Motorola enjoys booming Q2 sales
20-07-2006
by Charlie Taylor

Mobile phone manufacturer Motorola posted record sales of USD10.88 billion for its second fiscal quarter, up 29 percent from the USD8.41 billion posted a year ago.

The firm recorded earnings of USD0.55 per share, up from USD0.37 per share for the corresponding second quarter of 2005.

Motorola said that it shipped 51.9 million handsets during the quarter, up 53 percent compared to the same period last year, and up 12.4 percent compared to the 46.1 million units shipped during the first quarter of 2006.

Moreover, the company, which is the second largest mobile phone manufacturer in the world, announced that its global market share has now reached 22 percent, up 4.3 percent year-on-year.

"Motorola continues to deliver excellent quarterly sales and earnings growth. With our solid financial performance and unrelenting focus on innovation and customer satisfaction, Motorola is among the fastest growing large-cap technology companies in the world," said Ed Zander, chairman and chief executive.

"In the second quarter, all of our businesses improved sales and grew profits sequentially versus the first quarter. Mobile devices led the way, setting records for unit shipments, sales and profits. With our strong balance sheet, leading technologies and proven record of growth, Motorola is well-positioned to continue creating value for its shareholders," he added.

Motorola's Mobile Devices Segment sales totalled USD7.14 billion, up 46 percent compared with the year-ago quarter while operating earnings increased to USD799 million, compared to USD493 for the same three-month period in 2005.

Networks and Enterprise Segment sales were USD2.90 billion, up 3 percent compared with the year-ago quarter and up 15 percent compared with the first three-months of 2006. However, operating earnings fell to USD386 million, as against USD494 million in the year-ago quarter. Nonetheless, operating earnings were up sequentially from the USD299 million reported for the first quarter of this year

The company's Connected Home Solutions Segment sales reached USD803 million, up 8 percent compared with the year-ago quarter and up 10 percent compared with the first quarter of 2006. Operating earnings grew to USD56 million, compared to USD33 million in the year-ago quarter.

Looking ahead, Motorola is forecasting sales of between USD10.9 billion and USD11.1 billion for its fiscal third quarter -- an increase of 20 to 23 percent on the same quarter in 2005.