Motorola to Post Disappointing Results

Motorola Inc. is expected to report its first quarterly operating loss in 13 years today, according to analysts, as the Asian economic crisis continues to erode profit, especially in its semiconductor business.

Wall Street analysts’ consensus estimate for Motorola’s second quarter is a loss of 4 cents a share, excluding a $1.95-billion charge for previously announced layoffs and consolidation plans, according to First Call Inc., which tracks corporate earnings estimates.

The company plans to report its results today after the stock market closes. A spokesman declined to comment on the estimates, citing company policy.

Motorola, a bellwether of Asian economic vitality and typically the first to kick off the quarterly earnings season, will provide analysts another look at just how deep the effects of the Asian turmoil run.

The company had warned last month that it could post an overall operating loss and said that the operating loss in its chip sector would be significant because of weakening demand and pricing pressures from Asia.

“Motorola is always the first to talk about Asia,” said Aydin Tuncer, an analyst with S&P; Equity Group. “People will look at the [earnings] call very carefully.”

Estimates were cut after the announcement and have trended downward recently as other semiconductor companies warned that results would not meet expectations, said A.G. Edwards analyst Chris Chaney.

Trade sources now expect global semiconductor revenue to decline 1.8% for the full year because of the continuing economic trouble in Asia. That contrasts with initial estimates of growth as high as 17%.

Shares of Schaumburg, Ill.-based Motorola on Monday rose $1.50 to close at $53.56 on the New York Stock Exchange.