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 SCHAUMBURG, Ill., Jan. 13 /PRNewswire/ -- Motorola, Inc. (NYSE: MOT) today reported record sales and earnings for the fourth quarter of 1992, as growth continued throughout the company's major communications and semiconductor businesses.
 Fourth-quarter sales were $3.71 billion, up 22 percent from $3.04 billion in the fourth quarter of 1991. Earnings were $181 million, or $1.35 per share, compared with $126 million, or 96 cents per share, a year ago. Net margin on sales was 4.9 percent versus 4.1 percent in 1991.
 Sales for the full year increased 17 percent to $13.3 billion from $11.3 billion in 1991. Before the cumulative (pre-1992) effect of the accounting changes discussed below, earnings were $576 million, or $4.32 per share, compared with $454 million, or $3.44 per share, a year earlier. Net margin on sales was 4.3 percent, before the effect of these accounting changes, compared with 4.0 percent a year ago.
 Motorola adopted Statement of Financial Accounting Standards (SFAS) 106,

Employers' Accounting for Postretirement Benefits Other than Pensions,'' during the fourth quarter. Recognition of the net plan obligation reduced earnings by $123 million, or 93 cents per share, to $453 million or $3.39 per share for the full year. The cumulative effect of the change was applied retroactively to the first quarter of 1992. The first three quarters have been restated for the current-year effect. Motorola also adopted SFAS 109,

Accounting for Income Taxes,'' which did not have a material effect on earnings.
 Earnings per share for the quarter and full year, including 1991 comparisons, do not reflect a 2-for-1 stock split, payable Jan. 15, 1993 to stockholders of record as of Dec. 15, 1992. After the stock split, earnings per share were 67 cents for the fourth quarter of 1992, 48 cents for the fourth quarter of 1991, $2.16 for the full year 1992, before the cumulative effect of the accounting changes, and $1.72 for all of 1991.
 Gary Tooker, president and chief operating officer, reviewed the following results of Motorola's major operations for the full year, compared with 1991:
 Sales in the Semiconductor Products Sector increased 22 percent to $4.48 billion. Orders rose 31 percent, as market position improved in all major regions. Operating profits were higher. Double-digit order growth was recorded in Asia-Pacific, North American and European regions. Orders were slightly lower in Japan. Most market segments grew rapidly, paced by personal computer/workstation and communications. The industrial and automotive segments also were strong. The consumer and computer segments grew more modestly, while the federal/military segment was lower. Orders from distributors were substantially higher. Among product categories, the highest order growth was in memories, microcontrollers and microprocessors, mixed signal, analog, MOS gate arrays and communications modules/components. The sector agreed to develop chips for the General Instrument-MIT digital high-definition TV system and to support the technology as the U.S. standard.
 In the communications segment businesses, composed of the Land Mobile Products Sector (LMPS) and the Paging and Wireless Data Group, sales rose 14 percent to $4.14 billion and orders rose 24 percent. Operating profits were higher for the year and flat in the fourth quarter, when LMPS recorded a charge for its continuing worldwide restructuring and consolidation program. Land Mobile Products orders for the year increased in all major regions of the world, paced by Asia. The growth was driven by demand for trunked and secure voice radio systems. A new generation of compact, lightweight portables was introduced during the year. Demand also increased for Radius(R) two way radios, sold through distributors and dealers.
 In Paging and Wireless Data, sales of paging products grew rapidly, especially in the Asia-Pacific region. New products included a pager the size of a credit card, a wireless data receiver for portable computers, a portable data terminal and a wireless data modem.
 Several wireless voice and data telephone businesses were realigned during the year. Beginning in 1993, financial reporting will reflect the realignment. The Telepoint Systems Division's results will be included with the General Systems Sector rather than the communications segment businesses, and the results of the former Wireless Enterprises will be included with the Paging and
Wireless Data Group rather than the other products'' segment. General Systems Sector sales advanced 26 percent to $3.59 billion and orders rose 38 percent. Operating profits were higher. Motorola's cellular infrastructure presence grew throughout the world, in both analog and digital systems. Narrowband AMPS technology was made an industry standard in the U.S. Orders for GSM digital systems were received in Europe and the Middle East. Sales continued to increase rapidly for subscriber equipment, including the world's lightest portable cellular phone. CT-2 (Telepoint) systems using Motorola equipment were launched in seven countries. The Computer Group introduced new board-level products for industrial applications and expanded its line of Series 8000 systems and servers.
 The Government Electronics Group's sales decreased 8 percent to $650 million and orders were down 2 percent. The group recorded an operating loss, compared with a profit a year ago. The loss was attributable to increased investments associated with the proposed Iridium(TM) global communications system, which are now included in the group's results. Prior to
reclassification, they were included in the other products'' segment.
 The group is expanding into non-military markets to augment its traditional defense businesses. It received a major contract from the Federal Aviation Administration to begin replacing transmitters and receivers at air traffic control centers throughout the U.S.
 Information Systems Group sales rose 7 percent to $625 million and orders were 7 percent higher. The group posted an operating profit, compared with a loss a year ago. Codex added to its lines of high speed modems and communications platforms for data networking. UDS posted higher orders for high-speed V.32 modems and began work on a line of products for digital networks.
 In the Automotive and Industrial Electronics Group, sales were up 24 percent and orders rose 26 percent. Operating profits were higher. The group shipped its 10 millionth electronic powertrain control to Ford Motor Co. during the year. It also introduced the Traxar(TM) GPS Navigator, a handheld receiver that provides outdoor enthusiasts with position and navigation information.
 The group's results are included in the other products'' segment. Investments in research and development totaled $1.31 billion in 1992, compared with $1.13 billion in 1991. Fixed asset expenditures increased to $1.39 billion from $1.32 billion in 1991.
 George Fisher, chairman and chief executive officer, said the worldwide
demand for Motorola's products and services continued to grow in the fourth quarter, and underscores our confidence for the future.
 While economic conditions remain uncertain in Europe and Japan, robust growth should continue in Asia-Pacific markets. We expect North America to continue the modest recovery from the 1990-91 recession,'' he said.
 We plan to build on our leadership position in some of the most exciting parts of the electronics industry. Our wireless communication and microelectronics technologies serve an increasingly mobile workforce and
society,'' Fisher said. Our focus on high quality, short cycle times and low costs is designed to achieve total customer satisfaction and improved financial performance,'' he added.
 Statements of Consolidated Earnings
 (In million of dollars, except share figures)
 Fourth Quarter Total Year
 1992 1991 1992 1991
 Net sales $3,711 $3,039 $13,303 $11,341
 Manufacturing and
 other costs of sales 2,367 1,934 8,508 7,245
 Selling, general, and
 admin. expenses 769 641 2,838 2,468
 Depreciation 269 258 1,000 886
 Interest, net 48 36 157 129
 Total costs and
 expenses 3,453 2,869 12,503 10,728
 Earnings before income
 taxes and accounting change 258 170 800 613
 Income taxes 77 44 224 159
 Net earnings before effect
 of accounting change $ 181 $ 126 $ 576 $ 454
 Effect of accounting
 change (A) -- -- 123 --
 Net earnings $ 181 $ 126 $ 453 $ 454
 Earnings per share before
 accounting change (B) $ 1.35 $ .96 $ 4.32 $ 3.44
 Effect of accounting
 change, per share -- -- .93 --
 Net earnings per share(B) $ 1.35 $ .96 $ 3.39 $ 3.44
 Weighted average shares
 outstanding (in millions
 of shares)(B) 134.4 132.1 133.5 131.9
 Dividends paid per share(B) $ .19 $ .19 $ .76 $ .76
 Net margin on sales(C) (pct.) 4.9 4.1 4.3 4.0
 Return on average
 invested capital(D) (pct.) 9.4 7.8 -- --
 (A) Cumulative effect of adoption of SFAS 106, Accounting for Postretirement Benefits Other than Pensions''.
 (B) Before 2-for-1 stock split payable Jan. 15, 1993.
 (C) Before cumulative effect of accounting change.
 (D) Based on the performance of the four preceding quarters ending with December 1992 and December 1991, before effect of accounting change.
 Condensed Consolidated Balance Sheets
 (in millions)
 ASSETS Dec. 31, Dec. 31,
 1992 1991
 Cash and cash equivalents $ 677 $ 302
 Short-term investments, at cost
 (approximating market) 253 231
 Accounts receivable, less allowance for
 doubtful accounts (1992, $69; 1991, $79) 2,036 1,953
 Inventories 1,321 1,242
 Other current assets 931 759
 Total current assets 5,218 4,487
 Property, plant and equipment, less accumulated
 depreciation (1992, $3,603; 1991, $3,195) 4,576 4,194
 Other assets 835 694
 Total assets $10,629 $9,375
 Liabilities and stockholders' equity:
 Notes payable and current portion of
 long-term debt $ 437 $ 852
 Accounts payable 1,127 897
 Accrued liabilities 1,771 1,314
 Total current liabilities 3,35 3,063
 Long-term debt 1,258 954
 Other liabilities 892 728
 Stockholders' equity 5,144 4,630
 Total liabilities and stockholders' equity $10,629 $9,375
 Information by Industry Segment
 (In millions)
 Information about the company's operations in different industry
 segments for the years ended December 31, 1992 and 1991 is
 summarized below. 1991 net sales and operating profits have been
 reclassified to reflect the realignment of various business units.
 Periods ended Dec. 31 1992 1991 Pct. Change
 Net sales:
 Semiconductor products $ 4,475 $ 3,679 22
 Communications products 4,138 3,629 14
 General systems products 3,586 2,846 26
 Government electronics products 650 704 (8)
 Information systems products 625 587 7
 Other products 509 394 29
 Adjustments & eliminations (680) (498) 37
 Industry total $13,303 $11,341 17
 Periods ended Dec. 31 pct. of pct. of
 1992 sales 1991 sales
 Operating profit:
 Semiconductor products $464 10 $356 10
 Communications products 237 6 191 5
 General systems products 457 13 372 13
 Government electronics products (7) (1) 33 5
 Information systems products 41 7 (13) (2)
 Other products (46) (9) (53) (14)
 Adjustments & eliminations (4) -- 4 --
 Industry total 1,142 9 890 8
 General corporate expense (185) (148)
 Interest expense, net (157) (129)
 Earnings before income taxes and
 effect of accounting change $800 6 $613 5
 -0- 1/13/93
 /CONTACT: George Grimsrud of Motorola, 708-576-2346/

CO: Motorola, Inc. ST: Illinois IN: TLS SU: ERN

TM -- NY072 -- 4635 01/13/93 18:21 EST
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