Motorola posts £2.5bn loss

Motorola has reported a net loss of $3.6 billion (£2.5 billion) for the fourth quarter, attributing much of it to tax charges and goodwill write-downs.

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Motorola has reported a net loss of $3.6 billion (£2.5 billion) for the fourth quarter, attributing much of it to tax charges and goodwill write-downs.

Three weeks ago, the firm announced it was cutting 4,000 jobs, in addition to the 3,000 announced in the final quarter of 2008.

The company has now reported revenue for the quarter of $7.14 billion, down 26 percent from a year earlier, with the biggest decline in its mobile phone division, where revenue fell 51 percent to $2.35 billion.

Charges relating to business reorganisation accounted for a loss of $0.05 per share. Motorola says it expects these and other reorganisation measures will help it save around $1.5 billion this year.

Looking ahead, Motorola said that through the first quarter it expected losses to continue at between $0.10 and $0.12 per share, excluding the cost of reorganisation, but did not comment on the period after that. Analysts polled by Thomson Reuters expected a per share loss $0.06 for the first quarter.

The company has suspended the payment of dividends until further notice.

Motorola also said it is looking for a new chief financial officer, after the previous post holder, Paul J. Liska, resigned. The company has appointed its corporate controller Edward J. Fitzpatrick as interim CFO.

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