Motorola has revised its first-quarter sales expectations down to between $9.2 and $9.3 billion, from a previous forcast of between $10.4 and $10.6 billion, reports the Wall Street Journal. This will result in a net loss of 7-9 cents per share. Motorola has also made a number of management changes in a bid to revitalize its fortunes. Greg Brown, the head of the company’s networks and enterprise business, has been promoted to the role of president and chief operating officer, reporting to Chairman and CEO Ed Zander. Motorola director Thomas Meredith has been appointed as acting chief financial officer, replacing David Devonshire who will retire on April 1. Meredith was the CFO of Dell between 1992-2000.
From Moto’s release its full-year guidance for overall sales, profitability and operating cash flow will be “substantially below prior guidance”. The company will be profitable, but the Mobile Devices business is expected to incur an operating loss in the first quarter followed by a gradual recovery in the second half, making it profitable for the full year.
Motorola also emphasizes its committment to returning capital to shareholders as it tries to stave off a bid by billionaire investor Carl Icahn for a seat on Motorola’s board. Some examples given:
--The announcement in July 2006 of the immediate commencement of a new $4.5 billion, 36-month share repurchase program
--As announced today, the accelerated repurchase of $2.0 billion of common stock
--As announced today, the increase in aggregate size of the current share repurchase program to $7.5 billion
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