Motorola said its net profit sank 84 percent during the fourth quarter and cautioned that its mobile phone unit will not recover as quickly as previously expected. The company reported net profits of $100 million, down from $623 million last year. Sales fell to $9.65 billion from $11.79 billion last year. Motorola's devices unit failed to make a splash over the holiday season, as the division's sales tumbled 38 percent to $4.8 billion in the fourth quarter. The handset unit had an operating loss of $388 million and shipped 40.9 million devices during the quarter.
"The recovery in Mobile Devices will take longer than expected and there is a lot more work to be done," Motorola's new CEO Greg Brown said in a statement. "Our primary focus is on improving profitability and enhancing our product portfolio in this business."
For more on Moto's Q4:
- read this article from the New York Times