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Financial Review
Motorola, Inc. and Consolidated Subsidiaries
Motorola Management's Discussion and Analysis of
Financial Condition and Results of Operations includes the
Financial Results section of the Letter to Stockholders
on pages 3 4 and the Review of Operations on pages
19-23, in addition to the following commentary. This
commentary should be read in conjunction with the
financial statements and footnotes, presented on pages
27-36, for a full understanding of Motorola's financial
position and results of operations.
Results of
Motorola's 1990 sales were $10.88 billion, up 13% from
Operation*
$9.62 billion in 1989.1988 sales were $8.25 billion. Inter-
national market sales, as measured by the locale of the
end customer, have shown strong growth, with a 24.2%
increase over 1989. The General Systems Products seg-
ment again contributed the highest rate of growth and
now represents 23% of total sales, up from 19% in 1989.
Sales in the fourth quarter were $2.93 billion as
compared to $2.65 billion in the same period of 1989, or
an 11% increase. Earnings per share were 82 cents for
the quarter as compared to $1.01 in the same period a
year earlier.
Operating profit from all segments was $951 million
in 1990, up from $895 million in 1989. In 1988 operating
profit was $804 million. The General Systems Products
segment maintained its position as Motorola's most prof-
itable segment in 1990. However, the Semiconductor
Products segment showed the most improvement in 1990.
Net earnings of $499 million in 1990 were flat as
compared to 1989, with 1990 per share earnings of $3.80
down slightly on increased shares outstanding, compared
to 1989 per share earnings of $3.83. In 1988, Motorola
earned $445 million or $3.43 per share.
Research and development expenditures increased
to $1.01 billion in 1990, up from $810 million in 1989
and $665 million in 1988. As a percent of sales,
Motorola continues to invest slightly less than 10%
of every sales dollar in product development and
technological advances.
Income taxes. The effective tax rate for 1990 of 25% is
up only slightly from the 1989 rate of 23% and down
from the 1988 rate of 27%.
1990 Net Sales by Business Segment
32% Communications Products
^ ^ ^ ^ ^ H
30% Semiconductor Products
23% General Systems Products
5% Information Systems Products
6% Government Electronic Products
4% Other Products
International Market Sales*
(In millions)
K'
$3.6 billion
W
$3.4 billion
$2.6 billion.
$599 million
$685 million
$436 million
1,689
Ms measured by the locale of the end customer.
Profit Margins
(In percent)
A Operating •
Net
87
4.6%
24
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