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 SCHAUMBURG, Ill., Oct. 12 /PRNewswire/ -- Motorola Inc. (NYSE: MOT)

today reported higher sales and earnings in the third quarter and first nine months of 1992.
 Third-quarter sales rose 24 percent to $3.40 billion from $2.75 billion in the third quarter of 1991. In the first nine months, sales reached $9.59 billion, up from $8.30 billion a year ago.
 Third-quarter earnings were $129 million, or 97 cents per share, compared with $93 million, or 70 cents per share, in the third quarter of 1991. Earnings in the first nine months were $402 million, or $3.02 per share, compared with $328 million, or $2.48 per share, a year earlier.
 Net margin on sales was 3.8 percent in the third quarter, compared with 3.4 percent a year ago, while in the first nine months, it was 4.2 percent against 3.9 percent in the prior year.
 Gary Tooker, president and chief operating officer, reviewed the following third-quarter results of Motorola's major operations compared with the year-earlier third quarter:
 The Semiconductor Products Sector's sales increased 24 percent to a record $1.15 billion. Orders rose 34 percent, and operating profits were higher.
 Orders increased in the Asia-Pacific region, Europe and the Americas. Orders in Japan were flat. All market segments posted gains, led by personal computer/work station, communications, distribution, industrial, consumer, and automotive segments. Product categories experiencing the highest growth included fast static RAMs, MOS gate arrays and communications (radio frequency) devices.
 Motorola and IBM announced initial production of the first Power PC(a) microprocessor resulting from their joint design center in Austin, Texas. Called the PowerPC 601(a), it contains 2.8 million transistors on a silicon chip only four-tenths of an inch on a side.
 In the communications segment businesses, composed of the Land Mobile Products Sector and the Paging and Wireless Data Group, sales increased 20 percent to $1.04 billion and orders rose 34 percent. Operating profits were higher.
 In Land Mobile Products, orders were higher in all major geographical markets, led by Asia. Orders in the U.S. were higher than a year ago, when changes were implemented in the North American distribution organization. U.S. orders increased in all major markets, except government. The sector continues to pursue cost reduction opportunities worldwide.
 The MTS2000(TM) radio, Motorola's smallest trunked and secure voice portable, began shipping during the quarter. It incorporates Flashport, a new software capability that uses flash memory chip technology. This enables users to upgrade features by loading software into a radio in much the same way that software is loaded into a computer.
 Paging orders increased rapidly, leveraged by greater availability of pagers in U.S. retail channels and by continued strength in European and Asian markets. A pager the size of a credit card was introduced in the U.S. The EMBARC(SM) (Electronic Mail Broadcast to a Roaming Computer) advanced messaging service is currently available in more than 150 cities. It includes electronic mail capability under agreements with General Electric and IBM.
 In wireless data, the new InfoTAC(TM) radio packet modem was introduced. It can receive, store and respond to messages, and also can be connected to laptop, notebook or pen-based computers.
 General Systems Sector sales increased 42 percent to $932 million and orders rose 34 percent. Operating profits were higher.
 Motorola received orders for digital cellular infrastructure equipment in Japan and Norway. In Sweden, Comvik launched its GSM cellular service, which uses Motorola base stations. US West New Vector Group signed an agreement with Motorola Nortel Communications Co., covering the purchase of the world's first commercial CDMA digital cellular system, with equipment manufactured by Motorola and Northern Telecom. Motorola introduced the MicroTAC(R) Ultra Lite(TM) telephone. At 5.9 ounces, it is the world's lightest cellular phone. The computer group announced two new board-level products for a variety of industrial applications, and 33MHz versions of its Series 8000 systems and servers.
 Information Systems Group sales rose 10 percent to $154 million, while orders were down 5 percent. The group reported an operating profit compared with a loss a year ago.
 Codex announced the new 6500PLUS communications processor, a platform designed to simplify branch office data networking. At UDS, growth continued in both V.32 high-speed modems and digital products.
 The Government Electronics Group's sales declined 5 percent to $174 million, while orders were up 41 percent. Operating profits were lower. The group purchased a 25 percent interest in ACTC Technologies, Inc., a software engineering firm in Calgary, Alberta, to support software- related business in Canada.
 In the Automotive and Industrial Electronics Group, sales increased 26 percent and orders rose 7 percent. Operating profits were higher. The group announced the Traxar(TM) GPS Navigator, a handheld electronic navigation computer that provides boaters and hikers with position and navigation information. The first production units of a global positioning system core receiver specifically designed for embedded applications were shipped in the quarter. The group's results are included in the ''other products'' segment.
 As reported after the second quarter, Motorola intends to adopt, during the fourth quarter of 1992, Statement of Financial Accounting Standards (SFAS) 106, ''Accounting for Postretirement Benefits Other than Pensions.'' Management has reduced its estimate of the net plan obligation to a range of $170 million to $200 million. The estimate for the current annual net periodic expense of the plan has been reduced to $20 million to $25 million. The company intends immediate recognition of the entire net plan obligation when SFAS 106 is adopted.
 George Fisher, chairman and chief executive officer, said, ''The order growth in most of our businesses makes us optimistic about the future. About half of our sales are in international markets, and we are seeing especially robust results in the Asia Pacific region outside of Japan,'' he said.
 ''While worldwide macroeconomic signals remain mixed, the outlook for growth in the product markets we serve is brighter. The transition to digital wireless communications is benefiting our equipment businesses, and also is one of many factors that have increased the demand for semiconductors. Our customers are investing in the electronic tools that make them more productive,'' Fisher added.
 ''Financial performance continues to be a top priority. Quality improvement, cycle time reduction and customer satisfaction are central elements in our efforts to achieve profitable growth,'' Fisher said.
 NOTE: (a) -- PowerPC and its series are trademarks of International
 Business Machines Corporation.
 Dollars in millions except share figures
 Third Quarter Nine Months
 1992 1991 1992 1991
 Net sales $3,396 $2,745 $9,592 $8,302
 Manufacturing and
 other costs of sales 2,185 1,790 6,141 5,311
 Selling, general, and
 admin. expenses 730 576 2,061 1,827
 Depreciation 264 234 731 628
 Interest, net 35 28 109 93
 Total costs and expenses 3,214 2,628 9,042 7,859
 Earnings before
 income taxes 182 117 550 443
 Income taxes 53 24 148 115
 Net earnings 129 93 402 328
 Net earnings per share $ .97 $ .70 $ 3.02 $ 2.48
 Dividends per share .19 .19 .57 .57
 Net margin on sales (pct.) 3.8 3.4 4.2 3.9
 Return on average
 invested capital (a) (pct.) 8.7 7.6 -- --
 R&D expenditures 332 290 951 841
 Weighted average shares
 outstanding (in millions
 of shares) 133.6 132.0 133.2 131.9
 (a) Based on the performance of the four preceding quarters ending with October 3, 1992 and September 28, 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 and nine months are not necessarily indicative of the results to be expected for the full year.
 Condensed Consolidated Balance Sheets (Unaudited)
 (in millions)
 Assets Oct. 3, Dec. 31,
 1992 1991
 Cash and cash equivalents $ 583 $ 302
 Short-term investments, at cost
 (approximating market) 238 231
 Accounts receivable, less allowance for
 doubtful accounts (1992, $74; 1991, $79) 2,092 1,953
 Inventories 1,326 1,242
 Other current assets 856 759
 Total current assets 5,095 4,487
 Property, plant and equipment, less
 accumulated depreciation
 (1992, $3,762; 1991, $3,195) 4,365 4,194
 Other assets 763 694
 Total assets $10,223 $9,375
 Liabilities and Stockholders' Equity
 Notes payable and current portion of
 long-term debt $ 659 $ 852
 Accounts payable 911 897
 Accrued liabilities 1,562 1,314
 Total current liabilities 3,132 3,063
 Long-term debt 1,262 954
 Other liabilities 800 728
 Stockholders' equity 5,029 4,630
 Total liabilities, stockholders' equity $10,223 $9,375
 Information By Industry Segment (Unaudited)
 Information about the company's operations in different industry
 segments for the quarters and nine-month periods ended Oct. 3, 1992
 and Sept. 28, 1991 is summarized below:
 Net sales
 Dollars in millions for the third quarter
 1992 1991 Pct. Change
 Semiconductor products $1,152 $ 928 24
 Communications products 1,035 866 20
 General systems products 932 655 42
 Information systems products 154 140 10
 Government electronics products 174 182 (5)
 Other products 130 97 33
 Adjustments & eliminations (181) (123) (47)
 Industry segment totals $3,396 $2,745 24
 For The Nine Months
 1992 1991 Pct. Change
 Semiconductor products $3,299 $2,708 22
 Communications products 2,951 2,619 13
 General systems products 2,526 2,091 21
 Information systems products 459 432 6
 Government electronics products 460 512 (10)
 Other products 372 288 29
 Adjustments & eliminations (475) (348) (37)
 Industry segment totals $9,592 $8,302 16
 -0- 10/12/92
 /CONTACT: George Grimsrud, 708-576-2346, for Motorola Inc./
 (MOT) CO: Motorola Inc. ST: Illinois IN: CPR SU: ERN

TM -- NY065 -- 9026 10/12/92 19:02 EDT
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Date:Oct 12, 1992

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