Motorola Slips on Job Cuts, Lowered Outlook

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Updated from 9:33 a.m. EDT

Motorola

(MOT)

was down 2.7% in early trading after the company announced another 7,000 job cuts on top of 32,000 already announced this year. The company also lowered guidance for the fourth quarter. The news came in the wake of a

third-quarter loss posted after the close Tuesday.

Motorola said it will lose 4 to 5 cents a share in the fourth quarter on sales that would be flat to 3% higher than the third quarter's. Analysts were expecting a profit of 1 cent per share, according to Thomson Financial/First Call.

The company said its cell phones business was faring best, while semiconductor sales fell 48%.

Motorola said it expects global industrywide shipments of 380 million to 400 million mobile phones in 2001 instead of the 400 million to 425 million units expected earlier.

Late Tuesday, Motorola said it lost 7 cents a share in the third quarter, in line with analysts' estimates and down sharply from a profit of 28 cents a share in the year-ago period. Sales fell 22% to $7.41 billion from $9.49 billion last year, in line with expectations.

Also this morning, cell phone rivals

Nokia

(NOK) - Get Report

and

Ericsson

(ERICY)

were higher in early trading, with Nokia up 4.1% and Ericsson up 3%.

Wireless chip supplier

R.F. Micro Devices

(RFMD)

was up 5% in early trading.