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Motorola posts strong profit

The company, based in the Chicago suburb of Schaumburg, Illinois, reported a first-quarter net profit of $609 million, or 25 cents a share, compared with $169 million, or 7 cents a share, in the year-ago quarter.
/ Source: Reuters

Motorola Inc., the world’s second-largest maker of cell phones, on Tuesday posted a stronger-than-expected quarterly profit as the company said it boosted its share of the global handset market.

Motorola also forecast higher-than-expected results in the current quarter, its second.

The company, based in the Chicago suburb of Schaumburg, Illinois, reported a first-quarter net profit of $609 million, or 25 cents a share, compared with $169 million, or 7 cents a share, in the year-ago quarter.

Excluding one-time items, it earned 18 cents a share, blowing past analysts’ expectations of 7 cents a share, according to Reuters Research, a unit of Reuters Group Plc.

Sales in the quarter rose to $8.56 billion, far above the $6.76 billion analysts were expecting according to Reuters Research. Motorola’s sales in the year-ago quarter were $6.04 billion, while they were $8.02 billion in the preceding quarter.

Motorola said in January it expected to earn 5 cents to 7 cents a share on sales of $6.4 billion to $6.8 billion.

Motorola’s shares surged to $20 on the INET electronic brokerage system in after-hours trading following its earnings announcement. Its shares jumped from $16.22 at its Tuesday close on the New York Stock Exchange.