Motorola delays handset spin-off after sobering Q4 forecast

31 Oct 2008
00:00
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Daily News

Motorola has delayed plans to spin-off is mobile phone unit after being forced to downgrade its Q4 forecast.

The company has also confirmed reports that more layoffs are on the way, announcing an intention to cull 3,000 jobs as part of an attempt to cut costs by up to $800 million in 2009.

Motorola has downgraded its profit forecast to 2-4 cents per share, if the cost-cutting measures aren't taken into consideration.

Bloomberg has calculated that market analysts predicted on average a profit of 7 cents per share.

This slump, coupled with the current harsh economic climate, will prevent the company from meeting its goal of spinning off its mobile unit by Q3 2009, company representatives have said.

The spin-off will now not take place until at least 2010.

Billionaire Carl Icahn has long been pushing for Motorola to spin-off its mobile phone business, which has been underperforming.

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