SCHAUMBURG, Ill.-Motorola Inc. reported a smashing fourth quarter of $1.2 billion in net earnings and a record 44.7 million phones shipped. However, the results were slightly below analyst expectations, which prompted investors to send the company’s stock down more than 6 percent after the news.
Motorola’s profits were largely due to the company’s handset successes. Indeed, Motorola said it now commands a mobile-phone market share of 19 percent, which solidifies its position as the No. 2 worldwide handset vendor behind Nokia Corp.
“We are very pleased about our record fourth-quarter and full-year results,” said Ed Zander, the company’s chairman and chief executive officer. “Motorola continues to deliver compelling products and solutions to our customers, who are embracing our vision of seamless mobility.”
In Motorola’s handset business, the company recorded $6.5 billion in sales, up 30 percent compared with the year-ago quarter. The company reported operating earnings of $663 million, up from the company’s $532 million in the same quarter a year ago. Motorola said it retained its No. 1 market-share position in North America, and scored the No. 2 market-share position in Europe.
In its Networks business, Motorola posted sales down 4 percent to $1.5 billion. The division’s operating earnings were $225 million, compared with $275 million in the year-ago quarter.
For the first quarter, Motorola predicted between $9.3 billion and $9.5 billion in sales.
Motorola’s earnings illustrate the continued power of the worldwide handset market. Handset vendors Samsung Electronics Co. Ltd. and Sony Ericsson Mobile Communications L.P. also recently announced solid revenues.
