Experiencing “significant weakness” in first-quarter orders, Schuamburg, IL-based Motorola, Inc. (NYSE:MOT) say that it doesn’t expect to achieve the first-quarter 2001 sales guidance of $8.8 billion or the earnings guidance of 12 cents per share given on Jan. 11, 2001.
Citing the sharp economic slowdown in the U.S. and inventory corrections taking
place broadly in technology markets worldwide, the company stated today if the present conditions continue, it will incur a first-quarter operating loss.
Motorola is adusting its cost structure to the present conditions and will take additional cost
reduction steps in the future, as stated in a news release. The company has conducted a round of layoffs to reduce costs.
In the first quarter of 2000, sales were $8.8 billion and earnings were 20 cents per share.
Motorola will have a recording of the an analyst conference call held today at www.motorola.com/investor.