Motorola Inc. the wireless communications and semiconductor
maker reported a higher than expected second quarter operating profit of $273 million or
44 cents a share, from $6 million or 1 cent in the same quarter of the previous year.
Strong growth in semiconductors and a recovery in Asian markets reinforce this success.
Earnings rose on sales of digital cell-phones and a turn-around in its semiconductor
business.
Motorola the maker of wireless phones, pagers, computer
chips and also the No. 3 semiconductor maker was expected to earn 41 cents, the average
estimate of analysts from First Call Corp.
Under Mr. Chris Galvin, the Chief Executive, Motorola cut
$1 billion in costs from its semiconductor unit last year.
It is also benefiting from an expected 12 per cent rise in
worldwide chip sales, compared with 1998's 8.4 per cent drop. New phone models are helping
Motorola compete with No. 1 Nokia Oyj.
However, Motorola's stock fell as revenues came in shy of
analysts' expectations and the company warned of possible third-quarter charges related to
Iridium World Communications Ltd., the global satellite phone company that Motorola
bankrolled. The shares were off $1.50 at $95.00 on Instinet after falling $2.50 to $96.50
on the New York Stock Exchange.