Motorola realigns businesses ahead of split
PHILADELPHIA (AP) – Motorola Inc. has realigned its four major businesses as it gets ready to split into two publicly traded companies by the first quarter of 2011, according to a Securities and Exchange Commission filing made Monday.
Its mobile devices division – which makes cell phones – and home unit will fall under the purview of one company with Sanjay Kha, co-chief executive of Motorola, as its CEO. The home unit makes such things as cable TV set-top boxes.
Net sales of the mobile devices unit came to $7.15 billion in 2009, but it posted an operating loss of $1.2 billion. The home division had net sales of $3.9 billion and operating profit of $16 million.
The second company will comprise Motorola's enterprise mobility and networks businesses. Enterprise mobility handles such products as two-way radios, while wireless networks systems fall under the networks division. Gregory Brown, co-CEO of Motorola, will be CEO of this company.
Net sales for enterprise mobility were $7 billion in 2009, and networks brought in $4.1 billion. Operating profit was $714 million and $366 million, respectively.
Shares of Motorola, based in Schaumburg, Ill., rose 10 cents to close at $7.16.