Motorola says that special charges will prevent it from returning to profit this year, despite previous announcements that it would. However, the telecoms vendor’s proxy statement for 2002 declares that it expects to make a profit before exceptional items are accounted for.
Motorola’s sales for 2001 were $30 billion, down from $37.6 billion in the previous year, and even this is well below the $1.3 billion earned in 1999. The company’s handset division was buoyant this year, with sales of $10.4 billion. While the division still made a $1.8 billion pre-tax loss for the year, it still expects to generate a profit in 2002.
Motorola is the second largest manufacturer in the global wireless handsets market. The company is a major player in the growing Chinese market, with around 20% of its handsets being sold for use on the China Mobile and China Unicom networks.