PowerPC manufacturer Motorola has announced that it does not expect to achieve its first-quarter 2001 sales target of $8.8 billion – and also revealed that former chairman Robert Galvin is to retire.
The company's sales target was set at the return for the same quarter last year, when its earnings were 20 cents per share. Motorola achieved sales of $37.6 billion for fiscal 2000.
The company cites growing global inventories and an economic slowdown in the US for its fall in performance. A company spokesman warned that, if the trend continues, the company can expect to report a loss for the first quarter.
The profits warning is the latest in a series of events to rock the chip maker. It announced recently that it is to lay-off 4, 000 workers in its semiconductor unit and 300 from its personal-communication sector.
The company also announced the retirement of former chairman Robert Galvin. He will leave the board of directors in the second quarter of the year, after 60 years with company.