David Dorman, the former captain and chief of AT&T (T), has come to Motorola (MOT) as Chairman. He was greeted with the handset, etc. company’s stock hitting a 52–week low at $8.97. The 52-week high is $19.68. Dorman’s first job will be to keep sharp objects away from big MOT shareholder Carl Icahn.
The market is already well aware of the problems at Motorola’s handset business. Its global market share has dropped from 22% just over two years ago to about 13% now. Nokia (NOK) and Samsung have better share and Sony Ericsson is gaining.
Last year, Motorola’s handset division lost over $1 billion on revenue of $19 billion. Unit sales may drop below 30 million for Q1, much lower than sales were running last year. The loss may balloon, making the operation worth very, very little.
It has begun to dawn on investors that Motorola’s home and mobility unit, which drove much of last year’s operating income, could have a bad year in 2008. Its products, including set-top boxes, may see slowing sales in a down economy.
Motorola could end up hitting on no cylinders this year. No way to welcome the new Chairman.
Douglas A. McIntyre
Take Charge of Your Retirement: Find the Right Financial Advisor For You in Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding professional guidance—and we’ve made it easier than ever for you to connect with the right financial advisor for your unique needs.
Here’s how it works:
1️ Answer a Few Simple Questions
Tell us a bit about your goals and preferences—it only takes a few minutes!
2️ Get Your Top Advisor Matches
This tool matches you with qualified advisors who specialize in helping people like you achieve financial success.
3️ Choose Your Best Fit
Review their profiles, schedule an introductory meeting, and select the advisor who feels right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.