Motorola Says 3rd Quarter Will Lag Estimates

Motorola Inc. said third-quarter earnings will “significantly” lag estimates because of weakness in its paging business in China and in the U.S. and because of a $95-million charge for terminating its line of Macintosh computer clones. The Schaumburg, Ill.-based firm also said its expenses will be $20 million more than in the second quarter because of costs related to its Iridium project and the commercialization of the flat-panel display business. Motorola was expected to earn 61 cents a share this quarter, according to earnings estimate tracker IBES International. Motorola said its decision to discontinue at year-end its Mac clone line, called StarMax, stemmed from Apple Computer Inc.’s move to phase out licensing and limit the introduction of new technology. Motorola’s announcement, made after markets closed, sent its shares down $8.38 to $66 in third-market trading.