, struggling to cut costs in the face of projected lower sales, said it will eliminate another 9,400 workers and that its first-quarter loss will be wider than expected.
The company maintained its fourth-quarter guidance, saying it continues to expect to lose 4 cents to 5 cents on an operating basis, but said the performance of its global telecom and broadband units during the period has been worse than expected. The shortfall is being offset by better-than-expected performance in its commercial, governmental and industrial, and personal communications systems segments.
The company expects sales in the fourth quarter to be flat to 3% higher than the $7.24 billion it posted in the third quarter. For the first quarter of 2002, the company sees a sequential sales decline of 14% and a pro forma loss of 11 cents to 14 cents a share, wider than the 3-cent analyst consensus. The company said it still expects to turn a profit for all of 2002.
The job cuts, which bring to nearly 50,000 the number of workers cut since Motorola employed 150,000 in August 2000, are expected to save about $865 million in 2002 and $1.1 billion a year thereafter.
The job cuts reflect Motorola's belief that sales in 2002 will be 5% to 10% lower next year than they were in 2001. It cited reductions in capital spending by its customers for telecommunications infrastructure equipment in the wireless, broadband and wire-line markets. Motorola said it "intends to achieve a cost structure that will allow it to be profitable for the full year 2002 under those circumstances."