Motorola may sell units to raise capital

Motorola president and chief operating officer Robert Growney said following

the firm's first quarterly loss in 15 years, the firm was likely to sell off

some of its non-core businesses to raise cash, cut costs and simplify its

operations. One such group up for sale may well be the units that make

automotive electronics, police radios and other public safety products.

These operations could be sold for as much as $6 billion, Motorola is also

cutting some 22,000 jobs, 15 per cent of the global workforce, including some

3,300 semiconductor workers in Scotland. Motorola had an operating loss of $206

million compared with a profit of $481 million a year ago.

However, Growney said Motorola was unlikely to sell its semiconductor

business. Other major business units include personal communications (PCS),

broadband communications, global telecom solutions, integrated electronic

systems (IESS) and commercial, government and industrial systems (CGISS).

Sales from IESS, identified by analysts as the most vulnerable units, fell 5

per cent to $637 million. Operating profits decreased to $19 million from $46

million a year ago. The sale of Motorola's semiconductor unit could raise $8.97

billion. But Growney defended that business. "Semiconductor is strategic

for us. Communications business is strategic. So those two big lumps are

certainly not on the block," Growney said, adding that within the chip unit

some product groups may also be sold.