Problems. The two good years with thin razor sales booming is over. The price war is taking its toll and there is the speculation that Nokia will be the winner in the cheap phones race. Nokia nd Motorola have been tagged as the possible buyers of Palm. Technically Palm would fit better into the Motorola package. Nokia would love to get some market share boosting in US, but the price of two billion US dollars is estimated as a high price for Palm. Motorolas problems aren't over yet. They have been fighting hard. A few months ago Motorola directors promised to take over Nokia as the market leader in 1000 days. The counting hast to start from a new base line. A new strategy is emerging.
Motorola Announces Revised Guidance for First Quarter and Actions to Improve Profitability and Shareholder Value
- Greg Brown Appointed President and Chief Operating Officer
- Thomas J. Meredith Appointed Acting Chief Financial Officer
- Accelerates Repurchase of $2.0 Billion of Common Stock; Increases Existing Share Repurchase Program to $7.5 Billion
The company also announced a series of actions designed to improve execution, drive profitable growth and enhance shareholder value. Today’s announcements include:
- Steps to strengthen the performance of the Mobile Devices business
- Appointment of Greg Brown to President and Chief Operating Officer, effective immediately
- Appointment of Thomas J. Meredith to acting Chief Financial Officer, effective April 1, and the retirement of David Devonshire
- Accelerated repurchase of $2.0 billion of common stock
- Increased existing share repurchase program to $7.5 billion
“Performance in our Mobile Devices business continues to be unacceptable, and we are committed to restoring its profitability,” said Edward J. Zander, Chairman and Chief Executive Officer of Motorola. “After a further review following the leadership change in our Mobile Devices business, we now recognize that returning the business to acceptable performance will take more time and greater effort.”
“The steps we are announcing today will enable Motorola to perform better for our shareholders, customers, partners and employees. I am confident Motorola has the right assets, brand and intellectual property, as well as a strong heritage of innovation and a strong balance sheet – all of which we will draw upon in the coming months.” added Zander.
“Motorola has a proven track record of returning capital to shareholders and we regularly review the company’s capital allocation strategy. Today’s announcement to accelerate $2.0 billion of share repurchases and increase the size of our current share repurchase program to $7.5 billion demonstrates our ongoing efforts to deliver superior shareholder value,” said Zander.