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 SCHAUMBURG, Ill., July 12 /PRNewswire/ -- Motorola, Inc. (NYSE: MOT) today reported record sales and earnings in the second quarter and first half of 1993, as worldwide demand continued to grow for its semiconductors, wireless communications and advanced electronic products.
 Second-quarter sales rose 25 percent to $3.94 billion from $3.14 billion in the second quarter of 1992. In the first half, sales reached $7.56 billion, up from $6.20 billion a year ago.
 Second-quarter earnings were $224 million, or 83 cents per share, compared with $143 million, or 54 cents per share, in the second quarter of 1992. Earnings in the first six months were $428 million, or $1.58 per share, compared with $268 million, or $1.01 per share, a year earlier, before the 1992 cumulative effect of a change in accounting principle involving postretirement benefits other than pensions. Fully diluted earnings per share, in the second quarter, were 81 cents per common and common equivalent share, compared with 53 cents per common and common equivalent share, a year earlier. In the first half, fully diluted earnings per share were $1.53 per common and common equivalent share, compared with 99 cents per common and common equivalent share a year earlier.
 Net margin on sales was 5.7 percent in the second quarter, compared with 4.6 percent a year ago, while in the first half, it was 5.7 percent against 4.3 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 28 percent to $1.39 billion, the 18th consecutive quarter of growth. Orders rose 30 percent to an all-time high, and operating profits increased.
 Double-digit order growth was achieved in all major regions. Among market segments, orders increased most rapidly in communications, followed by industrial, personal computer/workstation, automotive and distribution. Most product categories recorded double-digit growth, led by digital signal processors, high-performance microprocessors and standard-cell products.
 Momentum grew for the PowerPC(a) RISC (reduced instruction set computer) microprocessor, developed jointly with IBM. Kaleida Labs, Scientific Atlanta and Motorola announced plans to develop PowerPC based interactive multimedia products for cable TV. Kaleida Labs is a joint venture of Apple Computer and IBM. Ford Motor Company said it will use PowerPC architecture for future-generation automotive powertrain controls. A high-performance 8-bit microcontroller family also was introduced. Tohoku Semiconductor Corp., a Motorola joint venture with Toshiba, said it will build a new facility in Sendai, Japan, to produce 16-megabit dynamic random access memory chips.
 General Systems Sector
 Sales advanced 40 percent to $1.18 billion. Orders rose 58 percent and operating profits were higher. Worldwide cellular orders grew rapidly for both infrastructure and subscriber equipment.
 The Cellular Subscriber Group announced plans to test market an integrated cellular telephone and pager. A third major U.S. cellular operator, PacTel Corp., chose CDMA (code division multiple access) digital technology using Motorola's SC(TM) 9600 base station system. PacTel plans to deploy CDMA technology in Los Angeles, the second largest U.S. cellular market.
 In Japan, Daini-Denden Co. selected a Motorola system for its Kansai Cellular Telephone 800 MHz digital cellular system. In Europe, Motorola received expansion orders in the UK, Germany and Portugal for GSM digital cellular equipment.
 The Computer Group announced availability of its highest performance single board computer based on Motorola's 88110 RISC microprocessor.
 Communications Segment
 In this segment, composed of the Land Mobile Products Sector (LMPS) and the Paging and Wireless Data Group (PWDG), sales rose 23 percent to $1.13 billion. Orders increased 22 percent, and operating profits were higher.
 In Land Mobile Products, orders were higher, reflecting higher demand for two-way trunking systems and new portables. Major orders for trunked systems were received in Canada and Taiwan. The first shared trunked systems were shipped to Poland and Russia.
 Two new portable two-way radios were introduced, one targeted at light industrial and commercial users, and another for recreational and leisure-time use, to be sold through retailers.
 In Paging and Wireless Data, orders for pagers again set records. Growth in Asia continued strong, especially in China. The group opened a facility in Fort Worth, Texas, to expand production. A new family of products to improve office productivity was announced. They are designed to enable people to stay in touch with telephones and personal computers through an on-site paging system.
 The group also announced technology for a new family of credit card sized intelligent wireless modems for hand-held and portable computing devices.
 Information Systems Group
 Sales declined 2 percent to $157 million, and orders were down 1 percent. Operating profits were lower. At Codex, higher sales in both branch networking products and transmission products were reinforced by its announcement of a networking architecture plan for customers to integrate their networks to handle multiple traffic types. Motorola UDS announced that it intends to produce a fax and data modem that enables wireless data exchange over circuit-switched cellular networks, when used with Motorola's MicroTAC(R) cellular telephones.
 Government and Systems Technology Group
 Sales rose 2 percent to $147 million. Orders were 4 percent lower, and the operating loss increased as a result of increased development costs for the Iridium(TM) global communications system. The group introduced a UHF transceiver with embedded encryption and a new line of encrypted telephone units.
 Sales rose 40 percent, orders were 39 percent higher, and operating profits were higher. Continuing growth in U.S. automotive and heavy vehicle sales contributed to the improvement. The group was selected by a major Japanese automotive manufacturer as its U.S. electronic component supplier for an electric vehicle project. The group's results, which are part of the "other products" segment, include Motorola Lighting, Inc., as well as two former Communications Segment businesses, Worldwide Energy Products Division and the Component Products Division.
 George Fisher, chairman and chief executive officer, said demand for Motorola's semiconductors, communications products and electronic equipment continues to increase throughout most of the world, even in regions such as Europe, where economic conditions remain sluggish.
 "Customers are investing in systems that make them more productive and enable them to access and communicate information at their convenience," Fisher said.
 "As these businesses continue to grow, we remain fully committed to our key initiatives on quality improvement, on-time delivery and total customer satisfaction," he said. "Continued improvement in financial results depends on our ability to meet and exceed the expectations of our customers."
 (a) -- PowerPC is a trademark of International Business Machines Corp.
 Statement of Consolidated Earnings (Unaudited)
 Dollars in millions except share figures
 Periods Ended Second Quarter(b) Six Months
 1993 1992 1993 1992
 Net sales $3,936 $3,141 $7,562 $6,196
 Manufacturing and
 other costs of sales 2,380 1,982 4,615 3,907
 Selling, general, and
 admin. expenses 905 681 1,702 1,386
 Depreciation expense 285 247 543 467
 Interest expense, net 36 38 72 74
 Total costs and expenses $3,606 $2,948 $6,932 $5,834
 Earnings before income
 taxes and accounting
 change(c) 330 193 630 362
 Income taxes provided
 on earnings 106 50 202 94
 Net earnings before
 effect of
 accounting change(c) $ 224 $ 143 $ 428 $ 268
 Effect of
 accounting change(c) 000 000 000 123
 Net earnings $ 224 $ 143 $ 428 $ 145
 Net earnings per common
 and common equivalent share
 Primary and Fully Diluted:
 Net earnings per
 share before
 accounting change(c) $ 0.81 $ 0.53 $ 1.53 $ 0.99
 Effect of accounting
 change, per share(c) 0.00 0.00 0.00 (0.44)
 Net earnings per share $ 0.81 $ 0.53 $ 1.53 $ 0.55
 Avg. common and common
 equivalent shares
 outstanding - primary
 (in millions of shares) 286.1 281.6 286.1 281.6
 Avg. common and common
 equivalent shares
 outstanding -
 fully diluted (in
 millions of shares) 286.7 281.6 286.7 281.6
 Dividends paid per share $ .11 $ .095 $ .22 $ .19
 Net margin on sales(d) 5.7% 4.6% 5.7% 4.3%
 Return on average
 invested capital(e) 11.8% 8.2% -- --
 R&D expenditures $ 385 $ 321 $ 729 $ 620
 NOTES: (b) Second quarter ended July 3, 1993 and July 4, 1992.
 (c) Cumulative effect of adoption of SFAS 106, "Accounting for Postretirement Benefits Other than Pensions."
 (d) 1992 amounts are before cumulative effect of accounting change.
 (e) Based on the performance of the four preceding quarters ending with July 3, 1993 and July 4, 1992 (1992 amounts are before cumulative effect of accounting change).
 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.
 Condensed Consolidated Balance Sheets (unaudited)
 (in millions)
 Assets July 3, Dec. 31,
 1993 1992
 Cash and cash equivalents $ 670 $ 677
 Short-term investments, at lower
 of cost or market 273 253
 Accounts receivable, less allowance for
 doubtful accounts (1993, $77; 1992, $69) 2,241 2,036
 Inventories 1,561 1,321
 Other current assets 958 931
 Total current assets 5,703 5,218
 Property, plant and equipment, less
 accumulated depreciation
 (1993, $4,112; 1992, $3,603) 4,873 4,576
 Other assets 1,057 835
 Total assets $11,633 $10,629
 Liabilities and Stockholders' Equity
 Notes payable and current portion of
 long-term debt $ 574 $ 437
 Accounts payable 1,037 1,127
 Accrued liabilities 2,174 1,771
 Total current liabilities 3,785 3,335
 Long-term debt 1,226 1,258
 Other liabilities 931 892
 Stockholders' equity 5,691 5,144
 Total liabilities, stockholders' equity $11,633 $10,629
 Information by Industry Segment (Unaudited)
 Dollars in Millions
 Information about the company's operations in different industry segments for the quarters and six-month periods ended July 3, 1993 and July 4, 1992 is summarized below:
 Net sales
 for the second quarter
 1993 1992(a) Pct. Change
 Semiconductor products $1,388 $1,081 28
 General systems products 1,184 845 40
 Communications products 1,125 912 23
 Information systems products 157 160 (2)
 Government and systems
 technology products 147 144 2
 Other products 275 197 40
 Adjustments & eliminations (340) (198) (72)
 Industry segment totals $3,936 $3,141 25
 For The Six Months
 1993 1992(a) Pct. Change
 Semiconductor products $2,670 $2,147 24
 General systems products 2,243 1,642 37
 Communications products 2,156 1,801 20
 Information systems products 307 305 1
 Government and systems
 technology products 272 286 (5)
 Other products 532 386 38
 Adjustments & eliminations (618) (371) (66)
 Industry segment totals $7,562 $6,196 22
 NOTE: (a) Information for 1992 has been reclassified to reflect the realignment of various business units.
 -0- 7/12/93
 /CONTACT: George Grimsrud of Motorola, 708-576-2346/

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

TM -- NY089 -- 0654 07/12/93 18:39 EDT
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Date:Jul 12, 1993

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