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Shaking Up Motorola

In Business This Week


MOTOROLA JUST CAN'T SEEM TO GET BACK IN GEAR--and investors are getting antsy. So after announcing quarterly operating earnings of just $6 million, or 1 cents a share, Chief Executive Christopher Galvin on July 9 unveiled a reorganization of his communications business. The group will have six divisions and target three customer segments. For example, the consumer unit, or Personal Communications Sector, will develop products from cellular phones to pagers. The Network Solutions Sector will provide equipment to telecoms. And a Global Telecom Solutions Group will keep Motorola's units in line with customer needs. But the move "is not going to solve all the problems," says Jeffrey Schlesinger, an analyst at UBS Securities. Wall Street will be looking for more solid results from the introduction of new Motorola digital products in mid-July.EDITED BY KELLEY HOLLAND

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