Motorola issues profit warnings

Motorola has warned that it will report a loss for the last three months, blaming weak sales in Asia and Europe.

The US-based firm added that its main mobile phone business was likely to make a loss for the whole of 2007.

The twin profit warnings have increased speculation that the firm's chief executive Ed Zander might step down soon, analysts say.

The world's second largest mobile phone-maker, Motorola has already announced 7,500 job cuts this year.

In April it blamed losses on price competition and unpopular handsets.

Going, going?

Motorola said sales for the second quarter period, from April to June, would now be less than $8.7bn (£4.3bn).

It had previously forecast sales for the period would be around $9.4bn.

"With this type of performance and the bleak prospects facing the company for the rest of the year, I don't think Zander's tenure is going to go much further," said Ed Snyder, analyst with Charter Equity Research.

"He's toast. I think it's really close now."

"BBC Newspaper, 11 July 2007,"