Re: [motmod] Motorola job cuts amid 4th quarter losses

[motmod]

Motorola will cut five percent of its workforce to reduce overhead. But the company said it does not plan to change its basic strategy.

Motorola’s mixed results for the fourth quarter and full year 2006—handset unit volumes, market share and revenue were up solidly, but net earnings, average selling prices and operating margins suffered—reflected both company-specific issues and handset-market conditions.

Raging sales of relatively low-cost, low-margin handsets in robust emerging markets brought volumes but not profits, while cooling—and competition—in more lucrative, mature markets stalled the company’s financial momentum. The Razr, continues to sell and will likely surpass the debut of the Razr’s anointed successor, the Krzr.

Motorola in the fourth quarter shipped of nearly 66 million units, up 47 percent from the year-ago quarter, which contributed to a 4.6 percent gain in global market share over fourth-quarter 2005. Revenue for the quarter hit $11.8 billion, up 17 percent from the year-ago quarter. Net earnings in the fourth quarter of $624 million, however, plummeted 48 percent from the year-ago quarter.

The picture for the full year followed a roughly similar pattern. Motorola’s handset shipments in 2006 reached more than 217 million units, up nearly 50 percent over the prior year, giving the company an estimated 22.2 percent global market share, a greater than 4 percent boost over 2005. Revenue reached nearly $43 billion for the year, a 22 percent jump over 2005. Net earnings for the year of $3.7 billion, however, represented a 20 percent drop from the prior year.

[Barry]

Hey mot mod, haven't seen you in a while.

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