % of % of
 1991 sales 1990 sales
 Communications products $191 5.3 $230 6.5
 Semiconductor products 356 9.7 320 9.3
 General systems products 330 11.6 354 13.4
 Information systems products (13) (2.2) (1) (.1)
 Government electronic products 63 8.9 68 8.9
 Other products (41) (10.5) (6) (1.7)
 Adjustments & eliminations 4 -- 1 --
 Industry total 890 7.8 966 8.9
 General corporate expense (148) (167)
 Interest expense, net (129) (133)
 Earnings before income taxes $613 5.4 $666 6.1
 -0- 1/14/92
 /CONTACT: George Grimsrud of Motorola, 708-576-2346/
 (MOT) CO: Motorola, Inc. ST: Illinois IN: CPR SU: ERN


JT -- NY076 -- 9777 01/14/92 17:55 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 14, 1992
Words:1652
Previous Article:NORTHSTAR COMPUTER FORMS REPORTS RECORD FOURTH QUARTER AND YEAR END SALES
Next Article:THE TORONTO STOCK EXCHANGE MARKET CLOSING
Topics:


Related Articles
MOTOROLA REPORTS HIGHER SECOND-QUARTER SALES AND EARNINGS
MOTOROLA REPORTS RECORD FOURTH QUARTER SALES, EARNINGS
MOTOROLA REPORTS RECORD FIRST QUARTER RESULTS
MOTOROLA REPORTS RECORD THIRD-QUARTER SALES, EARNINGS
MOTOROLA REPORTS RECORD FOURTH QUARTER AND ANNUAL SALES AND EARNINGS
MOTOROLA REPORTS RECORD THIRD-QUARTER SALES, EARNINGS
Motorola's Fourth-Quarter Earnings Outlook.
Motorola Reports Second-Quarter 2003 Financial Results.
Motorola Points to Strong Growth in Orders.
Compal Communications wins orders for Android phones.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters