Motorola expects losses to grow in second quarter

Motorola says it expects its loss per share in the second quarter of its financial year to be wider than the 9 cent first quarter loss it reported last night.

President and chief operating officer Robert Growney says the widening loss in the second quarter is due to operating profit margins, which will not increase as previously anticipated.

Other factors identified by Motorola for the growing losses include the deferred payment of "incentive compensation packages" and lower manufacturing margins.

The company adds that it expects an "upturn in sales and profitability" in the second half of 2001.

It says although sales will still be lower than last year, this upturn will result in "modest but positive annual earnings per share in 2001".