Motorola has reported a first-quarter operating loss for the first time in 15 years. There are also rumours that the number two mobile phone maker plans to close a factory at Bathgate, near Edinburgh.
The company said it lost $206m from ongoing operations in the first quarter, or nine cents a share, on sales of $7.8bn, excluding special items. This compares with a profit of $481m, or 21 cents a share, a year ago.
Analysts were expecting Motorola to report a loss between one and 14 cents, according to First Call. The wireless communications and semiconductor maker had warned in February that it could report a first-quarter loss if the economic slowdown persisted.
Chief operating officer Robert Growney said: "Although cash flow from businesses, including net proceeds from investments, was positive in the first quarter, this quarter was a difficult one."
"Order growth weakened across all of the company's business segments. We believe this change in customer requirements is part of a major global pattern affecting many technology companies," he added.
So far this year, Motorola has announced plans to lay off roughly 14,000 employees across all of its business units in an attempt to cut costs and streamline its operating efficiency.
Motorola executives said orders were down "very significantly" in the Americas and Europe, down "significantly" in the Asia Pacific region and up "slightly" in Japan.
The company is the first of the big three mobile phone makers to report on the latest quarter. Its rivals Nokia and Ericsson are expected to announce figures on 20 April. Both have also issued warnings for the first quarter.
Separately, the Edinburgh Evening News reported that Motorola would cut 3200 jobs as part of 22,000 positions the company will shed globally, including 7000 in the UK.
A Motorola spokesperson said the company does not comment on rumour and speculation, and that "no decisions have been made".
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