Motorola Mobility profits slump

Motorola Mobility profits slump

Operating profit at Motorola Mobility's mobile devices division slumped in its fourth quarter, turning a $72m (£45.8m) operating profit into a $70m (£44.6m) operating loss.

In its results posted overnight, the manufacturer revealed sales were $2.5bn (£1.59bn) for the division, up 5% compared to 2010. It said sales were 'impacted by the increased competitive environment'. For the full-year, sales were up 22% to $9.5bn (£6.05bn) for the division. The 2011 operating loss was $285m (£181.4m), an increase of 275% from 2010.

During the fourth quarter, it shipped 10.5 million mobile devices, including 5.3 million smartphones and 200,000 tablets. During 2011, it shipped 42.4 million mobile devices, including 18.7 million smartphones and one million tablets. Motorola said it is working closely with Google to complete its planned acquisition of Motorola Mobility 'as expeditiously as possible'. It said it currently expects to close the transaction early this year.

Across the entire company, it made a loss of $80m (£50.9m) in the fourth quarter, flat on 2010. Sales were also broadly in line with 2010 at $3.4bn (£2.16bn). For the full-year, sales were $13.1bn (£8.34bn) in 2011, up 14% on 2010. Its net loss was $249m (£158.5m), a substantial increase on the $86m (£54.7m) losses made in 2010.

Motorola Mobility chairman and CEO Sanjay Jha said: 'In the fourth quarter, we received very positive consumer response to Motorola RAZR, which combined an iconic brand with ultra-thin in an innovative smartphone. We remain energised by the proposed merger with Google and continue to focus on creating innovative technologies.' 

Written by Mobile Today
Mobile Today


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