Motorola issues earnings warning

The company's previous guidance for the fourth quarter of 2002 was for sales of approximately $7.5 billion.

Calculated in accordance with generally accepted accounting principles (GAAP), which does not exclude special items, the company now expects to achieve earnings of approximately 4 cents per share in the fourth quarter of 2002. Estimated GAAP earnings for the fourth quarter of 2002 include net charges of approximately $200 million relating to previously announced restructuring actions.

"However, it is extremely difficult to predict any additional special items of expense or income that may be required during the fourth quarter of 2002. Accordingly, these estimates do not contemplate additional special items or unforeseen political or economic disruptions."

On an operating basis, excluding net special items, the company now expects to achieve earnings of approximately 10 cents per share in the fourth quarter of 2002.

The company currently expects sales for the full year 2003 to be approximately $27.5 billion. The company now believes that if sales are at this level, earnings of 40 cents per share for the full year 2003 are achievable, barring any unforeseen political or economic disruptions or other events that cause the company to record special items of expense or income.

Previously, Motorola said it expected this quarter's GAAP earnings to be approximately 10 cents per share and operating earnings, excluding special items, of approximately 14 cents per share. "The company's previous guidance for the full year 2003 was for sales of approximately $29 billion, and, with sales at that level, that the consensus estimate of earnings of 45 cents per share was achievable.

"The company's lowered revenue and earnings guidance is driven by slowing industry demand in a number of the company's end markets, in particular the wireless infrastructure, broadband and semiconductor businesses," it said.