Spurred by strong growth in the international market, especially in China and Europe, Motorola Inc. reported record sales and earnings in the second quarter and first half of 1995, with sales up 26 percent and earnings up 31 percent for the quarter.
Second-quarter company sales rose 26 percent to $6.9 billion from $5.4 billion in the second quarter of 1994. In the first half of 1995, sales reached $12.9 billion, up 27 percent compared with sales of $10.1 billion a year ago.
Second-quarter earnings were $481 million, compared with $367 million a year earlier. Fully diluted earnings per share were 79 cents, compared with 63 cents in the second quarter of 1994. Earnings in the first six months were $853 million, compared with $665 million a year earlier. Fully diluted earnings per common and common equivalent share were $1.40, compared with $1.14 a year earlier.
Gary Tooker, Motorola’s vice chairman and chief executive officer said, “Growth has been rapid in the wireless communications arena, but global market penetration for devices such as pagers and cellular phones is still very low, at just above 1 percent each.”
The company reported rapid growth in orders for cellular telephones in Asia and Latin America while inventories in U.S. distribution channels returned to a normal range late in the second quarter.
Motorola’s international order growth included a $100 million contract for a WiLL wireless local loop system in Hungary. The fixed wireless system will serve 200,000 subscribers.
New Global System for Mobile communications systems were received in Austria, India, Nambia and Uganda. In India, Motorola will provide GSM systems for Delhi, Calcutta and for both cellular operators in Bombay.
The company said it also received more than $80 million in contracts to expand Personal Digital Communications systems in Japan.
Sales in the land mobile products sector rose 4 percent to $872 million, while orders declined 18 percent. The company attributed a decline in operating profits for this group to factors related to its integrated dispatch enhanced network (iDEN) technology, including the need for major specialized mobile radio customers to complete merger and financing transactions.
The company reported strong demand for portable and mobile two-way radios sold through dealers and for large private trunking systems in both the United States and Asia, including an $80 million award for a digital two-way communications system in Korea.
