NEW YORK (AP) — Motorola Inc. reported an unexpected quarterly profit Thursday as operating losses in its struggling mobile phone division narrowed. The company also forecast stronger-than-anticipated earnings for the current period.
Motorola shares jumped 64 cents, or 8 percent, to $8.60 in premarket trading.
The results marked Motorola’s second straight quarter in positive territory after months of heavy losses and shrinking market share in the cell phone business.
Sales continued to fall, but the company is pinning its turnaround effort on a new slate of phones powered by Google Inc.’s Android operating system. Two of the phones, including a new device called the Droid introduced by Verizon Wireless on Wednesday, will be available as the holiday season arrives.
Dovetailing with the release, Motorola offered an upbeat forecast for the quarter ending in December. It expects adjusted earnings of 7 cents to 9 cents per share, while analysts polled by Thomson Reuters expected 6 cents.
In the most recent quarter, the company based in Schaumburg, Ill., earned $12 million, or a penny per share. That compares with a loss of $397 million, or 18 cents per share, in the same quarter a year ago.
Excluding unusual items, Motorola says its adjusted earnings were 2 cents per share. Analysts had expected a break-even quarter, according to a Thomson Reuters poll.
Sales fell 27 percent to $5.4 billion from $7.5 billion a year ago. Analysts were looking for reneue of $5.5 billion. The company shipped 13.6 million phones in the third quarter, compared with 14.8 million in the second.
The company also said it has named Edward Fitzpatrick, the Motorola’s acting chief financial officer, as permanent CFO.
Business
<img src=" http://www.joplinglobeonline.com/images/zope/thursday.gif" border=0> Motorola posts 3Q profit, names permanent CFO
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