Schaumburg, Illinois–Motorola, Inc. has reported sales of $10.1 billion in the fourth quarter (Q4) of 2000, an increase of 11% from $9.1 billion a year earlier. Excluding special items, earnings were $335 million, or 15 cents per share, down 41% from $564 million, or 25 cents per share a year ago.

Including special items, earnings were $135 million, or 6 cents per share, compared with $323 million, or 15 cents per share a year ago. The 1999 figures are restated to reflect the merger with General Instrument Corp. and the June 1, 2000 3-for-1 stock split.

Robert L. Growney, president and chief operating officer, said, “Despite the higher sales, increases in manufacturing costs and operating expenses caused operating profits to decline. We have taken steps to reduce the cost structure in our manufacturing activities and to tightly control operating expenses. Further steps will be taken in 2001 to return the corporation to generating growth in its earnings.”

During Q4 of 2000, Motorola reported special items resulting in a net charge of $68 million pre-tax, or 9 cents per share after-tax. Charges were incurred primarily relating to the discontinuation of older wireless telephone products as part of an ongoing product portfolio simplification strategy and the downsizing of various manufacturing operations. The charges were largely offset by gains from the sale of investments during the quarter. In Q4 of 1999, the company reported special items resulting in a net charge of $351 million pre-tax, or 10 cents per share after-tax.

For the full year, sales from ongoing operations rose 17% to $37.6 billion from $32.0 billion in 1999. Including sales from businesses sold in 1999, sales increased 14% from $33.1 billion a year ago. Full-year earnings from ongoing operations, excluding special items, were $1.9 billion, or 84 cents per share, compared with $1.4 billion, or 63 cents per share a year earlier. Including the earnings from businesses sold in 1999, full-year earnings were up 29% compared with $1.5 billion, or 67 cents per share a year earlier.