Motorola Posts Profit; Revenue Falls 10%

Motorola Inc. reported second-quarter net income of $119 million, but revenue fell 10% as demand slumped in Asia. The firm said sales and profit could fall this quarter.

Net income in the quarter was 5 cents a share, compared with a net loss of $2.32 billion, or $1.02, in the year-earlier period, when the company wrote down the value of some assets, Motorola said. Sales declined to $6.16 billion.

Motorola said net income in the third quarter probably would be break-even to 2 cents a share, below analysts’ estimates. Chief Executive Chris Galvin is wrestling with lower revenue in Asia, particularly China.

Motorola shares rose 28 cents, or 3%, to $9.78 on the New York Stock Exchange before the earnings announcement.