Motorola has reported sales of $7.5 billion in the third quarter of 2008 with a net loss of US$397 million, compared with a net income of $60 million a year ago. The firm also said that it plans to delay the long-anticipated split off of its handset division until 2010 at the earliest, and is also implementing further cost reductions with an estimated annual savings of $800 million in 2009.Sanjay Jha, Motorola’s co-chief executive officer and CEO of Mobile Devices, said, “While our strategic intent to separate the company remains intact, we are no longer targeting the third quarter of 2009, primarily due to the macro-economic environment, stresses in the financial markets and the changes underway in Mobile Devices. We have made progress on various elements of the separation plan and will continue to prepare for a potential transaction at the appropriate timeframe that serves the best interests of the company and its shareholders.
Mobile Devices segment sales were US$3.1 billion, down nearly a third (31%) compared to the year-ago quarter. The segment reported an operating loss of US$840 million, compared to an operating loss of US$248 million in the year-ago quarter. The loss this quarter includes significant charges, primarily related to decisions and plans to consolidate silicon and software platforms and simplify the product portfolio.