Motorola Sustains Third Straight Loss

Motorola Inc. reported its third consecutive quarterly loss as it continued to face declining demand for its wireless telephones and semiconductors amid the global telecommunications slowdown.

The company posted an operating loss of $153 million, or 7 cents a share, compared with a profit of $643 million, or 28 cents, a year ago, matching the average estimate of analysts polled by Thomson Financial/First Call. Sales in the quarter ended Sept. 29 dropped 22% to $7.4 billion, as expected.

Motorola’s wireless phone unit earned $19 million, returning to profitability a quarter ahead of schedule, although sales were down 16% to $2.7 billion.

The semiconductor business had a loss of $355 million, compared with a profit of $202 million a year ago, as sales fell 48%.

Including several one-time items, Motorola’s total loss was $1.4 billion, or 64 cents, compared with profit of $531 million, or 23 cents, a year ago.

Company executives plan to hold a conference call with analysts today.

Shares of Schaumburg, Ill.-based Motorola fell 67 cents to $16.72 on the New York Stock Exchange, before the earnings were released.