Motorola Reports Fourth-Quarter, Full-Year Sales and Earnings
WEDNESDAY, JANUARY 10, 2001 5:18 PM
- BusinessWire
SCHAUMBURG, Ill., Jan 10, 2001 (BUSINESS:MOT) today reported sales of $10.1 billion in the fourth quarter of 2000, an increase of 11 percent from $9.1 billion a year earlier. Excluding special items, earnings were $335 million, or 15 cents per share, down 41 percent from $564 million, or 25 cents per share a year ago.
Including special items, earnings were $135 million, or 6 cents per share, compared with $323 million, or 15 cents per share a year ago. The 1999 figures are restated to reflect the merger with General Instrument Corporation and the June 1, 2000 3-for-1 stock split.
Robert L. Growney, president and chief operating officer, said, "Despite the higher sales, increases in manufacturing costs and operating expenses caused operating profits to decline. We have taken steps to reduce the cost structure in our manufacturing activities and to tightly control operating expenses. Further steps will be taken in 2001 to return the corporation to generating growth in its earnings."
In the fourth quarter of 2000, Motorola reported special items resulting in a net charge of $68 million pre-tax, or 9 cents per share after-tax. Charges were incurred primarily relating to the discontinuation of older wireless telephone products as part of an ongoing product portfolio simplification strategy and the downsizing of various manufacturing operations. The charges were largely offset by gains from the sale of investments during the quarter. In the fourth quarter of 1999, the company reported special items resulting in a net charge of $351 million pre-tax, or 10 cents per share after-tax.
For the full year, sales from ongoing operations rose 17 percent to $37.6 billion from $32.0 billion in 1999. Including sales from businesses sold in 1999, sales increased 14 percent from $33.1 billion a year ago. Full-year earnings from ongoing operations, excluding special items, were $1.9 billion, or 84 cents per share, compared with $1.4 billion, or 63 cents per share a year earlier. Including the earnings from businesses sold in 1999, full-year earnings were up 29 percent compared with $1.5 billion, or 67 cents per share a year earlier.
Results for Ongoing Operations, Excluding Special Items
Excluding special items, a comparison of results from ongoing operations is as follows:
(Dollars in millions, except per-share amounts)
Fourth Quarter Full Year
-------------- ---------
2000 1999 2000 1999
---- ---- ---- ----
Sales $10,064 $9,055 $37,564 $32,022
Net Earnings $335 $564 $1,897 $1,378
Earnings Per Share $.15 $.25 $.84 $.63
Net Margin on Sales 3.3% 6.2% 5.1% 4.3%
§ Total Consolidated Results, Including Special Items
§ Including special items, a comparison of results from operations
is as follows:
(Dollars in millions, except per-share amounts)
Fourth Quarter Full Year
-------------- ---------
2000 1999 2000 1999
---- ---- ---- ----
Sales $10,064 $9,086 $37,580 $33,075
Net Earnings $135 $323 $1,318 $891
Earnings Per Share $.06 $.15 $.58 $.41
Net Margin on Sales 1.3% 3.6% 3.5% 2.7%
The impact of business sales and special items on segment results is shown in the segment information tables at the end of this press release.
Growney reviewed the following results of major operations for the fourth quarter of 2000 compared with the fourth quarter of 1999. This review is based on ongoing operations, excluding special items, for each segment.
Personal Communications Segment
Segment sales rose 1 percent to $3.5 billion. Orders were $2.9 billion, down 20 percent. Operating profits declined to $76 million, compared with $242 million a year ago, due to increased manufacturing costs.
In the Americas, orders for wireless telephones increased, while sales were significantly higher. In Europe, orders were down very significantly, while sales were down significantly. In Asia, orders and sales increased.
Motorola has accelerated actions to improve financial results in this segment. In the previous two quarters, Motorola has taken significant steps to realign the segment to respond to changes in the market and to improve the existing cost structure. The focus has been on product simplification and restructuring of the supply chain.
In Europe, Motorola began shipping the V.Series(TM) V100 personal communicator, which combines a Global System for Mobile Communications (GSM) phone with a full keyboard, Internet browser, address book, games and voice dialing. In the U.S. the Timeport(TM) P7389i wireless phone was introduced. This GSM tri-band phone features General Packet Radio Services (GPRS) technology to provide a constant link to the mobile Internet. The V.Series model 60c phone also was unveiled. It features messaging, external caller ID, voice activation and a Wireless Application Protocol microbrowser.
Sega Corp. and Motorola signed an agreement that calls for Sega to develop games for Motorola wireless devices.
Global Telecom Solutions Segment
Segment sales increased 19 percent to $2.1 billion and orders rose 5 percent to $1.8 billion. Operating profits declined to $193 million, compared with $245 million a year ago, due to increased research and development and selling expenses.
In the Americas and in Europe, orders were lower, while sales increased. In Asia, orders were significantly higher and sales increased.
Motorola announced several agreements to supply third-generation (3G) networks capable of providing advanced multimedia services. These include Universal Mobile Telecommunications Systems (UMTS) for Telefonica Moviles in Spain and Telsim in Turkey, as well as cdma2000 1x network upgrades with KDDI in Japan, Sprint PCS in 13 U.S. markets and ALLTEL in Louisiana and Arizona.
In China, Motorola received more than $130 million in GSM network expansion contracts for systems in Sichuan, Fujian and Zhejiang provinces. China Mobile Communications Corp. also awarded Motorola a GPRS network supply contract for Beijing, Tianjin, Chengdu and Hangzhou.
Commercial, Government and Industrial Systems Segment
Segment sales increased 8 percent to $1.3 billion and orders were $1.4 billion, up 14 percent from a year ago. Operating profits increased to $185 million from $182 million a year ago.
In the Americas, orders were up significantly and sales were higher. In Europe, orders were lower and sales were higher. In Asia, orders and sales were higher.
The State of Illinois selected Motorola to design, install and operate a statewide ASTRO(R) digital radio communications system. Large ASTRO equipment awards received during the quarter included contracts in excess of $60 million each from the City of Austin, Texas and the Washington, D.C. Metro Area Transit Authority.
The sector was awarded contracts to provide systems based on the TETRA (TErrestrial Trunked RAdio) digital standard in Aachen, Germany, and for the Singapore Land Transit Authority. Motorola demonstrated the industry's first TETRA integrated voice and data system using packet data and expanded its TETRA portfolio with the addition of an 800-megahertz (MHz) solution. The sector received contracts to provide 800 MHz TETRA systems for the Korea National Police, Guangzhou Metro in China, and the Kowloon-Canton Railway Corporation's West Rail in Hong Kong.
Broadband Communications Segment
Segment sales increased 52 percent to $1.1 billion and orders rose 49 percent to $1.1 billion from a year ago. Operating profits increased to $156 million from $95 million a year ago.
Digital Network Systems had very significant increases in orders and sales. Internet Protocol Network Systems had higher orders and a significant increase in sales. Transmission Network Systems had lower orders and lower sales. Satellite Broadcast Network Systems had a very significant increase in orders and sales.
Motorola announced several new international digital technology wins. United Pan-Europe Communications N.V. selected Motorola's MediaCipher(TM) conditional access system for all of its broadband systems in Europe. Telia Stofa launched Motorola's digital cable platform in Denmark. Additionally, in Latin America, Motorola announced the launch of a new interactive digital system for SuperCable in Colombia.
Motorola introduced its Switched IP Access solution, enabling faster IP telephony deployments for operators with a Class 5 Switch.
Under a strategic agreement with Comcast Cable Communications, Inc., Motorola will provide additional cable modems.
DigiCipher(R)II encoders and access control systems were selected by ESPN to supplement its analog program distribution network with digital transmission systems.
Semiconductor Products Segment
Segment sales increased 7 percent to $1.9 billion and orders declined 19 percent to $1.6 billion. Operating profits rose to $158 million from $80 million a year ago.
Orders were down in all regions. Among major markets, orders were significantly higher in imaging/entertainment, higher in networking/computing, lower in transportation, and significantly lower in wireless and standard products.
Sales by region increased in the Americas, Asia and Europe. Sales were significantly higher in networking/computing, higher in imaging/entertainment, transportation and standard products, and lower for wireless.
To expand its embedded processor portfolio, Motorola signed a licensing agreement with ARM Ltd. and will offer an array of ARM-based solutions. The initial focus will be wireless applications, including enhancement of the DragonBall(TM) family of processors for the handheld computer and personal digital assistant market.
In home entertainment, Blockbuster Inc. and Enron Broadband Services announced in January 2001 that they are using Motorola's Streamaster(TM) residential gateway platform based on digital subscriber line (DSL) technology.
Product announcements included the industry's highest performance digital signal processor. Based on StarCore(R) technology, it is for use in applications such as packet telephony media gateways, multi-channel modem banks and 3G wireless systems.
Integrated Electronic Systems Segment
Segment sales increased 9 percent to $764 million and orders rose 4 percent to $708 million. Operating profits increased to $69 million from $64 million a year ago.
Sales and orders in the Telematics Communications Group (TCG) increased very significantly. The group announced that the latest Timeport(TM) multiband phone system is available as an integrated option on all 2001 Jaguar vehicles. Under an agreement with Mercedes Benz North America, TCG is to supply the Mercedes TeleAid Telematics system on all models beginning in 2001. The agreement is estimated at more than $225 million over four years.
The Motorola Computer Group (MCG) had significantly higher sales and orders. MCG signed four new contracts totaling $116 million over the next five years to supply high-availability platforms to telecommunications manufacturers, including a significant win in China. The group also received design wins for embedded electronics in the industrial automation, imaging and military market segments.
Automotive and Industrial Electronics Group (AIEG) sales were lower and orders were significantly lower, primarily due to softening vehicle sales in the U.S. Under agreements with Faurecia and Zytec in Europe, AIEG will develop advanced electronic control systems and pressure sensors.
Energy Systems Group sales and orders were lower.
Review and Outlook
Christopher B. Galvin, chairman and chief executive officer, said, "We are making the adjustments that are necessary in a period of slower overall economic growth. Having anticipated a softening in economic activity, we began implementing cost reductions in the third and fourth quarters of 2000, and will continue with additional actions to be taken in the first quarter of 2001. These actions have been designed to adjust our costs to softening global market conditions and, as the market recovers, to restore the trend of improved profitability that we had achieved over the last two years," he said.
"Despite a slowdown in the growth of overall consumer spending, we expect demand for wireless, broadband, and workgroup equipment and services to grow as individuals continue to be attracted to broadband's triple play of voice, data, and multimedia and the convenience of portable communication products. Growth in embedded devices has slowed in most segments, but the demand for embedded systems that make our customers' products simpler, safer, smarter and more synchronized remains strong in the long term," Galvin said.
"Business customers are assessing the recent changes in global debt markets and capital availability as they focus their near-term capital investments. The robustness of business activity in this economic cycle for companies like Motorola over the next few quarters will be largely determined by the level of success of further change in fiscal, tax and regulatory policy worldwide. We are still in the early phase of this change in economic cycle. Therefore, its pace and direction is not firmly predictable. Motorola has managed successfully through economic cycles in every decade since its founding in 1928. We remain more enthusiastic than ever about the benefits to society and our shareholders of wireless, broadband, Internet and embedded solutions tailored uniquely for the person, workteam, home and automobile, powered by embedded systems," he said.
Business Risks:
Statements about future cost reduction measures and the impact thereof, the commercial availability of new products, the completion of pending transactions and in "Review and Outlook" are forward-looking statements based on current expectations and involve risks and uncertainties. Motorola wishes to caution the reader that the factors below and those on pages F-25 through F-28 of the appendix to Motorola's Proxy Statement for the 2000 annual meeting of stockholders and in its other SEC filings could cause Motorola's actual results to differ materially from those stated in the forward-looking statements. These factors include: (i) the impact of foreign currency fluctuations on the company; (ii) the impact that lower-than-anticipated demand worldwide for cellular telephones will have on the company's performance; (iii) demand for products, including products related to new technologies such as Internet-ready phones; (iv) the company's ability to achieve improved profitability in its digital wireless telephone business, especially as it competes in the lower-tier wireless telephone market; (v) the company's success in the emerging 3G market; (vi) the demand for vendor financing and the company's ability to provide that financing in order to remain competitive; (vii) improvement in the worldwide semiconductor industry and the company's participation in that improvement; (viii) unexpected liabilities or expenses, including unfavorable outcomes to any currently pending or future litigation, including any relating to the Iridium project; (ix) pricing pressures and demand for the company's products, especially if economic conditions worsen in the company's markets; (x) the success of alliances and agreements with other companies to develop new products and services; (xi) product and technology development and commercialization risks, including for newer digital products; (xii) difficulties in integrating the operations of newly-acquired businesses and achieving strategic objectives, cost savings and other benefits; (xiii) the success of the company's ongoing cost-reduction efforts; and (xiv) the success of the company's ongoing product portfolio simplification efforts.
MOTOROLA, the Stylized M Logo and all other trademarks indicated as such herein are trademarks of Motorola, Inc. (R)Reg. U.S. Pat. & Tm. Off.
Motorola, Inc. and Subsidiaries
Consolidated Statements of Earnings
(In millions, except per share amounts)
For the Quarter Ended December 31, 2000
--------------------------------------------------
Excl Ongoing
Impact of Excl Operations
Special Excl Impact Excl
Total Items Special of Exited Special
Motorola Inc/(Exp) Items Businesses Items
--------- ------------------- -------------------
Net sales $ 10,064 $ - $ 10,064 $ - $ 10,064
Costs and expenses
Manufacturing and
other costs of
sales 6,790 (388) 6,402 - 6,402
Selling, general
and administrative
expenses 1,010 320 1,330 - 1,330
Research and
development
expenditures 1,144 1,144 - 1,144
Depreciation expense 634 634 - 634
Interest expense,
net 73 73 - 73
--------- ------------------- -------------------
Total costs and
expenses 9,651 (68) 9,583 - 9,583
--------- ------------------- -------------------
Earnings before
income taxes 413 68 481 - 481
Income tax provision 278 (132) 146 - 146
--------- ------------------- -------------------
Net earnings $ 135 $ 200 $ 335 $ - $ 335
========= =================== ===================
Net earnings per common share
-----------------------------
Basic $ 0.06 $ 0.09 $ 0.15 $ - $ 0.15
Diluted $ 0.06 $ 0.09 $ 0.15 $ - $ 0.15
Weighted average common shares outstanding
------------------------------------------
Basic 2,188.7 2,188.7 2,188.7 2,188.7 2,188.7
Diluted 2,240.6 2,240.6 2,240.6 2,240.6 2,240.6
Dividends paid per
share $ 0.04 $ 0.04 $ 0.04
Net margin on sales 1.3% 3.3% 3.3%
For the Quarter Ended December 31, 1999
--------------------------------------------------
Excl Ongoing
Impact of Excl Operations
Special Excl Impact Excl
Total Items Special of Exited Special
Motorola Inc/(Exp) Items Businesses Items
--------- ------------------- -------------------
Net sales $ 9,086 $ - $ 9,086 $ (31) $ 9,055
Costs and expenses
Manufacturing and
other costs of
sales 6,019 (497) 5,522 (27) 5,495
Selling, general
and administrative
expenses 1,220 (80) 1,140 (3) 1,137
Restructuring and
other charges (226) 226 - -
Research and
development
expenditures 1,032 1,032 1,032
Depreciation expense 563 563 563
Interest expense,
net 20 20 - 20
--------- ------------------- -------------------
Total costs and
expenses 8,628 (351) 8,277 (30) 8,247
--------- ------------------- -------------------
Earnings before
income taxes 458 351 809 (1) 808
Income tax provision 135 109 244 (0) 244
--------- ------------------- -------------------
Net earnings $ 323 $ 242 $ 565 $ (1) $ 564
========= =================== ===================
Net earnings per common share
-----------------------------
Basic $ 0.15 $ 0.11 $ 0.26 $ - $ 0.26
Diluted $ 0.15 $ 0.10 $ 0.25 $ - $ 0.25
Weighted average common shares outstanding
------------------------------------------
Basic 2,132.6 2,132.6 2,132.6 2,132.6 2,132.6
Diluted 2,224.5 2,224.5 2,224.5 2,224.5 2,224.5
Dividends paid per
share (1) $ 0.04 $ 0.04 $ 0.04
Net margin on sales 3.6% 6.2% 6.2%
(1) Dividends on Motorola shares outstanding prior to the General
Instrument merger.
Motorola, Inc. and Subsidiaries
Consolidated Statements of Earnings
(In millions, except per share amounts)
For the Year Ended December 31, 2000
--------------------------------------------------
Excl Ongoing
Impact of Excl Operations
Special Excl Impact Excl
Total Items Special of Exited Special
Motorola Inc/(Exp) Items Businesses Items
--------- ------------------- -------------------
Net sales $ 37,580 $ - $ 37,580 $ (16) $ 37,564
Costs and expenses
Manufacturing and
other costs of
sales 23,628 (887) 22,741 (16) 22,725
Selling, general
and administrative
expenses 4,684 406 5,090 - 5,090
Research and
development
expenditures 4,437 - 4,437 - 4,437
Depreciation expense 2,352 - 2,352 - 2,352
Interest expense,
net 248 - 248 248
--------- ------------------- -------------------
Total costs and
expenses 35,349 (481) 34,868 (16) 34,852
--------- ------------------- -------------------
Earnings before
income taxes 2,231 481 2,712 - 2,712
Income tax provision 913 (98) 815 - 815
--------- ------------------- -------------------
Net earnings $ 1,318 $ 579 $ 1,897 $ - $ 1,897
========= =================== ===================
Net earnings per common share
-----------------------------
Basic $ 0.61 $ 0.26 $ 0.87 $ - $ 0.87
Diluted $ 0.58 $ 0.26 $ 0.84 $ - $ 0.84
Weighted average common shares outstanding
------------------------------------------
Basic 2,170.1 2,170.1 2,170.1 2,170.1 2,170.1
Diluted 2,256.6 2,256.6 2,256.6 2,256.6 2,256.6
Dividends paid per
share $ 0.16 $ 0.16 $ 0.16
Net margin on sales 3.5% 5.0% 5.1%
Return on average
invested capital (1) 6.3%
For the Year Ended December 31, 1999
--------------------------------------------------
Excl Ongoing
Impact of Excl Operations
Special Excl Impact Excl
Total Items Special of Exited Special
Motorola Inc/(Exp) Items Businesses Items
--------- ------------------- -------------------
Net sales $ 33,075 $ - $ 33,075 $ (1,053) $ 32,022
Costs and expenses
Manufacturing and
other costs of
sales 20,631 (820) $ 19,811 (751) 19,060
Selling, general
and administrative
expenses 5,446 (238) $ 5,208 (148) 5,060
Restructuring and
other charges (226) 226 $ - - -
Research and
development
expenditures 3,560 - $ 3,560 (23) 3,537
Depreciation expense 2,243 - $ 2,243 (3) 2,240
Interest expense,
net 138 - $ 138 (4) 134
--------- ------------------- -------------------
Total costs and
expenses 31,792 (832) 30,960 (929) 30,031
--------- ------------------- -------------------
Earnings before
income taxes 1,283 832 2,115 (124) 1,991
Income tax provision 392 258 $ 650 (37) 613
--------- ------------------- -------------------
Net earnings $ 891 $ 574 $ 1,465 $ (87) $ 1,378
========= =================== ===================
Net earnings per common share
-----------------------------
Basic $ 0.42 $ 0.27 $ 0.69 $ (0.04) $ 0.65
Diluted $ 0.41 $ 0.26 $ 0.67 $ (0.04) $ 0.63
Weighted average common shares outstanding
------------------------------------------
Basic 2,119.5 2,119.5 2,119.5 2,119.5 2,119.5
Diluted 2,202.0 2,202.0 2,202.0 2,202.0 2,202.0
Dividends paid per
share (2) $ 0.16 $ 0.16 $ 0.16
Net margin on sales 2.7% 4.4% 4.3%
Return on average
invested capital (1) 5.3%
(1) Based on the performance of the four preceding quarters ending
with December 31, 2000 and December 31, 1999.
(2) Dividends on Motorola shares outstanding prior to the General
Instrument merger.
Motorola, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions)
ASSETS Dec. 31, Dec. 31,
2000 1999
----------- -----------
Cash and cash equivalents $ 3,301 $ 3,537
Short-term investments 354 699
Accounts receivable, net 7,092 5,627
Inventories, net 5,242 3,707
Deferred income taxes 2,294 3,247
Other current assets 1,602 768
----------- -----------
Total current assets 19,885 17,585
----------- -----------
Property, plant and equipment, net 11,157 9,591
Investments 5,926 9,039
Other assets 5,375 4,274
----------- -----------
Total assets $ 42,343 $ 40,489
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable and current portion of
long-term debt $ 6,391 $ 2,504
Accounts payable 3,492 3,285
Accrued liabilities 6,374 7,117
----------- -----------
Total current liabilities 16,257 12,906
----------- -----------
Long-term debt 4,293 3,089
Deferred income taxes 1,504 3,719
Other liabilities 1,192 1,598
Company-obligated mandatorily redeemable
preferred securities of subsidiary
trust holding solely company-
guaranteed debentures 485 484
Stockholders' equity 18,612 18,693
----------- -----------
Total liabilities and stockholders' equity $ 42,343 $ 40,489
=========== ===========
Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
Summarized below are the Company's segment sales as defined by
reportable segment for the three months ended December 31, 2000 and
December 31, 1999.
For the Quarter Ended December 31, 2000
-------------------------------------------
Segment Sales
-------------------------------------------
Excl Impact
Total of Exited Ongoing % Change
Motorola Businesses Operations from 1999
-------------------------------------------
Personal Communications
Segment $ 3,478 $ - $ 3,478 1%
Global Telecom Solutions
Segment 2,065 - 2,065 19%
Commercial, Govt, and
Industrial Systems Segment 1,300 - 1,300 8%
Broadband Communications
Segment 1,053 - 1,053 52%
Semiconductor Products
Segment 1,905 - 1,905 7%
Integrated Electronic
Systems Segment 764 - 764 9%
Other Products Segment 281 - 281 20%
Adjustments & Eliminations (782) - (782) 3%
-------------------------------------------
Segment Totals $ 10,064 $ - $ 10,064 11%
===========================================
For the Quarter Ended December 31, 1999
-------------------------------------------
Segment Sales
-------------------------------------------
Excl Impact
of Exited Ongoing
Total Motorola Businesses Operations
-------------------------------------------
Personal Communications Segment $ 3,458 $ - $ 3,458
Global Telecom Solutions Segment 1,740 - 1,740
Commercial, Govt, and Industrial
Systems Segment 1,208 - 1,208
Broadband Communications Segment 694 - 694
Semiconductor Products Segment 1,776 - 1,776
Integrated Electronic Systems
Segment 734 (31) 703
Other Products Segment 235 - 235
Adjustments & Eliminations (759) - (759)
-------------------------------------------
Segment Totals $ 9,086 $ (31) $ 9,055
===========================================
Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
§ Summarized below are the Company's segment operating profit (loss)
before taxes as defined by reportable segment for the three months
ended December 31, 2000 and December 31, 1999.
For the Quarter Ended December 31, 2000
--------------------------------------------------
Segment Operating Profit (Loss) before Taxes
--------------------------------------------------
Excl Ongoing
Excl Impact Oper-
Impact of ations
of Excl Exited Excl
Total Special Special Busin- Special
Motorola Items Items esses Items % Sales
--------- --------------- ----------------------------
Personal
Communications
Segment $ (375) $ 451 $ 76 $ - $ 76 2%
Global Telecom
Solutions
Segment 172 21 193 - 193 9%
Commercial,
Govt, and
Industrial
Systems
Segment 127 58 185 - 185 14%
Broadband
Communications
Segment 279 (123) 156 - 156 15%
Semiconductor
Products
Segment 27 131 158 - 158 8%
Integrated
Electronic
Systems
Segment 53 16 69 - 69 9%
Other Products
Segment 41 (200) (159) - (159) -57%
Adjustments &
Eliminations (66) - (66) - (66) 8%
--------- --------------- --------------------------
Segment Totals 258 354 612 - 612 6%
General
Corporate 155 (265) (131) - (131)
--------- --------------- --------------------------
Earnings Before
Income Taxes $ 413 $ 68 $ 481 $ - $ 481 5%
========= =============== ==========================
For the Quarter Ended December 31, 1999
--------------------------------------------------
Segment Operating Profit (Loss) before Taxes
--------------------------------------------------
Excl Ongoing
Excl Impact Oper-
Impact of ations
of Excl Exited Excl
Total Special Special Busin- Special
Motorola Items Items esses Items % Sales
--------- --------------- ----------------------------
Personal
Communications
Segment $ 267 $ (25) $ 242 $ - $ 242 7%
Global Telecom
Solutions
Segment (202) 447 245 - 245 14%
Commercial,
Govt, and
Industrial
Systems
Segment 170 12 182 - 182 15%
Broadband
Communications
Segment 87 8 95 - 95 14%
Semiconductor
Products
Segment 86 (6) 80 - 80 5%
Integrated
Electronic
Systems
Segment 65 - 65 (1) 64 9%
Other Products
Segment (21) (79) (100) - (100) -43%
Adjustments &
Eliminations 2 4 6 - 6 - 1%
--------- --------------- --------------------------
Segment Totals 454 361 815 (1) 814 9%
General
Corporate 4 (10) (6) - (6)
--------- --------------- --------------------------
Earnings Before
Income Taxes $ 458 $ 351 $ 809 $ (1) $ 808 9%
========= =============== ==========================
Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
Summarized below are the Company's segment sales as defined by
reportable segment for the year ended December 31, 2000 and December
31, 1999.
For the Year Ended December 31, 2000
------------------------------------------
Segment Sales
------------------------------------------
Excl Impact
Total of Exited Ongoing % Change
Motorola Businesses Operations from 1999
--------------------------------------------
Personal Communications
Segment $ 13,267 $ - $ 13,267 11%
Global Telecom Solutions
Segment 7,791 - 7,791 19%
Commercial, Govt, and
Industrial Systems Segment 4,580 - 4,580 14%
Broadband Communications
Segment 3,416 - 3,416 35%
Semiconductor Products
Segment 7,876 - 7,876 22%
Integrated Electronic
Systems Segment 2,869 (16) 2,853 16%
Other Products Segment 1,057 - 1,057 42%
Adjustments & Eliminations (3,276) - (3,276) 22%
--------------------------------------------
Segment Totals $ 37,580 $ (16) $ 37,564 17%
============================================
For the Year Ended December 31, 1999
--------------------------------------------
Segment Sales
--------------------------------------------
Excl Impact
Total of Exited Ongoing
Motorola Businesses Operations
--------------------------------------------
Personal Communications
Segment $ 11,932 $ - $ 11,932
Global Telecom Solutions
Segment 6,544 - 6,544
Commercial, Govt, and
Industrial Systems Segment 4,068 (56) 4,012
Broadband Communications
Segment 2,532 - 2,532
Semiconductor Products
Segment 7,370 (895) 6,475
Integrated Electronic
Systems Segment 2,592 (126) 2,466
Other Products Segment 804 (58) 746
Adjustments & Eliminations (2,767) 82 (2,685)
-------------------------------------------
Segment Totals $ 33,075 $(1,053) $ 32,022
=============================================
Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
§ Summarized below are the Company's segment operating profit (loss)
before taxes as defined by reportable segment for the year ended
December 31, 2000 and December 31, 1999.
For the Year Ended December 31, 2000
--------------------------------------------------
Segment Operating Profit (Loss) before Taxes
--------------------------------------------------
Excl Ongoing
Excl Impact Oper-
Impact of ations
of Excl Exited Excl
Total Special Special Busin- Special
Motorola Items Items esses Items % Sales
--------- --------------- ----------------------------
Personal
Communications
Segment $ (328) $ 770 $ 442 $ - $ 442 3%
Global Telecom
Solutions
Segment 846 130 976 - 976 13%
Commercial,
Govt, and
Industrial
Systems
Segment 434 73 507 - 507 11%
Broadband
Communications
Segment 1,251 (721) 530 - 530 16%
Semiconductor
Products
Segment 163 474 637 - 637 8%
Integrated
Electronic
Systems
Segment 184 20 204 - 204 7%
Other Products
Segment (338) (85) (423) - (423) -40%
Adjustments &
Eliminations (66) - (66) - (66) 2%
--------- --------------- --------------------------
Segment Totals 2,146 661 2,807 - 2,807 7%
General
Corporate 85 (180) (95) - (95)
--------- --------------- --------------------------
Earnings Before
Income Taxes $ 2,231 $ 481 $ 2,712 $ - $ 2,712 7%
========= =============== ==========================
For the Year Ended December 31, 1999
--------------------------------------------------
Segment Operating Profit (Loss) before Taxes
--------------------------------------------------
Excl Ongoing
Excl Impact Oper-
Impact of ations
of Excl Exited Excl
Total Special Special Busin- Special
Motorola Items Items esses Items % Sales
--------- --------------- ----------------------------
Personal
Communications
Segment $ 608 $ (18) $ 590 $ - $ 590 5%
Global Telecom
Solutions
Segment (479) 1,272 793 - 793 12%
Commercial,
Govt, and
Industrial
Systems
Segment 609 (186) 423 (8) 415 10%
Broadband
Communications
Segment 294 17 311 - 311 12%
Semiconductor
Products
Segment 619 (331) 288 (114) 174 3%
Integrated
Electronic
Systems
Segment 192 (6) 186 1 187 8%
Other Products
Segment (632) 228 (404) - (404) -54%
Adjustments &
Eliminations (4) 4 - (3) (3) 0%
------- -------------- --------------------------
Segment Totals 1,207 980 2,187 (124) 2,063 6%
General
Corporate 76 (148) (72) - (72)
------- -------------- --------------------------
Earnings Before
Income Taxes $ 1,283 $ 832 $ 2,115 $ (124) $ 1,991 6%
======== ================ ===========================
CONTACT: Motorola, Inc. Schaumburg
George Grimsrud, 847/576-2346
URL: www.businesswire.com
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
Copyright (C) 2001 Business Wire. All rights reserved.
KEYWORD: ILLINOIS LOUISIANA ARIZONA INTERNATIONAL HONG KONG
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS
HARDWARE
NETWORKING
TELECOMMUNICATIONS
EARNINGS
Grüsse Auhof
WEDNESDAY, JANUARY 10, 2001 5:18 PM
- BusinessWire
SCHAUMBURG, Ill., Jan 10, 2001 (BUSINESS:MOT) today reported sales of $10.1 billion in the fourth quarter of 2000, an increase of 11 percent from $9.1 billion a year earlier. Excluding special items, earnings were $335 million, or 15 cents per share, down 41 percent from $564 million, or 25 cents per share a year ago.
Including special items, earnings were $135 million, or 6 cents per share, compared with $323 million, or 15 cents per share a year ago. The 1999 figures are restated to reflect the merger with General Instrument Corporation and the June 1, 2000 3-for-1 stock split.
Robert L. Growney, president and chief operating officer, said, "Despite the higher sales, increases in manufacturing costs and operating expenses caused operating profits to decline. We have taken steps to reduce the cost structure in our manufacturing activities and to tightly control operating expenses. Further steps will be taken in 2001 to return the corporation to generating growth in its earnings."
In the fourth quarter of 2000, Motorola reported special items resulting in a net charge of $68 million pre-tax, or 9 cents per share after-tax. Charges were incurred primarily relating to the discontinuation of older wireless telephone products as part of an ongoing product portfolio simplification strategy and the downsizing of various manufacturing operations. The charges were largely offset by gains from the sale of investments during the quarter. In the fourth quarter of 1999, the company reported special items resulting in a net charge of $351 million pre-tax, or 10 cents per share after-tax.
For the full year, sales from ongoing operations rose 17 percent to $37.6 billion from $32.0 billion in 1999. Including sales from businesses sold in 1999, sales increased 14 percent from $33.1 billion a year ago. Full-year earnings from ongoing operations, excluding special items, were $1.9 billion, or 84 cents per share, compared with $1.4 billion, or 63 cents per share a year earlier. Including the earnings from businesses sold in 1999, full-year earnings were up 29 percent compared with $1.5 billion, or 67 cents per share a year earlier.
Results for Ongoing Operations, Excluding Special Items
Excluding special items, a comparison of results from ongoing operations is as follows:
(Dollars in millions, except per-share amounts)
Fourth Quarter Full Year
-------------- ---------
2000 1999 2000 1999
---- ---- ---- ----
Sales $10,064 $9,055 $37,564 $32,022
Net Earnings $335 $564 $1,897 $1,378
Earnings Per Share $.15 $.25 $.84 $.63
Net Margin on Sales 3.3% 6.2% 5.1% 4.3%
§ Total Consolidated Results, Including Special Items
§ Including special items, a comparison of results from operations
is as follows:
(Dollars in millions, except per-share amounts)
Fourth Quarter Full Year
-------------- ---------
2000 1999 2000 1999
---- ---- ---- ----
Sales $10,064 $9,086 $37,580 $33,075
Net Earnings $135 $323 $1,318 $891
Earnings Per Share $.06 $.15 $.58 $.41
Net Margin on Sales 1.3% 3.6% 3.5% 2.7%
The impact of business sales and special items on segment results is shown in the segment information tables at the end of this press release.
Growney reviewed the following results of major operations for the fourth quarter of 2000 compared with the fourth quarter of 1999. This review is based on ongoing operations, excluding special items, for each segment.
Personal Communications Segment
Segment sales rose 1 percent to $3.5 billion. Orders were $2.9 billion, down 20 percent. Operating profits declined to $76 million, compared with $242 million a year ago, due to increased manufacturing costs.
In the Americas, orders for wireless telephones increased, while sales were significantly higher. In Europe, orders were down very significantly, while sales were down significantly. In Asia, orders and sales increased.
Motorola has accelerated actions to improve financial results in this segment. In the previous two quarters, Motorola has taken significant steps to realign the segment to respond to changes in the market and to improve the existing cost structure. The focus has been on product simplification and restructuring of the supply chain.
In Europe, Motorola began shipping the V.Series(TM) V100 personal communicator, which combines a Global System for Mobile Communications (GSM) phone with a full keyboard, Internet browser, address book, games and voice dialing. In the U.S. the Timeport(TM) P7389i wireless phone was introduced. This GSM tri-band phone features General Packet Radio Services (GPRS) technology to provide a constant link to the mobile Internet. The V.Series model 60c phone also was unveiled. It features messaging, external caller ID, voice activation and a Wireless Application Protocol microbrowser.
Sega Corp. and Motorola signed an agreement that calls for Sega to develop games for Motorola wireless devices.
Global Telecom Solutions Segment
Segment sales increased 19 percent to $2.1 billion and orders rose 5 percent to $1.8 billion. Operating profits declined to $193 million, compared with $245 million a year ago, due to increased research and development and selling expenses.
In the Americas and in Europe, orders were lower, while sales increased. In Asia, orders were significantly higher and sales increased.
Motorola announced several agreements to supply third-generation (3G) networks capable of providing advanced multimedia services. These include Universal Mobile Telecommunications Systems (UMTS) for Telefonica Moviles in Spain and Telsim in Turkey, as well as cdma2000 1x network upgrades with KDDI in Japan, Sprint PCS in 13 U.S. markets and ALLTEL in Louisiana and Arizona.
In China, Motorola received more than $130 million in GSM network expansion contracts for systems in Sichuan, Fujian and Zhejiang provinces. China Mobile Communications Corp. also awarded Motorola a GPRS network supply contract for Beijing, Tianjin, Chengdu and Hangzhou.
Commercial, Government and Industrial Systems Segment
Segment sales increased 8 percent to $1.3 billion and orders were $1.4 billion, up 14 percent from a year ago. Operating profits increased to $185 million from $182 million a year ago.
In the Americas, orders were up significantly and sales were higher. In Europe, orders were lower and sales were higher. In Asia, orders and sales were higher.
The State of Illinois selected Motorola to design, install and operate a statewide ASTRO(R) digital radio communications system. Large ASTRO equipment awards received during the quarter included contracts in excess of $60 million each from the City of Austin, Texas and the Washington, D.C. Metro Area Transit Authority.
The sector was awarded contracts to provide systems based on the TETRA (TErrestrial Trunked RAdio) digital standard in Aachen, Germany, and for the Singapore Land Transit Authority. Motorola demonstrated the industry's first TETRA integrated voice and data system using packet data and expanded its TETRA portfolio with the addition of an 800-megahertz (MHz) solution. The sector received contracts to provide 800 MHz TETRA systems for the Korea National Police, Guangzhou Metro in China, and the Kowloon-Canton Railway Corporation's West Rail in Hong Kong.
Broadband Communications Segment
Segment sales increased 52 percent to $1.1 billion and orders rose 49 percent to $1.1 billion from a year ago. Operating profits increased to $156 million from $95 million a year ago.
Digital Network Systems had very significant increases in orders and sales. Internet Protocol Network Systems had higher orders and a significant increase in sales. Transmission Network Systems had lower orders and lower sales. Satellite Broadcast Network Systems had a very significant increase in orders and sales.
Motorola announced several new international digital technology wins. United Pan-Europe Communications N.V. selected Motorola's MediaCipher(TM) conditional access system for all of its broadband systems in Europe. Telia Stofa launched Motorola's digital cable platform in Denmark. Additionally, in Latin America, Motorola announced the launch of a new interactive digital system for SuperCable in Colombia.
Motorola introduced its Switched IP Access solution, enabling faster IP telephony deployments for operators with a Class 5 Switch.
Under a strategic agreement with Comcast Cable Communications, Inc., Motorola will provide additional cable modems.
DigiCipher(R)II encoders and access control systems were selected by ESPN to supplement its analog program distribution network with digital transmission systems.
Semiconductor Products Segment
Segment sales increased 7 percent to $1.9 billion and orders declined 19 percent to $1.6 billion. Operating profits rose to $158 million from $80 million a year ago.
Orders were down in all regions. Among major markets, orders were significantly higher in imaging/entertainment, higher in networking/computing, lower in transportation, and significantly lower in wireless and standard products.
Sales by region increased in the Americas, Asia and Europe. Sales were significantly higher in networking/computing, higher in imaging/entertainment, transportation and standard products, and lower for wireless.
To expand its embedded processor portfolio, Motorola signed a licensing agreement with ARM Ltd. and will offer an array of ARM-based solutions. The initial focus will be wireless applications, including enhancement of the DragonBall(TM) family of processors for the handheld computer and personal digital assistant market.
In home entertainment, Blockbuster Inc. and Enron Broadband Services announced in January 2001 that they are using Motorola's Streamaster(TM) residential gateway platform based on digital subscriber line (DSL) technology.
Product announcements included the industry's highest performance digital signal processor. Based on StarCore(R) technology, it is for use in applications such as packet telephony media gateways, multi-channel modem banks and 3G wireless systems.
Integrated Electronic Systems Segment
Segment sales increased 9 percent to $764 million and orders rose 4 percent to $708 million. Operating profits increased to $69 million from $64 million a year ago.
Sales and orders in the Telematics Communications Group (TCG) increased very significantly. The group announced that the latest Timeport(TM) multiband phone system is available as an integrated option on all 2001 Jaguar vehicles. Under an agreement with Mercedes Benz North America, TCG is to supply the Mercedes TeleAid Telematics system on all models beginning in 2001. The agreement is estimated at more than $225 million over four years.
The Motorola Computer Group (MCG) had significantly higher sales and orders. MCG signed four new contracts totaling $116 million over the next five years to supply high-availability platforms to telecommunications manufacturers, including a significant win in China. The group also received design wins for embedded electronics in the industrial automation, imaging and military market segments.
Automotive and Industrial Electronics Group (AIEG) sales were lower and orders were significantly lower, primarily due to softening vehicle sales in the U.S. Under agreements with Faurecia and Zytec in Europe, AIEG will develop advanced electronic control systems and pressure sensors.
Energy Systems Group sales and orders were lower.
Review and Outlook
Christopher B. Galvin, chairman and chief executive officer, said, "We are making the adjustments that are necessary in a period of slower overall economic growth. Having anticipated a softening in economic activity, we began implementing cost reductions in the third and fourth quarters of 2000, and will continue with additional actions to be taken in the first quarter of 2001. These actions have been designed to adjust our costs to softening global market conditions and, as the market recovers, to restore the trend of improved profitability that we had achieved over the last two years," he said.
"Despite a slowdown in the growth of overall consumer spending, we expect demand for wireless, broadband, and workgroup equipment and services to grow as individuals continue to be attracted to broadband's triple play of voice, data, and multimedia and the convenience of portable communication products. Growth in embedded devices has slowed in most segments, but the demand for embedded systems that make our customers' products simpler, safer, smarter and more synchronized remains strong in the long term," Galvin said.
"Business customers are assessing the recent changes in global debt markets and capital availability as they focus their near-term capital investments. The robustness of business activity in this economic cycle for companies like Motorola over the next few quarters will be largely determined by the level of success of further change in fiscal, tax and regulatory policy worldwide. We are still in the early phase of this change in economic cycle. Therefore, its pace and direction is not firmly predictable. Motorola has managed successfully through economic cycles in every decade since its founding in 1928. We remain more enthusiastic than ever about the benefits to society and our shareholders of wireless, broadband, Internet and embedded solutions tailored uniquely for the person, workteam, home and automobile, powered by embedded systems," he said.
Business Risks:
Statements about future cost reduction measures and the impact thereof, the commercial availability of new products, the completion of pending transactions and in "Review and Outlook" are forward-looking statements based on current expectations and involve risks and uncertainties. Motorola wishes to caution the reader that the factors below and those on pages F-25 through F-28 of the appendix to Motorola's Proxy Statement for the 2000 annual meeting of stockholders and in its other SEC filings could cause Motorola's actual results to differ materially from those stated in the forward-looking statements. These factors include: (i) the impact of foreign currency fluctuations on the company; (ii) the impact that lower-than-anticipated demand worldwide for cellular telephones will have on the company's performance; (iii) demand for products, including products related to new technologies such as Internet-ready phones; (iv) the company's ability to achieve improved profitability in its digital wireless telephone business, especially as it competes in the lower-tier wireless telephone market; (v) the company's success in the emerging 3G market; (vi) the demand for vendor financing and the company's ability to provide that financing in order to remain competitive; (vii) improvement in the worldwide semiconductor industry and the company's participation in that improvement; (viii) unexpected liabilities or expenses, including unfavorable outcomes to any currently pending or future litigation, including any relating to the Iridium project; (ix) pricing pressures and demand for the company's products, especially if economic conditions worsen in the company's markets; (x) the success of alliances and agreements with other companies to develop new products and services; (xi) product and technology development and commercialization risks, including for newer digital products; (xii) difficulties in integrating the operations of newly-acquired businesses and achieving strategic objectives, cost savings and other benefits; (xiii) the success of the company's ongoing cost-reduction efforts; and (xiv) the success of the company's ongoing product portfolio simplification efforts.
MOTOROLA, the Stylized M Logo and all other trademarks indicated as such herein are trademarks of Motorola, Inc. (R)Reg. U.S. Pat. & Tm. Off.
Motorola, Inc. and Subsidiaries
Consolidated Statements of Earnings
(In millions, except per share amounts)
For the Quarter Ended December 31, 2000
--------------------------------------------------
Excl Ongoing
Impact of Excl Operations
Special Excl Impact Excl
Total Items Special of Exited Special
Motorola Inc/(Exp) Items Businesses Items
--------- ------------------- -------------------
Net sales $ 10,064 $ - $ 10,064 $ - $ 10,064
Costs and expenses
Manufacturing and
other costs of
sales 6,790 (388) 6,402 - 6,402
Selling, general
and administrative
expenses 1,010 320 1,330 - 1,330
Research and
development
expenditures 1,144 1,144 - 1,144
Depreciation expense 634 634 - 634
Interest expense,
net 73 73 - 73
--------- ------------------- -------------------
Total costs and
expenses 9,651 (68) 9,583 - 9,583
--------- ------------------- -------------------
Earnings before
income taxes 413 68 481 - 481
Income tax provision 278 (132) 146 - 146
--------- ------------------- -------------------
Net earnings $ 135 $ 200 $ 335 $ - $ 335
========= =================== ===================
Net earnings per common share
-----------------------------
Basic $ 0.06 $ 0.09 $ 0.15 $ - $ 0.15
Diluted $ 0.06 $ 0.09 $ 0.15 $ - $ 0.15
Weighted average common shares outstanding
------------------------------------------
Basic 2,188.7 2,188.7 2,188.7 2,188.7 2,188.7
Diluted 2,240.6 2,240.6 2,240.6 2,240.6 2,240.6
Dividends paid per
share $ 0.04 $ 0.04 $ 0.04
Net margin on sales 1.3% 3.3% 3.3%
For the Quarter Ended December 31, 1999
--------------------------------------------------
Excl Ongoing
Impact of Excl Operations
Special Excl Impact Excl
Total Items Special of Exited Special
Motorola Inc/(Exp) Items Businesses Items
--------- ------------------- -------------------
Net sales $ 9,086 $ - $ 9,086 $ (31) $ 9,055
Costs and expenses
Manufacturing and
other costs of
sales 6,019 (497) 5,522 (27) 5,495
Selling, general
and administrative
expenses 1,220 (80) 1,140 (3) 1,137
Restructuring and
other charges (226) 226 - -
Research and
development
expenditures 1,032 1,032 1,032
Depreciation expense 563 563 563
Interest expense,
net 20 20 - 20
--------- ------------------- -------------------
Total costs and
expenses 8,628 (351) 8,277 (30) 8,247
--------- ------------------- -------------------
Earnings before
income taxes 458 351 809 (1) 808
Income tax provision 135 109 244 (0) 244
--------- ------------------- -------------------
Net earnings $ 323 $ 242 $ 565 $ (1) $ 564
========= =================== ===================
Net earnings per common share
-----------------------------
Basic $ 0.15 $ 0.11 $ 0.26 $ - $ 0.26
Diluted $ 0.15 $ 0.10 $ 0.25 $ - $ 0.25
Weighted average common shares outstanding
------------------------------------------
Basic 2,132.6 2,132.6 2,132.6 2,132.6 2,132.6
Diluted 2,224.5 2,224.5 2,224.5 2,224.5 2,224.5
Dividends paid per
share (1) $ 0.04 $ 0.04 $ 0.04
Net margin on sales 3.6% 6.2% 6.2%
(1) Dividends on Motorola shares outstanding prior to the General
Instrument merger.
Motorola, Inc. and Subsidiaries
Consolidated Statements of Earnings
(In millions, except per share amounts)
For the Year Ended December 31, 2000
--------------------------------------------------
Excl Ongoing
Impact of Excl Operations
Special Excl Impact Excl
Total Items Special of Exited Special
Motorola Inc/(Exp) Items Businesses Items
--------- ------------------- -------------------
Net sales $ 37,580 $ - $ 37,580 $ (16) $ 37,564
Costs and expenses
Manufacturing and
other costs of
sales 23,628 (887) 22,741 (16) 22,725
Selling, general
and administrative
expenses 4,684 406 5,090 - 5,090
Research and
development
expenditures 4,437 - 4,437 - 4,437
Depreciation expense 2,352 - 2,352 - 2,352
Interest expense,
net 248 - 248 248
--------- ------------------- -------------------
Total costs and
expenses 35,349 (481) 34,868 (16) 34,852
--------- ------------------- -------------------
Earnings before
income taxes 2,231 481 2,712 - 2,712
Income tax provision 913 (98) 815 - 815
--------- ------------------- -------------------
Net earnings $ 1,318 $ 579 $ 1,897 $ - $ 1,897
========= =================== ===================
Net earnings per common share
-----------------------------
Basic $ 0.61 $ 0.26 $ 0.87 $ - $ 0.87
Diluted $ 0.58 $ 0.26 $ 0.84 $ - $ 0.84
Weighted average common shares outstanding
------------------------------------------
Basic 2,170.1 2,170.1 2,170.1 2,170.1 2,170.1
Diluted 2,256.6 2,256.6 2,256.6 2,256.6 2,256.6
Dividends paid per
share $ 0.16 $ 0.16 $ 0.16
Net margin on sales 3.5% 5.0% 5.1%
Return on average
invested capital (1) 6.3%
For the Year Ended December 31, 1999
--------------------------------------------------
Excl Ongoing
Impact of Excl Operations
Special Excl Impact Excl
Total Items Special of Exited Special
Motorola Inc/(Exp) Items Businesses Items
--------- ------------------- -------------------
Net sales $ 33,075 $ - $ 33,075 $ (1,053) $ 32,022
Costs and expenses
Manufacturing and
other costs of
sales 20,631 (820) $ 19,811 (751) 19,060
Selling, general
and administrative
expenses 5,446 (238) $ 5,208 (148) 5,060
Restructuring and
other charges (226) 226 $ - - -
Research and
development
expenditures 3,560 - $ 3,560 (23) 3,537
Depreciation expense 2,243 - $ 2,243 (3) 2,240
Interest expense,
net 138 - $ 138 (4) 134
--------- ------------------- -------------------
Total costs and
expenses 31,792 (832) 30,960 (929) 30,031
--------- ------------------- -------------------
Earnings before
income taxes 1,283 832 2,115 (124) 1,991
Income tax provision 392 258 $ 650 (37) 613
--------- ------------------- -------------------
Net earnings $ 891 $ 574 $ 1,465 $ (87) $ 1,378
========= =================== ===================
Net earnings per common share
-----------------------------
Basic $ 0.42 $ 0.27 $ 0.69 $ (0.04) $ 0.65
Diluted $ 0.41 $ 0.26 $ 0.67 $ (0.04) $ 0.63
Weighted average common shares outstanding
------------------------------------------
Basic 2,119.5 2,119.5 2,119.5 2,119.5 2,119.5
Diluted 2,202.0 2,202.0 2,202.0 2,202.0 2,202.0
Dividends paid per
share (2) $ 0.16 $ 0.16 $ 0.16
Net margin on sales 2.7% 4.4% 4.3%
Return on average
invested capital (1) 5.3%
(1) Based on the performance of the four preceding quarters ending
with December 31, 2000 and December 31, 1999.
(2) Dividends on Motorola shares outstanding prior to the General
Instrument merger.
Motorola, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions)
ASSETS Dec. 31, Dec. 31,
2000 1999
----------- -----------
Cash and cash equivalents $ 3,301 $ 3,537
Short-term investments 354 699
Accounts receivable, net 7,092 5,627
Inventories, net 5,242 3,707
Deferred income taxes 2,294 3,247
Other current assets 1,602 768
----------- -----------
Total current assets 19,885 17,585
----------- -----------
Property, plant and equipment, net 11,157 9,591
Investments 5,926 9,039
Other assets 5,375 4,274
----------- -----------
Total assets $ 42,343 $ 40,489
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable and current portion of
long-term debt $ 6,391 $ 2,504
Accounts payable 3,492 3,285
Accrued liabilities 6,374 7,117
----------- -----------
Total current liabilities 16,257 12,906
----------- -----------
Long-term debt 4,293 3,089
Deferred income taxes 1,504 3,719
Other liabilities 1,192 1,598
Company-obligated mandatorily redeemable
preferred securities of subsidiary
trust holding solely company-
guaranteed debentures 485 484
Stockholders' equity 18,612 18,693
----------- -----------
Total liabilities and stockholders' equity $ 42,343 $ 40,489
=========== ===========
Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
Summarized below are the Company's segment sales as defined by
reportable segment for the three months ended December 31, 2000 and
December 31, 1999.
For the Quarter Ended December 31, 2000
-------------------------------------------
Segment Sales
-------------------------------------------
Excl Impact
Total of Exited Ongoing % Change
Motorola Businesses Operations from 1999
-------------------------------------------
Personal Communications
Segment $ 3,478 $ - $ 3,478 1%
Global Telecom Solutions
Segment 2,065 - 2,065 19%
Commercial, Govt, and
Industrial Systems Segment 1,300 - 1,300 8%
Broadband Communications
Segment 1,053 - 1,053 52%
Semiconductor Products
Segment 1,905 - 1,905 7%
Integrated Electronic
Systems Segment 764 - 764 9%
Other Products Segment 281 - 281 20%
Adjustments & Eliminations (782) - (782) 3%
-------------------------------------------
Segment Totals $ 10,064 $ - $ 10,064 11%
===========================================
For the Quarter Ended December 31, 1999
-------------------------------------------
Segment Sales
-------------------------------------------
Excl Impact
of Exited Ongoing
Total Motorola Businesses Operations
-------------------------------------------
Personal Communications Segment $ 3,458 $ - $ 3,458
Global Telecom Solutions Segment 1,740 - 1,740
Commercial, Govt, and Industrial
Systems Segment 1,208 - 1,208
Broadband Communications Segment 694 - 694
Semiconductor Products Segment 1,776 - 1,776
Integrated Electronic Systems
Segment 734 (31) 703
Other Products Segment 235 - 235
Adjustments & Eliminations (759) - (759)
-------------------------------------------
Segment Totals $ 9,086 $ (31) $ 9,055
===========================================
Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
§ Summarized below are the Company's segment operating profit (loss)
before taxes as defined by reportable segment for the three months
ended December 31, 2000 and December 31, 1999.
For the Quarter Ended December 31, 2000
--------------------------------------------------
Segment Operating Profit (Loss) before Taxes
--------------------------------------------------
Excl Ongoing
Excl Impact Oper-
Impact of ations
of Excl Exited Excl
Total Special Special Busin- Special
Motorola Items Items esses Items % Sales
--------- --------------- ----------------------------
Personal
Communications
Segment $ (375) $ 451 $ 76 $ - $ 76 2%
Global Telecom
Solutions
Segment 172 21 193 - 193 9%
Commercial,
Govt, and
Industrial
Systems
Segment 127 58 185 - 185 14%
Broadband
Communications
Segment 279 (123) 156 - 156 15%
Semiconductor
Products
Segment 27 131 158 - 158 8%
Integrated
Electronic
Systems
Segment 53 16 69 - 69 9%
Other Products
Segment 41 (200) (159) - (159) -57%
Adjustments &
Eliminations (66) - (66) - (66) 8%
--------- --------------- --------------------------
Segment Totals 258 354 612 - 612 6%
General
Corporate 155 (265) (131) - (131)
--------- --------------- --------------------------
Earnings Before
Income Taxes $ 413 $ 68 $ 481 $ - $ 481 5%
========= =============== ==========================
For the Quarter Ended December 31, 1999
--------------------------------------------------
Segment Operating Profit (Loss) before Taxes
--------------------------------------------------
Excl Ongoing
Excl Impact Oper-
Impact of ations
of Excl Exited Excl
Total Special Special Busin- Special
Motorola Items Items esses Items % Sales
--------- --------------- ----------------------------
Personal
Communications
Segment $ 267 $ (25) $ 242 $ - $ 242 7%
Global Telecom
Solutions
Segment (202) 447 245 - 245 14%
Commercial,
Govt, and
Industrial
Systems
Segment 170 12 182 - 182 15%
Broadband
Communications
Segment 87 8 95 - 95 14%
Semiconductor
Products
Segment 86 (6) 80 - 80 5%
Integrated
Electronic
Systems
Segment 65 - 65 (1) 64 9%
Other Products
Segment (21) (79) (100) - (100) -43%
Adjustments &
Eliminations 2 4 6 - 6 - 1%
--------- --------------- --------------------------
Segment Totals 454 361 815 (1) 814 9%
General
Corporate 4 (10) (6) - (6)
--------- --------------- --------------------------
Earnings Before
Income Taxes $ 458 $ 351 $ 809 $ (1) $ 808 9%
========= =============== ==========================
Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
Summarized below are the Company's segment sales as defined by
reportable segment for the year ended December 31, 2000 and December
31, 1999.
For the Year Ended December 31, 2000
------------------------------------------
Segment Sales
------------------------------------------
Excl Impact
Total of Exited Ongoing % Change
Motorola Businesses Operations from 1999
--------------------------------------------
Personal Communications
Segment $ 13,267 $ - $ 13,267 11%
Global Telecom Solutions
Segment 7,791 - 7,791 19%
Commercial, Govt, and
Industrial Systems Segment 4,580 - 4,580 14%
Broadband Communications
Segment 3,416 - 3,416 35%
Semiconductor Products
Segment 7,876 - 7,876 22%
Integrated Electronic
Systems Segment 2,869 (16) 2,853 16%
Other Products Segment 1,057 - 1,057 42%
Adjustments & Eliminations (3,276) - (3,276) 22%
--------------------------------------------
Segment Totals $ 37,580 $ (16) $ 37,564 17%
============================================
For the Year Ended December 31, 1999
--------------------------------------------
Segment Sales
--------------------------------------------
Excl Impact
Total of Exited Ongoing
Motorola Businesses Operations
--------------------------------------------
Personal Communications
Segment $ 11,932 $ - $ 11,932
Global Telecom Solutions
Segment 6,544 - 6,544
Commercial, Govt, and
Industrial Systems Segment 4,068 (56) 4,012
Broadband Communications
Segment 2,532 - 2,532
Semiconductor Products
Segment 7,370 (895) 6,475
Integrated Electronic
Systems Segment 2,592 (126) 2,466
Other Products Segment 804 (58) 746
Adjustments & Eliminations (2,767) 82 (2,685)
-------------------------------------------
Segment Totals $ 33,075 $(1,053) $ 32,022
=============================================
Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
§ Summarized below are the Company's segment operating profit (loss)
before taxes as defined by reportable segment for the year ended
December 31, 2000 and December 31, 1999.
For the Year Ended December 31, 2000
--------------------------------------------------
Segment Operating Profit (Loss) before Taxes
--------------------------------------------------
Excl Ongoing
Excl Impact Oper-
Impact of ations
of Excl Exited Excl
Total Special Special Busin- Special
Motorola Items Items esses Items % Sales
--------- --------------- ----------------------------
Personal
Communications
Segment $ (328) $ 770 $ 442 $ - $ 442 3%
Global Telecom
Solutions
Segment 846 130 976 - 976 13%
Commercial,
Govt, and
Industrial
Systems
Segment 434 73 507 - 507 11%
Broadband
Communications
Segment 1,251 (721) 530 - 530 16%
Semiconductor
Products
Segment 163 474 637 - 637 8%
Integrated
Electronic
Systems
Segment 184 20 204 - 204 7%
Other Products
Segment (338) (85) (423) - (423) -40%
Adjustments &
Eliminations (66) - (66) - (66) 2%
--------- --------------- --------------------------
Segment Totals 2,146 661 2,807 - 2,807 7%
General
Corporate 85 (180) (95) - (95)
--------- --------------- --------------------------
Earnings Before
Income Taxes $ 2,231 $ 481 $ 2,712 $ - $ 2,712 7%
========= =============== ==========================
For the Year Ended December 31, 1999
--------------------------------------------------
Segment Operating Profit (Loss) before Taxes
--------------------------------------------------
Excl Ongoing
Excl Impact Oper-
Impact of ations
of Excl Exited Excl
Total Special Special Busin- Special
Motorola Items Items esses Items % Sales
--------- --------------- ----------------------------
Personal
Communications
Segment $ 608 $ (18) $ 590 $ - $ 590 5%
Global Telecom
Solutions
Segment (479) 1,272 793 - 793 12%
Commercial,
Govt, and
Industrial
Systems
Segment 609 (186) 423 (8) 415 10%
Broadband
Communications
Segment 294 17 311 - 311 12%
Semiconductor
Products
Segment 619 (331) 288 (114) 174 3%
Integrated
Electronic
Systems
Segment 192 (6) 186 1 187 8%
Other Products
Segment (632) 228 (404) - (404) -54%
Adjustments &
Eliminations (4) 4 - (3) (3) 0%
------- -------------- --------------------------
Segment Totals 1,207 980 2,187 (124) 2,063 6%
General
Corporate 76 (148) (72) - (72)
------- -------------- --------------------------
Earnings Before
Income Taxes $ 1,283 $ 832 $ 2,115 $ (124) $ 1,991 6%
======== ================ ===========================
CONTACT: Motorola, Inc. Schaumburg
George Grimsrud, 847/576-2346
URL: www.businesswire.com
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
Copyright (C) 2001 Business Wire. All rights reserved.
KEYWORD: ILLINOIS LOUISIANA ARIZONA INTERNATIONAL HONG KONG
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS
HARDWARE
NETWORKING
TELECOMMUNICATIONS
EARNINGS
Grüsse Auhof