Wireless technology giant Motorola Inc. said on Wednesday it still sees a return to profitability in the third quarter after a year and a half of expected losses, thanks to new cost cuts and improved profit margins in its mobile-phone and semiconductor businesses.
The company, based in the Chicago suburb of Schaumburg, Illinois, said it believes it can top Wall Street's consensus estimate for a profit of 4 cents a share for 2002 and could earn as much as 15 cents a share, excluding special items.
"We believe that this (4-cent) level is not only achievable, but it can be exceeded," Motorola President Ed Breen said on a conference call with analysts.
But analysts and investors, while happy with the cost cuts, were skeptical about Motorola's optimism for the year.
"It's hard to, on just blind faith, buy into it," UBS Warburg analyst Jeffrey Schlesinger said. "You can't put a lot into that until they start to show us the leverage. We haven't seen it yet other than in (mobile phones)."
News source: Reuters - Motorola Sees Return to Profit in Third Quarter
