Motorola Solutions growing despite European slowdown
STAFF and WIRE reports July 25, 2012 11:16AM
Updated: July 25, 2012 6:22PM
Motorola Solutions Inc., the Schaumburg-based seller of police radios and bar-code scanners, said Wednesday it scored a record second quarter, with operating earnings up 15 percent and earnings-per-share up 30 percent, and it raised its dividend and full-year sales outlook.
Though net income declined from a year ago, that comparison included Motorola Solution’s sale in April 2011 of its networks division to Nokia Siemens Networks — a one-time event.
Revenue grew thanks to strong demand from the company’s government customers.
“We are growing in every region worldwide, and North America is a tremendous growth area,” CEO Greg Brown said.
Brown said although state and local governments are under budget pressures, they continue to spend for public safety, primarily to make their radios more efficient and interoperable and to stay up-to-date with the latest products.
The company’s stock price jumped 6.4 percent in mid-afternoon trading, to $48.19.
Motorola Solutions earned $157 million, or 49 cents per share, in the January-March period. The adjusted earnings were 59 cents per share in the latest quarter, up from 54 cents per share a year earlier.
Revenue jumped 7 percent to $1.96 billion from $1.83 billion.
Sales in the government division increased 11 percent to $1.3 billion, while sales in the corporate segment fell 2 percent to $655 million.
Motorola Solutions now expects its 2012 revenue growth to be as high as 6 percent, up from its previous estimate of 5 percent.
Motorola Solutions will buy back $2 billion in stock on top of $3 billion the company already purchased after last year’s board of directors authorization.
Motorola Solutions is half of the former Motorola Inc., which split into two companies in January 2011.
— Contributing: Business Reporter Sandra Guy