missed lowered profit guidance, suspended its dividend and set first-quarter targets below analysts' expectations.
The struggling mobile phone maker posted a net loss of $3.6 billion, or $1.57 a share, in the fourth quarter. The loss included charges of $1.56 a share related to lost value in assets and other impairments.
Excluding the one-time items, Motorola posted an adjusted net loss of a penny a share, well below the 14 cent pro forma profit in the year-ago quarter and under the break-even expectation of analysts.
Sales for the fourth quarter were $7.1 billion, a 26% drop from the $9.6 billion level a year ago, but in line with Wall Street estimates.
For the full year, Motorola reported adjusted earnings of 2 cents a share on sales of $30.1 billion, an 18% decline from 2007.
The No. 5 phone maker behind No. 1
and others, shipped 19.2 million phones in the fourth quarter at an average selling price of $123, unchanged from the third quarter.
Looking ahead at the first quarter ending in March, Motorola says it expects its adjusted net loss to fall to about 11 cents a share, well below the 6 cent loss analysts had forecast. The disappointing outlook signals to investors that the turnaround effort hasn't begun to kick in.
The company says it is
and "thousands" of contract workers, mostly in the first quarter. In the handset division, co-CEO Sanjay Jha says he will cut 25% of the mobile phone staff in the first half of this year. Motorola had about 66,000 employees last year.
In a surprise move, Chief Financial Officer Paul Liska was replaced "immediately" by former Controller Edward Fitzpatrick for an interim period. Liska had been with Motorola nearly a year. "We appreciate the contributions Paul made toward the company's planned separation and in managing our cost-reduction activities," co-CEO Greg Brown said in a press release.
Motorola says it will push smartphones using Google's Android operating system in 2009 and in 2010 when Microsoft Windows 7 is available, work on phones with that system. Jha said production of Windows Mobile 6 phones will continue, but suggested that new phones won't be developed on that platform.
That news comes after reports that Motorola's
on its development partners like Microsoft.
Motorola shares fell 44 cents, or 10%, to $4.10 in pre-market trading Tuesday.