Motorola Inc’s shares jumped $3.375 to $55 on the New York Stock Exchange yesterday after it came out with better-than-expected figures for the first quarter (CI 2889) only 63 cents a share against 61 cents this time last year. But people were looking for a bad quarter, and a rescue operation from the wireless side did the business for the company. Motorola’s announcement was also hedged about with warnings, and the company said that earnings would have been flat without a lower corporate tax rate of 35% versus 37% last year. A rise in cellular subscriber orders for the first quarter contrasted with analysts’ expectations for a decline in that business – the segment systems sector, which includes cellular phones and infrastructure, saw a 16% rise in sales to $2,700m and orders increased 23%. There was a 14% increase in semiconductor product sector sales to $2,100m but orders dipped 5%. Motorola’s net margin on sales was 5.5% in the quarter, down from 6.2% a year ago. The company warns that a mixed global economic environment, pricing pressures in the cellular telephone industry and weakening demand in semiconductor markets will continue to pressure on financial performance.
