Motorola starts recovery in Q2

Motorola, the handset maker, has posted an unexpected second quarter profit as its cost-cutting strategy starts to take effect.

The biggest mobile company in the US reported net profit of $26m in the three months to 4 July, or 1 cent per share, compared to a $4m profit a year ago.

Net sales in the second quarter fell 32% to $5.5bn from $8bn a year ago.

During the quarter, it shipped 14.8 million handsets, which was slightly up on the 14.7 million in the first quarter. However, the figure is just over half of what it sold a year ago.

Co-chief executive Sanjay Jha says it is now expecting second half results to reflect a further improvement in earnings.

The company has so far let go of around 8,000 staff this year.

Earlier this month, Motorola appointed former Pizza Hut UK marketer William Ogle chief marketing officer for its Mobile Devices business

He is responsible for all aspects of marketing which includes advertising, interactive marketing and brand strategy, management and execution. He reports to Jha.

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