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MOTOROLA REPORTS HIGHER SECOND-QUARTER SALES AND EARNINGS

 MOTOROLA REPORTS HIGHER SECOND-QUARTER SALES AND EARNINGS
 SCHAUMBURG, Ill., July 14 /PRNewswire/ -- Motorola Inc. today reported higher sales and earnings in the second quarter and first half of 1992.
 Second-quarter sales rose 12 percent to $3.14 billion from $2.81 billion in the second quarter of 1991. In the first half, sales reached $6.20 billion, up from $5.56 billion a year ago.
 Second-quarter earnings were $146 million, or $1.09 per share, compared with $119 million, or 90 cents per share, in the second quarter of 1991. Earnings in the first six months were $273 million, or $2.05 per share, compared with $235 million, or $1.78 per share, a year earlier.
 Net margin on sales was 4.6 percent in the second quarter, compared with 4.2 percent a year ago, while in the first half, it was 4.4 percent against 4.2 percent in the year-earlier period.
 Gary Tooker, president and chief operating officer, reviewed the following second-quarter results of Motorola's major operations, compared with the year-earlier quarter:
 -- Semiconductor Products Sector sales rose 21 percent to $1.08 billion, the 14th consecutive quarter of growth. Orders rose 28 percent and operating profits increased.
 -- For semiconductors, all regions experienced strong order growth, except Japan, where orders declined. Among market segments, orders increased most rapidly in communications, distribution, personal computer/workstation and consumer. Greatest strength among product groups was seen in customer-specified microcontrollers, memories, MOS digital-analog and bipolar analog circuits, communications and signal devices, and gate arrays.
 -- The alliance among Apple, IBM and Motorola to develop IBM's PowerPCI family of RISC processors moved forward and a joint design center was dedicated in Austin, Texas.
 -- Motorola was named "Best Overall European Semiconductor Vendor of the Year" by Dataquest. The award is based on surveys of more than 200 customers on factors such as delivery, quality, price, technical support and service.
 -- In the Communications segment businesses, composed of the Land Mobile Products Sector and the Paging and Telepoint Systems Group, sales rose 11 percent to $972 million. Orders increased 23 percent. Operating profits were higher.
 -- In Land Mobile Products, orders were higher, led by Asia and North America. The first SmartZoneI private trunking systems were shipped in the U.S. and Hong Kong. The technology automatically switches a user's radio from one site to the next, enabling a user to roam throughout a wide communications area.
 -- Motorola received a license for its 100th Japan Specialized Mobile Radio (JSMR) system. The 100,000th JSMR subscriber unit was put into service during the quarter.
 -- In Paging and Telepoint Systems, international paging shipments set a record, with China, Korea and the United Kingdom showing impressive growth. Large paging system orders were received from China, Taiwan and Portugal.
 -- In the U.S., the EMBARC(SM) advanced messaging service began nationwide service in 112 cities in June. It provides wireless electronic mail delivery to portable computers.
 -- CT2 Telepoint systems continued to grow rapidly in Singapore and Hong Kong. A CT2 system using Motorola equipment was launched in The Netherlands.
 -- General Systems Sector sales advanced 11 percent to $821 million. Orders rose 29 percent and operating profits were flat.
 -- Orders for cellular subscriber equipment continued to show strong growth worldwide. In Europe, Motorola achieved interim type approval testing of its GSM mobile telephones, and shipments began in the quarter.
 -- In the U.S., Bell Atlantic Metro Mobile announced plans to install Motorola's Narrow-band Advanced Mobile Phone Service (NAMPS) in its Southwest cellular systems, beginning in Phoenix. Centel Cellular Co. put the first NAMPS system into commercial service in Las Vegas.
 -- Motorola was awarded a contract to supply GSM digital cellular radio-frequency equipment in Portugal. Other GSM contracts have been received in the UK, Germany and Norway this year.
 -- Motorola and Northern Telecom signed an agreement forming Motorola Nortel Communications Co., a previously announced joint venture to sell and service cellular telephone networks throughout North, Central, and South America, and the Caribbean.
 -- The Computer Group in the General Systems Sector introduced three real-time development platforms for industrial automation applications.
 -- Information Systems Group sales rose 15 percent to $160 million, while orders were up 20 percent. The group recorded an operating profit, versus an operating loss a year ago.
 -- Codex introduced a series of high-speed dial modems incorporating a technology being considered as a V.fast standard. Sales of new digital products from UDS continued to increase.
 -- The Government Electronics Group's sales declined 15 percent to $144 million. Orders were 38 percent higher, and operating profits were flat. The group announced a new Global Positioning System (GPS) receiver processor for use in satellites.
 -- In the Automotive and Industrial Electronics Group, sales rose 8 percent and orders were 30 percent higher. Operating profits were lower, in part reflecting an increase in engineering costs to support new products. In addition to automotive control products, the group announced a handheld electronic navigational device planned to be available next year. The group's results are included in the "other products" segment.
 Motorola intends to adopt, during the fourth quarter of 1992, Statement of Financial Accounting Standards (SFAS) 106, "Accounting for Postretirement Benefits Other than Pensions." As stated in the 1991 Annual Report, management believes the net plan obligation would range from $190 million to $300 million. The company intends immediate recognition of the entire net plan obligation when SFAS 106 is adopted.
 Motorola also intends to adopt, during the fourth quarter of 1992, SFAS 109, "Accounting for Income Taxes." Management believes that adoption of SFAS 109 will not have a significant impact on the financial results.
 In accordance with the Financial Accounting Standards Board, all 1992 quarterly financial results will be restated to reflect the adoption of both SFAS 106 and SFAS 109.
 George Fisher, chairman and chief executive officer, said, ''We are pleased by the continuing improvement in our semiconductor, paging and cellular subscriber businesses. Order growth in all of our major wireless communications businesses indicates the potential of our exciting new technologies, especially in international markets,'' he said.
 ''While sales and earnings continue to grow, we must still improve our financial performance,'' Fisher added. ''Reaching our goals for quality improvement, customer satisfaction and cycle time reduction is a top priority. We believe that by focusing on these initiatives, we will be able to serve growing markets more effectively and profitably.''
 Motorola, Inc. and Consolidated Subsidiaries
 Statement of Consolidated Earnings (Unaudited)
 (Dollars in millions except share figures)
 Second Quarter Six Months
 '92 '91 '92 '91
 Net sales $3,141 $2,814 $6,196 $5,557
 Manufacturing and
 other costs of sales 2,009 1,789 3,956 3,521
 Selling, general, and
 admin. expenses 651 625 1,331 1,251
 Depreciation 247 203 467 394
 Interest, net 38 32 74 65
 Total costs and expenses 2,945 2,649 5,828 5,231
 Earnings before
 income taxes 196 165 368 326
 Income taxes 50 46 95 91
 Net earnings 146 119 273 235
 Net earnings per share $ 1.09 $ .90 $ 2.05 $ 1.78
 Dividends per share .19 .19 .38 .38
 Return on average
 invested capital(A) 8.2 7.9 -- --
 (percent)
 R&D expenditures 307 260 595 516
 Weighted average shares
 outstanding (in millions
 of shares) 133.3 131.8 133.0 131.8
 (A) Based on the performance of the four preceding quarters ending
 with July 4, 1992 and June 29, 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 half are
 not necessarily indicative of the results to be expected for the
 full year.
 Motorola, Inc. and Consolidated Subsidiaries
 Condensed Consolidated Balance Sheets (unaudited)
 (in millions)
 ASSETS July 4, 1992 Dec. 31, 1991
 Cash and cash equivalents $ 563 $ 302
 Short-term investments, at cost
 (approximating market) 258 231
 Accounts receivable, less allowance for
 doubtful accounts (1992, $80; 1991, $79) 1,970 1,953
 Inventories 1,309 1,242
 Other current assets 799 759
 Total current assets 4,899 4,487
 Property, plant and equipment, less
 accumulated depreciation
 (1992, $3,549; 1991, $3,195) 4,265 4,194
 Other assets 722 694
 Total assets $9,886 $9,375
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Notes payable and current portion of
 long-term debt $ 659 $ 852
 Accounts payable 842 897
 Accrued liabilities 1,415 1,314
 Total current liabilities 2,916 3,063
 Long-term debt 1,263 954
 Other liabilities 801 728
 Stockholders' equity 4,906 4,630
 Total liabilities, stockholders' equity $9,886 $9,375
 Motorola, Inc.
 Information by Industry Segment (unaudited)
 Information about the company's operations in different
 industry segments for the quarters and six-month periods ended July
 4, 1992 and June 29, 1991 is summarized below:
 Net sales
 Dollars in millions for the second quarter
 1992 1991 Chg (percent)
 Semiconductor products $1,081 $ 897 21
 Communications products 972 874 11
 General systems products 821 738 11
 Information systems products 160 139 15
 Government electronics products 144 170 (15)
 Other products 121 108 12
 Adjustments & eliminations (158) (112) (41)
 Industry segment totals $3,141 $2,814 12
 for the six months
 1992 1991 Chg (percent)
 Semiconductor products $2,147 $1,780 21
 Communications products 1,916 1,753 9
 General systems products 1,594 1,436 11
 Information systems products 305 292 4
 Government electronics products 286 330 (13)
 Other products 242 191 27
 Adjustments & eliminations (294) (225) (31)
 Industry segment totals $6,196 $5,557 12
 -0- 7/14/92
 /CONTACT: George Grimsrud of Motorola, 708-576-2346/
 (MOT) CO: Motorola Inc. ST: Illinois IN: CPR SU: ERN


TM -- NY083 -- 9314 07/14/92 18:03 EDT
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