Schaumburg (IL) – Motorola today reported Q4 2006 sales of $11.6 billion, up 17% from one year ago. Net earnings came in at $624, down 48% from $1.2 billion in Q4 2005. Totals ales for 2006 were $42.9 billion, up 22% from $35.3 billion in 2005. Net earnings declined 20% from $4.6 billion to $3.7 billion.
“As I said earlier this month, we are disappointed with our fourth quarter operating earnings performance. However, the company generated strong revenue growth and met or exceeded our goals in many areas during the quarter. I am confident that we remain well positioned for continued growth and success,” said Ed Zander, chairman and CEO.
Despite the fact that the company was able to increase its mobile phone sales considerably, it was the mobile devices division that was hit with the most significant decline in profits. Motorola sold 65.7 million handsets in Q4, up 47% year-over-year, and generated $7.8 billion in sales. However, operating earnings from that business dropped from $663 million to $341 million in the same time frame. According to Motorola operating earnings were below the company’s internal forecast at the start of the fourth quarter “due to an unfavorable geographical and product-tier mix.”
For the complete year, Motorola sold $217.4 million cellphones, 49% more than in the year before. The company believes that that increased cellphone sales also resulted in a 4.3% increase in market share in the segment, up to 22.2 %.