Motorola Solutions' 1Q Sales Climb, Profit Falls

By Josh Long

Motorola Solutions Inc., the telecommunications equipment supplier, on Wednesday revealed that its first-quarter sales rose 7 percent to $1.956 billion over the year-ago quarter, fueled by robust demand in the company’s government segment.

Government-segment sales climbed to $1.3 billion, reflecting 11 percent growth over the year-ago quarter. Motorola Solutions, based in Schaumburg, Ill., benefitted from new government contracts in the United States and abroad, including being awarded a prime contract for a Norwegian project that will enrich the company with anticipated revenues of roughly $750 million through 2026.

The enterprise segment did not fare nearly as well; sales actually fell 2 percent to $655 million. Motorola Solutions disclosed its iDEN sales declined by $31 million, but sales in the rest of the enterprise business improved thanks to growth in Asia Pacific and North America. Motorola Solutions partially cited contracts with such customers as United Airlines, TNT Express (Germany), Commonwealth Edison, Macy’s and Goya Foods.

Net earnings at Motorola Solutions decreased from $497 million in the year-ago quarter to $157 million.

In its guidance, the company forecasts that second-quarter sales will grow 6 percent year over year, with earnings per share from continuing operations of $0.65 to $0.70. Motorola Solutions also reaffirmed its 2012 guidance that sales will grow roughly 5 percent over the prior year.