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Show Page E3 Sunday, January 21, 1996 THE DAILY HERALD, Provo, Utah m i n n wm By Ronald E. Yates ' , Chicago Tribune fourth-quart- CHICAGO For almost two decades, Motorola has been one of those elite companies that seemed to do everything right. In the early 1980s, it jumped on the quality bandwagon before most of its competitors even knew there was a bandwagon, and in 1988 it won the federal government's first Malcolm Baldrige National Quality Award. . It instituted a COlDOratewirlft nhilnsnnlw that called for creating "technology platforms" to spawn industries and perpetuate its;dream of a wireless world. Trailblazing products such as vastly improved two-wa- y radios, pagers and cellular telephones we're the result of that philosophy. More recently, the Schaumburg, telecommunications giant has trotted out a whole generation of sexy products, from personal communications systems and wireless " modems to its nascent $4.7 billion Iridium ed l, satellite-base- d after the company shocked Wall Street with its earnings report. Profits not only failed to meet analysts' expectations of growth, but actually fell 16 percent, to $432 million from $515 million in the period. That translated e into a profit of 72 cents per consen17 Wall below Street's than cents sus forecast. Had Motorola miscalculated? Was its vision of a wireless world flawed? Suddenly the company that could do no wrong found itself under more scrutiny than it had been since it sold its faltering color television business to Japan's Matsushita global communications scheduled for launch in 1997. system, ' For the most part, investors have gone along with Motorola Inc.'s resolute vision of a wireless world. And why not? With 1995 Sales hitting a remrH D7 hillinn nnH with cellular phones and pagers racking up annual growth rates of 40 and 50 percent, Motorola stock was among the bluest of the blue chips. But after peaking at more than $80 in September, the stock started a decline that last week turned into a dive below $45 , year-earli- er er share-mor- s. Corp. in the During a conference call with Wall Street analysts last week, fresh questions were raised about Motorola's ability to compete with a new lineup of foreign competitors that are becoming increasingly aggressive in their efforts to cut into Motorola's 50 percent share of the global cellular-phon- e market. mid-1970- Other analysts wondered about the potential of maturing U.S. markets for pagers and cellular phones. Still others wanted to know if Motorola's plan to spend billions of dollars building factories was on target at a time when increased capacity is flooding distribution channels and sales growth rates are falling off. - They pointed to the $40 million personal communications system facility announced last month for Elgin; the $750 million semiconductor plant in China; the $100 million cellular-phon- e factory in Har-- r vard, and a $3 billion wafer plant near Richmond, Va., to turn out PowerPC microprocessors. And they wondered about Motorola's plan to offer buyouts to a third of the 3,200 employees at its Boynton Beach, Fla., a plan Motorola called a pager plant measure rebalancing designed to shift more production to its newer "Flex" paging technology in Fort Worth. The brain trust at Motorola was ready for the barrage of questions. Ed Gamms, vice president of investor relations, said the company's cellular-phon-e and semiconductor businesses likely would struggle through the first half of 1996. Jim Caile, vice president of marketing for Motorola's subscriber cellular group, pointed out what many analysts already knew: The U.S. cellular telephone market has hit a temporary plateau. Not only would sales of cellular phones be affected, but sales of semiconductors, which are at the heart of the mobile phones, also would be hurt. Why? Because most people in the United States who can afford cellular phones already have them. "We're in a market that is shifting from business users, who are not particularly to consumers, who are said Morgan Stanvery ley analyst Robert Maire, who predicted slowing growth as a result. Analysts say that dynamic may change in early 1997, when cheaper personal communications systems force providers of tradi price-sensitiv- e, price-sensitive- ," million cellular users. The potential for cellular has doubled from what it was two to three years ago." But analysts point out that just because the potential for growth in the international wireless markets is enormous, that doesn't mean that Motorola will continue to dominate some 45 percent of it the way it sendee to offer lower tional cellular-phon- e about 31 cents per are which fees, monthly minute in the Chicago area. But in the meantime it will be tough sledding for Motorola and other makers of cellular phones. "In 1993 there were 15 million cdlular customers in America, and in 1994 there were nearly 25 million, a growth rate of about 63 percent." Caile said. But for 1995, industry estimates show that growth dropping to between 12 and 15 percent. Motorola concurs and warned investors that the next couple of quarters could be sluggish as U.S. demand for cellular phones continues to be flat. It's a different story, however, on the international front. "In 1995, we will end up with 80 million users worldwide," Caile said. "That's up from 54 million in 1994 and 33 million in 1993." Caile added that telecommunications still is a predominately wired industry, with wireless technology accounting for less than 2 percent of the total time people spend talking on the phone and communicating via computer and fax. That leaves substantial room for growth. "A few years ago industry forecasts were that by the year 2000 there would be 100 million cellular-phon- e users worldwide and an equal number of pager users and 60 million to 70 million two-wa- y radio customers," Caile said. "Our latest data show a much different picture. We are estimating 150 million to 200 million pager users and from 200 million to 300 does now. ' , "Motorola is not the only company with a vision of a wireless world," said Hans Buehler, an analyst with'Felbinger Ltd. in Frankfurt. "Everybody sees', the potential for growth. Telecommunications companies from Hamburg to Tokyo, are already elbowing one another for market share. This will be a bloody war, and, pnly a handful will come on top." So far, Motorola still has the biggest elbows, and it has no intention of repeating the mistakes that led it to abandon its color television business. Its 132,000 employees, scattered, over six continents, aren't just turning out cellular phones and pagers. The company. also . . makes sensors, software, digital signal processing systems, satellites, neural network technologies, modems, automotive .electronics, displays, computer, systems, ceramic comppnents, advanced power and signal devices andJiew battery.tech-nologie- s. It even manufacturesefectrQnic ballasts for fluorescing lighting Vr Motorola also is the world's player in the $154 billion global semiconductor market, trailing only Intel Corp., NEC Corp., Toshiba Ltd. and Hitachi Corp. flat-pan- el fifth-bigge- st n u hi is i3 ve business wome n sire rsgth By CAROL KLE1MAN Chicago Tribune ' : ; Center for Women Policy " Studies: Conducts feminist policy ' ; research and advocacy. Jennifer 1. Tucker is vice president; Leslie R. ' , Wolfe, president. 2000 P St. NW, "Suite 508, Washington, D.C. 20036. Phone ; Equal Rights Advocates: Pro-- '. motes employment equity through ' litigation, public policy and counseling. Emphasis on ' ' and minority women. Executive ' is Irma Herrera; managing director ' ..attorney, Judith Kurtz. 1663 Mi- K low-inco- ssion St., San Francisco, Calif. .94103. Phone line Hot 5. National Committee on Pay Equity: Researches women's 'salaries, legislation, job evalua- -' tion and the wage gap. Executive . 'director is Susan M126 -- Bianchi-San- d. Phone 20036. 202-3- 3 for National Organization Women: Advocacy and lobbying. " Its' 600 local chapters counsel on bene-S-.fit- s. I employment and health-car- e National president, Patricia .island. 1000 16th St. NW, Wash- Jngton, D.C. 20036. Phone 202- - : &1-006- 6. 'i'.' nd I National Women's Law Cen-J- :hr. Handles cases of precedent-J.''- ;. letting women's issues. are Nancy Duff Campbell Marcia Greenberger. New 'address is 11 DuPont Circle, Suite 00, Washington, D.C. 20036. Phone '. New Ways to Work: Consults on S.'york arrangements and public are Barney Ohlmst-- J and Suzanne Smith. 785 Market St., Suite 950, San Francisco, Calif. .4103. Phone 9 to 5 National Association of jtyorking Women: Works on job -- "discrimination and work-relate- d ? "health problems. Executive direc- -."tor is Ellen Bravo. 238 W. Wiscon. sin Ave., Milwaukee, Wis. 53202. Hot line Phone -- I. 0. -- poli-Sf'.t- tip r i ! ! ! y. Briceland-Bett- s. ; Phone ! 6. D.C. 20001. Toll-fre- e 5. for Wider Opportunities ' WomenNational Commission on Working Women: Focuses on '".sexual harassment and nontradi-- ; I. tional jobs. Cindy Marano is head of Wider Opportunities; Irene Natividad heads the com-!- ! 'mission. 815 15th St. NW, Wash-!- ! .ington, D.C. 20005. Phone !; 1 J i f 'if i Women Work! The National Network for Women's Employment: Helps women return to the workplace; provides technical assistance to proare Jill grams. Miller and Rubie Coles. 1625 K St. NW, Suite 300, Washington, D.C. 20006. Phone job-traini- Empowering women: That's a constant goal for Adrienne Hall, president and CEO of The Hall Group, an international marketing and communications company in Beverly Hills, Calif. Hall, formerly a advertising executive, is a founder of The Committee of 200 and of several chapters of the International Women's Forum. "There's never been a more important time for women to have access to each other, to reach out for and to get it," Hall said. support She also is a founder of Women Inc., headquartered in Sacramento, Calif. It's a national, nonprofit ' group that offers women in business access to a $150 million loan pool, health insurance, credit cards, products, services and travel discounts. The annual fee is $29. Phone Complete Package for Only $39.93 3. Hall also is a founder of Women's Professional Fastpitch, a national softball league based in Minneapolis. ideS: . AT&T i , 3812 Cellular Phone Overnight Charger 85 Minute Talk Time Battery Convenient Credit Card Billing Extended Evening and Weekend Hours Women's Economic Agenda i Project: Works on economic justice ' women. Executive lor low-incom- rr;,r...n.p-,,- f 666 11th St. ; .' U 2. Older Women's League: Its chapters nationwide work on ; pension, health and job discrimi-- ! I nation. Executive director is Debo-- J : ,; .if 5. 'NW, Washington, J i 1, 5. hh '! 'J " IJ 120 ! ! S (II M Women's Legal Defense Fund: Advocacy, public education, lobbying and litigation of employment issues. Headed by Judith Lichtman. 1875 Connecticut Ave. NW, Suite 710, Washington, D.C. 20009. Phone 'd r Ot'jO high-power- 16th St. NW, Washington, D.C. women, counseling and training. Consults with employers on equal opportunity and sexual harassment. Executive director is Anne Ladky. 22 W. Monroe St., Chicago, 111. 60603. low-inco- Phone -- a on career development, jobs for With a plethora of political attacks on women's employment rights and training opportunities, it's encouraging to know there are excellent nonprofit agencies nation- wide deeply committed to the advancement of employed women. Here are some of them: ! ' t.Vjl.lilOC e 518 director is Ethel Long-Scot- t. Calif. Oakland, 17th St.. Suite 200, 94612. Phone Women Employed: Focuses TERRY AIKEN . rft 8 INSURANCE WE'VE MOVED! TO: 280 S. MAIN PLEASANT GROVE f ' . ". 4 ft " i ..... v, . ,r-- .- '! 1 .'l'X . ATJST Wireless Services AT&T SAME GREAT SERVICE! SAME 6 PHONE: 785-352- IndsidsjlM "veninj Minutes of hours from evening 4.00 Dm to and weekend tolling per month. Phone must be activated by December 31, 1995. Offer to 8:00 am Monday. Fridcy. Weekend hows from 6:00 pm Friday 8.00 om Monday - is valid for new odivotkro only. Requires , 1 servke agreement. mkfc iW ,!y, '"Sji j i poor cmrn" |
