Motorola warns again for weak handset sales
Motorola has issued another profit warning due to poor sales of mobile phones in the last quarter. It expects second-quarter sales of USD 8.6-8.7 billion, down from a previous estimate for flat sales versus the USD 9.4 billion reported in the first quarter. The net loss for the three months to June is estimated at USD 0.02-0.04 per share, including charges of USD 0.03-0.04 per share for restructuring and job cuts announced previously. Mototorla attributed the poor results to lower handset sales in Asia and Europe. Mobile phone shipments for the quarter are estimated at 35-36 million, down from 45.4 million in Q1. The mobile device division is expected to see its losses in the second quarter widen versus the first three months of the year, and Motorola no longer expects the division to be profitable for the full year. The other two divisions, Connected Home Solutions and Networks & Enterprises, are still performing in line with expectations. Full quarterly results will be released on 19 July.
