Motorola Earnings Up 102%

Online staff -- Electronic News, 1/20/2006

Schaumburg, Ill.-based Motorola Inc. today reported Q4 2005 sales rose 18 percent to $10.4 billion from $8.8 billion in the same quarter last year.

Q4 2005 earnings per share (EPS) was 47 cents, 68 percent higher than 28 cents in Q4 2004.

The company estimates its Q4 global mobile device market share was 19 percent, up 3.1 percent from the year-ago quarter, thanks in part to mobile device shipments of 44.7 million units.

For the full year 2005, sales were up 18 percent to $36.8 billion, compared to 2004 sales of $31.3 billion. EPS were up 102 percent to $1.82, compared to 90 cents for 2004.

For 2005, Motorola recorded mobile device shipments of 146 million units, up 40 percent over 2004.

During Q4, Motorola said it continued to strengthen its balance sheet, generating operating cash flow of $2.1 billion, its 20th consecutive quarter of positive operating cash flow. For the full year, the company generated operating cash flow of $4.6 billion and ended the year with a record net cash position of $10.5 billion.

“We are very pleased about our record fourth-quarter and full-year results. Motorola continues to deliver compelling products and solutions to our customers, who are embracing our vision of seamless mobility,” said Ed Zander, chairman and CEO of Motorola in a statement.

In the mobile devices segment, Motorola reported Q4 sales of $6.5 billion, up 30 percent from Q4 2004. Operating earnings were $663 million, compared with operating earnings of $532 million for Q4 2004. For the full year, sales in the segment increased 25 percent, operating earnings increased 27 percent, and unit shipments increased 40 percent. Sales, earnings and market share were up as a result of “must have” products that combine innovative style, leading technology and quality while enabling "must do" experiences such as mobile video and mobile music, Motorola said.

Motorola shipped 44.7 million handsets during Q4 2005, an increase of 40 percent compared to Q4 2004.

In what the company calls the high-growth markets region of Middle East, Africa, India and Southeast Asia, Motorola said it gained more than four points of share and continued to make investments to build the Motorola brand and distribution channels to drive profitable growth across price tiers.

Looking ahead to Q1, Motorola expects sales between $9.3 billion and $9.5 billion, and EPS between 27 to 29 cents per share, the company concluded.