SCHAUMBURG, Ill., Oct 9, 2001 (BUSINESS WIRE) --
Motorola
(NYSE:MOT):
§ Highlights included:
§ -- Reduction in sequential pro forma loss versus second quarter;
§ -- Return to profitability in wireless handsets and continuing
gain in market share versus last year;
§ -- Reduction of net debt by $2.4 billion from second quarter;
§ -- Positive operating cash flow; and,
§ -- Incurred as reported net charge of $2.0 billion, which does
not adversely impact cash.
§ Motorola, Inc. (NYSE:MOT) today reported sales of $7.4 billion in
the third quarter of 2001. This is a decrease of 22 percent from $9.5
billion a year earlier. Including pro forma adjustments, the company
incurred a loss of $153 million, or (7) cents per share, compared with
earnings of $643 million, or 28 cents per share a year ago.
§ Robert L. Growney, president and chief operating officer, said,
"We are pleased to report that our wireless handset business returned
to profitability and again reported higher market share compared to
last year. In total, Motorola made important progress in sequentially
reducing its pro forma operating loss, although we won't be satisfied
until we return to solid and growing profitability throughout our
portfolio of businesses. We also reduced Motorola's net debt by an
additional $2.4 billion and generated positive operating cash flow of
approximately $200 million during the third quarter, thus further
strengthening our balance sheet. We will continue to be focused on
efforts to control operating expenses and to maintain the health of
our balance sheet during this period of uncertainty."
§ In the third quarter of 2001, Motorola reported pro forma
adjustments resulting in a net charge of $2.0 billion pre-tax, or (57)
cents per share after-tax. Charges were incurred primarily for
investment impairments, cost-reduction activities and approximately
$1.3 billion in additional reserves that relate to a defaulted $2
billion financing to Telsim, a cellular operator in Turkey. These
charges were partially offset by a gain from the sale of a business.
§ In the third quarter of 2000, Motorola reported pro forma
adjustments resulting in a net charge of $144 million pretax, or 5
cents per share after tax.
§ Excluding pro forma adjustments, the third-quarter 2001 loss was
$1.4 billion, or (64) cents per share, compared with earnings of $531
million, or 23 cents per share, in the third quarter of 2000.
Consolidated Results for Ongoing Operations, Including Pro Forma Adjustments
--------------------------------------------
Including pro forma adjustments, a comparison of results from ongoing operations
is as follows:
(Dollars in millions, except per-share amounts)
Third Quarter Nine Months
------------- -----------
2001 2000 2001 2000
---- ---- ---- ---- Sales $7,406 $9,493 $22,680 $27,500 Net Earnings (Loss)
$(153) $643 $(591) $1,675 Earnings (Loss) Per Share $(.07) $.28 $(.27) $.74 Net
Margin on Sales -2.1% 6.8% -2.6% 6.1%
Total Consolidated Results --------------------------
Excluding pro forma adjustments, a comparison of results from operations is as
follows:
(Dollars in millions, except per-share amounts)
Third Quarter Nine Months
------------- -----------
2001 2000 2001 2000
---- ---- ---- ---- Sales $7,406 $9,493 $22,680 $27,516 Net Earnings (Loss)
$(1,408) $531 $(2,700) $1,183 Earnings (Loss) Per Share $(.64) $.23 $(1.23) $.52
Net Margin on Sales -19.0% 5.6% -11.9% 4.3%
§ The impact of pro forma adjustments (as defined in a footnote to
this press release) 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
third quarter of 2001 compared with the third quarter of 2000. This
review is based on operations, including pro forma adjustments.
§ Personal Communications Segment
§ Segment sales were $2.7 billion, down 16 percent. Orders were $3.0
billion, down 12 percent. The segment's market share for wireless
handsets increased by approximately two percentage points versus a
year ago to between 17 and 18 percent. The segment recorded operating
earnings of $19 million versus operating earnings of $189 million a
year ago. The decline in financial performance compared to a year ago
was due to lower worldwide demand for wireless handsets by service
providers.
§ On a sequential basis versus the second quarter, financial
performance improved. Sales increased 8 percent and orders increased 3
percent. This is the third consecutive quarter in which orders have
exceeded sales, reflecting the market's strong reception to the
segment's new product portfolio. The segment returned to profitability
following two quarters of losses and increased its market share
slightly.
§ During the quarter, Motorola continued to strengthen its market
position in 2.5 Generation (2.5G) General Packet Radio Service (GPRS)
by delivering its second generation of GPRS wireless handsets that
operate on Global System for Mobile (GSM) communication systems.
Motorola shipped an estimated 1.5 million GPRS wireless handsets in
the third quarter and expects to ship five million GPRS units by
year-end 2001.
§ Industry experts continue to report that only Motorola has a
complete portfolio of commercially available GPRS solutions, which
offer the potential to increase average revenue per unit for service
providers. These include the Motorola Accompli(TM) 008, which blends
voice, "always-on" Internet access and personal organizer
functionality; the Motorola V.series(TM) 60, 66 and 100, a blend of
style and technology for consumers; the Motorola Timeport(TM) 280,
which provides increased productivity for business users on the go;
and the Motorola Talkabout(TM) 193 for cost-conscious, entry-level
consumers.
§ Motorola shipped a variety of its second-generation GPRS handsets
to Europe and announced the availability of the first two GPRS
wireless handsets in North America. In Asia, Motorola continues to
lead in the delivery of GPRS by shipping two new GPRS products in the
region.
§ In Code Division Multiple Access (CDMA) handsets, Motorola
continues to win customer approvals for the V.series 120c and 60c and
for the Timeport 270c, which are shipping in volume. These products
feature Motorola's new, simple to navigate, next-generation user
interface. The company also introduced three new CDMA 1X handsets for
Korea, and it received acceptance for the entry-level Talkabout 182
from several operators in Latin America.
§ In Time Division Multiple Access (TDMA) handsets, Motorola has won
numerous customer approvals for the V.series 60t, including customers
in Mexico and Brazil. U.S. customers also have begun field trials of
the product.
§ The company also made a number of iDEN(R) technology
announcements. Motorola shipped the i55sr handset for use in harsh
environments, the first handset of its kind in North America with
Java(TM) technology. This is also the third handset from Motorola with
Java 2 Platform, Micro Edition (J2ME(TM)) technology, allowing users
to customize the phone with software applications to fit their
business and personal lifestyles. Motorola also introduced the
iBoard(TM), the first portable, full-sized keyboard for wireless
handsets which provides users with the ability to compose e-mail
messages and enter date book appointments. The iBoard leverages and
extends the mobile computing power of Motorola's i85s, i50sx and i55sr
Internet-ready wireless handsets.
§ Global Telecom Solutions Segment
§ Segment sales were $1.8 billion, down 10 percent. Orders declined
13 percent to $1.6 billion. Operating earnings declined to $33
million, compared with $247 million a year ago. Operating earnings
declined due to a decrease in sales stemming from lower worldwide
demand for wireless infrastructure equipment by service providers and
an increase in manufacturing costs.
§ During the quarter, Motorola was awarded a CDMA2000 1X digital
wireless infrastructure contract with Telekom Malaysia, signed six GSM
communications expansion contracts with China Unicom and announced the
launch of a nationwide GPRS network for LibanCell in Lebanon.
§ After the quarter ended, Motorola announced it had won two CDMA 1X
infrastructure contracts, including one in the Ukraine and a CDMA
network expansion with Horizon PCS in six states in the U.S. The
contract with Horizon PCS includes upgrades and expansion of the
operator's current system to provide 3G CDMA 1X voice and data
services capability.
§ Motorola also won India's single largest contract for a new GSM
system for Bharat Sanchar Nigam, Ltd.; a new GSM network contract
including GPRS services for Bharti Enterprises in India; a GSM network
contract with Telekom Cellular Sdn. Bhd. in Malaysia; and, a GPRS
expansion contract with China Mobile.
§ Motorola and Nextel announced new enhancements to the iDEN
wireless network technology which are expected to lead to a doubling
of wireless voice capacity. These enhancements are expected to become
available in 2003.
§ Commercial, Government and Industrial Systems Segment
§ Segment sales declined 10 percent to $1.0 billion and orders
decreased 17 percent to $1.0 billion. Operating earnings decreased to
$87 million from $120 million a year ago due largely to the decline in
sales.
§ In the third quarter, Motorola received equipment orders from
customers in Australia, China, Germany, Italy, Korea, Malaysia,
Mexico, the Netherlands, Spain, the U.K. and the U.S.
§ Motorola was awarded a contract from Burlington County, N.J. for
an integrated digital two-way radio communications system that will be
used by public-safety and other county agencies. In addition, the City
of Phoenix agreed to expand its Project 25-compliant infrastructure
project, which enables seamless radio communications within the
Phoenix/Mesa area. Project 25 is the U.S. standard for digital
public-safety radio communications.
§ Motorola successfully completed a wireless wideband data trial in
Pinellas County, Fla. The technology, which represents the next
generation of public-safety communications, is many times faster than
the current U.S. public-safety standard and enables simultaneous live
wireless mobile video, voice and high-speed Intranet/Internet data
transmission on one system.
§ At the end of the quarter, Motorola completed the sale of this
segment's defense and government electronics business to General
Dynamics for $825 million in cash.
§ Broadband Communications Segment
§ Segment sales and orders decreased 31 percent to $637 million and
$647 million, respectively. These declines resulted from a slow down
by cable operators in making capital investments and deploying
subscriber equipment. Operating earnings decreased to $120 million
compared with $160 million a year ago as a result of the decline in
sales. Operating earnings as a percent of sales increased due to
continued cost reductions, a strong mix of North American digital
cable sales and focused overhead cost management.
§ Shortly after the quarter ended, Callahan Associates International
awarded Motorola a second network upgrade in Baden-Wurttemburg,
Germany. Under the agreement, Motorola will supply network
infrastructure electronics, Voice over IP (VoIP) consumer premise
equipment and cable modem termination system technology. This will
enable Callahan to offer advanced interactive broadband video, voice
and data services to potentially more than 7.4 million homes in
Germany.
§ Semiconductor Products Segment
§ Segment sales decreased 48 percent to $1.1 billion and orders
declined 49 percent to $1.1 billion. The segment had an operating loss
of $355 million versus operating earnings of $202 million a year ago,
due to the decline in sales, as the worldwide semiconductor industry
continued to experience its sharpest decline in history.
§ On a sequential basis versus the second quarter, this segment's
sales declined 14 percent, however, its operating loss remained flat
as the result of major cost-reduction efforts over the past several
quarters. Orders increased sequentially and the level of orders
slightly exceeded the level of sales for the first time since the
third quarter of 2000.
§ Motorola announced plans to offer complete, embedded wireless 2.5G
and 3G semiconductor and software solutions to handset manufacturers
and designers worldwide. The company also introduced its first 2.5G
platform for the merchant market, the 2.5G Innovative Convergence(TM)
i.250.
§ Motorola also announced that Cisco Systems, Inc. had selected its
newest member of the G4 PowerPC(TM) microprocessor family for use in
several of Cisco's high-end routers. Applications for this
microprocessor family include networking, telecom, high-end embedded
systems, scientific computing and desktop computing.
§ Motorola said it will join with Delphi Automotive Systems to
develop next-generation powertrain control systems based on the e500
core architecture.
§ The company also announced an alliance with Palm, Inc. to provide
Palm OS(R) licensees with the next-generation DragonBall(TM)
microprocessors, the DragonBall MX family, that will be based on
ARM(R) technology. Motorola's DragonBall processors currently power
more than 75 percent of the world's personal digital assistants
according to a leading market research group.
§ Integrated Electronic Systems Segment
§ Segment sales and orders decreased 30 percent to $513 million and
$545 million, respectively. The segment incurred an operating loss of
$14 million versus operating earnings of $47 million a year ago due to
the decline in sales, especially a decline in sales of higher margin
products.
§ During the quarter, Motorola's Automotive Communications and
Electronic Systems Group announced several new contracts with major
automakers. BMW and Motorola signed an agreement that is estimated to
be worth several hundred million dollars over several years to develop
telematics solutions for the U.S., German and Japanese markets. Audi
AG awarded Motorola a strategic, worldwide, six-year contract to
provide it with the latest integrated information and entertainment
solutions. Motorola also announced that it will provide telematics
vehicle communications systems on Ford's 2002 Lincoln automobiles.
§ Motorola Computer Group unveiled plans for a Multi-Service Packet
Transport Platform, which is based on newly ratified industry
standards, and creates a multi-service architecture with performance
that surpasses the industry in high availability, speed and bandwidth.
§ Motorola's Energy Systems Group announced a strategic alliance
with TTP Communications plc (TTPCom), a supplier of technology for the
wireless communications industry, to provide equipment manufacturers
with an optimized energy system for TTPCom turnkey designs.
§ Other
§ The quarter's pro forma adjustments are principally comprised of a
non-cash $1.3 billion charge to increase Motorola's reserve relating
to $2.0 billion in financing to Telsim, a GSM operator in Turkey,
which is currently in default. Thus far Telsim has been largely
uncooperative in restructuring the loan or in entering into a
transaction with third-party investors to either sell, or bring new
equity into, the company. With this additional reserve, the net amount
of the receivable from Telsim on Motorola's books is now $530 million.
Regardless of the reserves already taken, Motorola intends to continue
to pursue a collaborative solution with Telsim or, if need be, to
pursue all remedies to address Telsim's breach of contract and collect
the $2 billion Telsim owes to Motorola.
§ The company also had a non-cash charge of approximately $850
million relating to impairments in Motorola's investment portfolio,
comprised of interests in other technology companies; and a charge of
approximately $220 million relating to cost-reduction activities.
These charges were partially offset by a gain of approximately $525
million realized from the sale for cash of the Integrated Information
Systems Group to General Dynamics.
§ Motorola announced that Motorola Labs had scored a technological
break-through that had eluded the semiconductor industry for 30 years
by successfully developing compound semiconductors such as gallium
arsenide on silicon wafers. This discovery has the potential to open
the doors to producing smarter and even more exciting, less expensive
new electronic products.
§ Review and Outlook
§ Christopher B. Galvin, chairman and chief executive officer, said,
"A little more than a year ago, the Motorola management team sensed
the beginning of the economic downturn, especially in the
telecommunications and semiconductor industries. Some aspects of our
business model remain predictors of the overall global economic
trends. From that point, we have been reducing costs, focusing on
operational cash flow and strengthening our balance sheet, while at
the same time maintaining our sizeable investments in research and
product development.
§ "Until the unexpected and horrific atrocities of September 11th,
our predictive indicators seemed to indicate that the world would most
probably return to more positive economic growth in the first or
second quarter of 2002. These events make near-term forecasting more
challenging. Overall though, we believe the unpredictability of future
military and other responses associated with a global war on terrorism
will be offset by the positive near-term stimulus of tax relief,
interest rate reduction and a massive infusion of liquidity by
government authorities. Nonetheless, calling the specific timing of a
broad economic turnaround is difficult. Because of this uncertainty,
Motorola will continue to be very prudent in managing the costs
associated with doing business and in the utilization of its assets.
We are controlling the things we can control.
§ "There are numerous examples of what we can control. Our new
portfolio of wireless handsets is being very well received by both
service providers and consumers. We continue to recapture wireless
handset market share versus last year and have returned to
profitability in that business segment. Motorola is the leader in
broadband technology including Voice over IP, and we are well
positioned for market leadership in an industry with a bright future.
Additionally, Motorola is the industry leader in two-way radio
technology, a technology that continues to serve the police, fire and
rescue operations on the city, state and federal levels.
§ "In addition, we continue to identify the strategic businesses we
must be in to succeed. This includes the purchase of new companies
that complement our portfolio and divestiture of businesses better
served outside Motorola's current and future business portfolio. This
quarter, the sale of our government electronics business t-----------
Total Excl
Pro Forma Pro Forma Impact of Pro Forma
Total Adjustments Total Exited Ongoing
Motorola Inc/(Exp) Motorola Businesses Operations
---------- --------------------- ---------------------
Net sales $ 9,493 $ - $ 9,493 $ - $ 9,493
Costs and
expenses
Manufacturing
and other
costs of sales 6,130 (499) 5,631 - 5,631
Selling,
general and
administrative
expenses 1,185 (62) 1,123 - 1,123
Research and
development
expenditures 1,171 - 1,171 - 1,171
Depreciation
expense 592 - 592 - 592
Reorganization
of businesses 220 (220) - - -
Other charges 90 (90) - - -
Interest
expense, net 74 - 74 - 74
Gains on sales
of investments
and businesses (727) 727 - - -
---------- --------------------- ---------------------
Total costs and
expenses 8,735 (144) 8,591 - 8,591
---------- --------------------- ---------------------
Earnings (loss)
before income
taxes 758 144 902 - 902
Income tax
provision 227 32 259 - 259
---------- --------------------- ---------------------
Net earnings
(loss) $ 531 $ 112 $ 643 $ - $ 643
========== ===================== =====================
Net earnings (loss) per common share
------------------------------------
Basic $ 0.24 $ 0.05 $ 0.29 $ - $ 0.29
Diluted $ 0.23 $ 0.05 $ 0.28 $ - $ 0.28
Weighted average common shares outstanding
------------------------------------------
Basic 2,182.3 2,182.3 2,182.3 2,182.3 2,182.3
Diluted 2,266.0 2,266.0 2,266.0 2,266.0 2,266.0
Dividends paid
per share $ 0.04 $ 0.04 $ 0.04
Net margin on
sales 5.6% 6.8% 6.8%
Motorola, Inc. and Subsidiaries
Consolidated Statements of Operations
(In millions, except per share amounts)
For the Nine Months Ended September 29, 2001
--------------------------------------------------
Total Excl
Pro Forma Pro Forma Impact of Pro Forma
Total Adjustments Total Exited Ongoing
Motorola Inc/(Exp) Motorola Businesses Operations
---------- --------------------- ---------------------
Net sales $ 22,680 $ - $ 22,680 $ - $ 22,680
Costs and
expenses
Manufacturing
and other
costs of sales 16,410 (929) 15,481 - 15,481
Selling,
general and
administrative
expenses 2,833 (85) 2,748 - 2,748
Research and
development
expenditures 3,295 - 3,295 - 3,295
Depreciation
expense 1,749 - 1,749 - 1,749
Reorganization
of businesses 993 (993) - - -
Other charges 2,654 (2,654) - - -
Interest
expense, net 302 - 302 - 302
Gains on sales
of investments
and businesses (1,898) 1,898 - - -
---------- --------------------- ---------------------
Total costs and
expenses 26,338 (2,763) 23,575 - 23,575
---------- --------------------- ---------------------
Earnings (loss)
before income
taxes (3,658) 2,763 (895) - (895)
Income tax
provision (958) 654 (304) - (304)
---------- --------------------- ---------------------
Net earnings
(loss) $ (2,700)$ 2,109 $ (591)$ - $ (591)
========== ===================== =====================
Net earnings (loss) per common share
------------------------------------
Basic $ (1.23)$ 0.96 $ (0.27)$ - $ (0.27)
Diluted $ (1.23)$ 0.96 $ (0.27)$ - $ (0.27)
Weighted average common shares outstanding
------------------------------------------
Basic 2,204.7 2,204.7 2,204.7 2,204.7 2,204.7
Diluted 2,204.7 2,204.7 2,204.7 2,204.7 2,204.7
Dividends paid
per share $ 0.12 $ 0.12 $ 0.12
Net margin on
sales -11.9% -2.6% -2.6%
Return on
average
invested
capital (1) -11.2%
For the Nine Months Ended September 30, 2000
--------------------------------------------------
Total Excl
Pro Forma Pro Forma Impact of Pro Forma
Total Adjustments Total Exited Ongoing
Motorola Inc/(Exp) Motorola Businesses Operations
---------- --------------------- ---------------------
Net sales $ 27,516 $ - $ 27,516 $ (16)$ 27,500
Costs and
expenses
Manufacturing
and other
costs of sales 16,838 (499) 16,339 (15) 16,324
Selling,
general and
administrative
expenses 3,795 (160) 3,635 - 3,635
Research and
development
expenditures 3,293 - 3,293 - 3,293
Depreciation
expense 1,718 - 1,718 - 1,718
Reorganization
of businesses 220 (220) - - -
Other charges 506 (506) - - -
Interest
expense, net 175 - 175 - 175
Gains on sales
of investments
and businesses (847) 847 - - -
---------- --------------------- ---------------------
Total costs and
expenses 25,698 (538) 25,160 (15) 25,145
---------- --------------------- ---------------------
Earnings (loss)
before income
taxes 1,818 538 2,356 (1) 2,355
Income tax
provision 635 45 680 - 680
---------- --------------------- ---------------------
Net earnings
(loss) $ 1,183 $ 493 $ 1,676 $ (1)$ 1,675
========== ===================== =====================
Net earnings (loss) per common share
------------------------------------
Basic $ 0.55 $ 0.22 $ 0.77 $ - $ 0.77
Diluted $ 0.52 $ 0.22 $ 0.74 $ - $ 0.74
Weighted average common shares outstanding
------------------------------------------
Basic 2,164.1 2,164.1 2,164.1 2,164.1 2,164.1
Diluted 2,258.2 2,258.2 2,258.2 2,258.2 2,258.2
Dividends paid
per share $ 0.12 $ 0.12 $ 0.12
Net margin on
sales 4.3% 6.1% 6.1%
Return on
average
invested
capital (1) 7.9%
(1) Based on the performance of the four preceding quarters ended
September 29, 2001 and September 30, 2000.
Motorola, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions)
ASSETS September December
29, 31,
2001 2000
---------- ----------
Cash and cash equivalents $ 5,371 $ 3,301
Short-term investments 272 354
Accounts receivable, net 5,114 7,092
Inventories, net 3,250 5,242
Other current assets 4,974 3,896
---------- ----------
Total current assets 18,981 19,885
---------- ----------
Property, plant and equipment, net 9,711 11,157
Investments 2,553 5,926
Other assets 3,014 5,375
---------- ----------
Total assets $ 34,259 $ 42,343
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable and current portion of
long-term debt $ 2,717 $ 6,391
Accounts payable 2,765 3,492
Accrued liabilities 5,863 6,374
---------- ----------
Total current liabilities 11,345 16,257
---------- ----------
Long-term debt 6,608 4,293
Other liabilities 1,537 2,696
Company-obligated mandatorily redeemable
preferred securities of subsidiary
trust holding solely company-
guaranteed debentures 485 485
Stockholders' equity 14,284 18,612
---------- ----------
Total liabilities and stockholders' equity $ 34,259 $ 42,343
========== ==========
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 September 29, 2001 and
September 30, 2000.
For the Quarter Ended September 29, 2001
-----------------------------------------------
Segment Sales
-----------------------------------------------
Excl Impact
Total of Exited Ongoing % Change
Motorola Businesses Operations from 2000
-----------------------------------------------
Personal Communications
Segment $ 2,693 $ - $ 2,693 -16%
Global Telecom
Solutions Segment 1,771 - 1,771 -10%
Commercial, Govt, and
Industrial Systems
Segment 1,029 - 1,029 -10%
Broadband
Communications Segment 637 - 637 -31%
Semiconductor Products
Segment 1,080 - 1,080 -48%
Integrated Electronic
Systems Segment 513 - 513 -30%
Other Products Segment 140 - 140 -49%
Adjustments &
Eliminations (457) - (457) 45%
------------------------------------
Segment Totals $ 7,406 $ - $ 7,406 -22%
==============================================
For the Quarter Ended September 30, 2000
-----------------------------------------------
Segment Sales
-----------------------------------------------
Excl Impact
Total of Exited Ongoing
Motorola Businesses Operations
-----------------------------------------------
Personal Communications
Segment $ 3,221 $ - $ 3,221
Global Telecom
Solutions Segment 1,960 - 1,960
Commercial, Govt, and
Industrial Systems
Segment 1,145 - 1,145
Broadband
Communications Segment 917 - 917
Semiconductor Products
Segment 2,071 - 2,071
Integrated Electronic
Systems Segment 737 - 737
Other Products Segment 272 - 272
Adjustments &
Eliminations (830) - (830)
----------------------------------------------
Segment Totals $ 9,493 $ - $ 9,493
==============================================
Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
Summarized below are the Company's segment operating earnings (loss)
before taxes as defined by reportable segment for the three months
ended September 29, 2001 and September 30, 2000.
For the Quarter Ended September 29, 2001
--------------------------------------------------
Segment Operating Earnings (Loss) before Taxes
--------------------------------------------------
Total
Pro Excl
Forma Impact Pro
Adjust- Pro of Forma
ments Forma Exited Ongoing
Total (Inc)/ Total Busin- Opera-
Motorola Exp Motorola esses tions % Sales
-------- --------------- ------------------------
Personal
Communications
Segment $ (338) $ 357 $ 19 $ - $ 19 1%
Global Telecom
Solutions Segment (957) 990 33 - 33 2%
Commercial, Govt,
and Industrial
Systems Segment 493 (406) 87 - 87 8%
Broadband
Communications
Segment (488) 608 120 - 120 19%
Semiconductor
Products Segment (481) 126 (355) - (355) -33%
Integrated Electronic
Systems Segment (56) 42 (14) - (14) -3%
Other Products
Segment (198) 108 (90) - (90) -64%
Adjustments &
Eliminations 70 1 71 - 71 -16%
-------- --------------- ------------------------
Segment Totals (1,955) 1,826 (129) - (129) -2%
General Corporate (264) 162 (102) - (102)
-------- --------------- ------------------------
Earnings (Loss) Before
Income Taxes $ (2,219)$ 1,988 $ (231) $ - $ (231) -3%
======== =============== ========================
For the Quarter Ended September 30, 2000
--------------------------------------------------
Segment Operating Earnings (Loss) before Taxes
--------------------------------------------------
Total
Pro Excl
Forma Impact Pro
Adjust- Pro of Forma
ments Forma Exited Ongoing
Total (Inc)/ Total Busin- Opera-
Motorola Exp Motorola esses tions % Sales
-------- --------------- ------------------------
Personal
Communications
Segment $ (197) $ 386 $ 189 $ - $ 189 6%
Global Telecom
Solutions
Segment 136 111 247 - 247 13%
Commercial, Govt,
and Industrial
Systems Segment 109 11 120 - 120 10%
Broadband
Communications
Segment 757 (597) 160 - 160 17%
Semiconductor
Products Segment 68 134 202 - 202 10%
Integrated Electronic
Systems Segment 14 33 47 - 47 6%
Other Products
Segment (172) 59 (113) - (113) -42%
Adjustments &
Eliminations (1) 1 - - - 0%
-------- --------------- ------------------------
Segment Totals 714 138 852 - 852 9%
General Corporate 44 6 50 - 50
-------- --------------- ------------------------
Earnings (Loss)
Before Income
Taxes $ 758 $ 144 $ 902 $ - $ 902 9%
======== =============== ========================
Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
Summarized below are the Company's segment sales as defined by
reportable segment for the nine months ended September 29, 2001 and
September 30, 2000.
For the Nine Months Ended September 29, 2001
-----------------------------------------------
Segment Sales
-----------------------------------------------
Excl Impact
Total of Exited Ongoing % Change
Motorola Businesses Operations from 2000
-----------------------------------------------
Personal Communications
Segment $ 7,473 $ - $ 7,473 -24%
Global Telecom
Solutions Segment 5,172 - 5,172 -10%
Commercial, Govt, and
Industrial Systems
Segment 3,120 - 3,120 -5%
Broadband
Communications Segment 2,275 - 2,275 -4%
Semiconductor Products
Segment 3,813 - 3,813 -36%
Integrated Electronic
Systems Segment 1,699 - 1,699 -19%
Other Products Segment 633 - 633 -18%
Adjustments &
Eliminations (1,505) - (1,505) 40%
------------------------------------
Segment Totals $ 22,680 $ - $ 22,680 -18%
===============================================
For the Nine Months Ended September 30, 2000
-----------------------------------------------
Segment Sales
-----------------------------------------------
Excl Impact
Total of Exited Ongoing
Motorola Businesses Operations
-----------------------------------------------
Personal Communications
Segment $ 9,789 $ - $ 9,789
Global Telecom
Solutions Segment 5,726 - 5,726
Commercial, Govt, and
Industrial Systems
Segment 3,280 - 3,280
Broadband
Communications Segment 2,363 - 2,363
Semiconductor Products
Segment 5,971 - 5,971
Integrated Electronic
Systems Segment 2,105 (16) 2,089
Other Products Segment 776 - 776
Adjustments &
Eliminations (2,494) - (2,494)
-----------------------------------------------
Segment Totals $ 27,516 $ (16) $ 27,500
===============================================
Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
Summarized below are the Company's segment operating earnings (loss)
before taxes as defined by reportable segment for the nine months
ended September 29, 2001 and September 30, 2000.
For the Nine Months Ended September 29, 2001
--------------------------------------------------
Segment Operating Earnings (Loss) before Taxes
--------------------------------------------------
Total
Pro Excl
Forma Impact Pro
Adjust- Pro of Forma
ments Forma Exited Ongoing
Total (Inc)/ Total Busin- Opera-
Motorola Exp Motorola esses tions % Sales
-------- --------------- ------------------------
Personal
Communications
Segment $ (1,895) $ 1,275 $ (620) $ - $ (620) -8%
Global Telecom
Solutions Segment (1,044) 1,178 134 - 134 3%
Commercial, Govt,
and Industrial
Systems Segment 525 (316) 209 - 209 7%
Broadband
Communications
Segment (351) 746 395 - 395 17%
Semiconductor
Products Segment (1,286) 419 (867) - (867) -23%
Integrated Electronic
Systems Segment (102) 104 2 - 2 0%
Other Products
Segment 680 (869) (189) - (189) -30%
Adjustments &
Eliminations 161 1 162 - 162 -11%
--------- ---------------- ----------------------
Segment Totals (3,312) 2,538 (774) - (774) -3%
General Corporate (346) 225 (121) - (121)
--------- ---------------- ----------------------
Earnings (Loss) Before
Income Taxes $ (3,658) $ 2,763 $ (895) $ - $ (895) -4%
========= ================ ======================
For the Nine Months Ended September 30, 2000
--------------------------------------------------
Segment Operating Earnings (Loss) before Taxes
--------------------------------------------------
Total
Pro Excl
Forma Impact Pro
Adjust- Pro of Forma
ments Forma Exited Ongoing
Total (Inc)/ Total Busin- Opera-
Motorola Exp Motorola esses tions % Sales
-------- --------------- ------------------------
Personal
Communications
Segment $ 47 $ 331 $ 378 $ - $ 378 4%
Global Telecom
Solutions Segment 674 112 786 - 786 14%
Commercial, Govt,
and Industrial
Systems Segment 307 26 333 - 333 10%
Broadband
Communications
Segment 972 (576) 396 - 396 17%
Semiconductor
Products Segment 136 370 506 - 506 8%
Integrated Electronic
Systems Segment 131 8 139 (1) 138 7%
Other Products
Segment (379) 161 (218) - (218) -28%
Adjustments &
Eliminations - - - - - 0%
-------- --------------- -----------------------
Segment Totals 1,888 432 2,320 (1) 2,319 8%
General Corporate (70) 106 36 - 36
-------- --------------- -----------------------
Earnings (Loss) Before
Income Taxes $ 1,818 $ 538 $ 2,356 $ (1) $ 2,355 9%
======== =============== =======================
CONTACT: Motorola, Inc.
Scott Wyman, 847/576-2346
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KEYWORD: ILLINOIS CALIFORNIA INTERNATIONAL GERMANY CHINA EUROPE
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS
HARDWARE
NETWORKING
TELECOMMUNICATIONS
EARNINGS
SOURCE:
Motorola,
Inc.