Motorola 8167 User Manual - Page 5
To Our Stockholders, and Other Friends
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To Our Stockholders and Other Friends George Fisher Chairman of the Beard and Chief Executive Officer In 1990, Motorola improved the way the world communicates. Drawing on the broadest portfolio of semiconductors in the world, we introduced electronic products, systems and services designed to make our customers more productive. We announced programs that will enable people to communicate without wires, by voice or data, anywhere from inside an office to the most remote portion of the Earth. In striving to achieve our fundamental objective of Total Customer Satisfaction, we will focus on giving our worldwide customers what they want, when they want it, with Six Sigma quality. This year's report portrays some of the ways we are serving customers throughout the world, with ever improving quality. To provide the platform for superior long-term financial performance and maximize our stockholders' long-term value, our strategy focuses on four interrelated arenas of electronics - communications, components, computing and control. Financial Results While sales grew during 1990, earnings were the same as in 1989, as we continued to aggressively reduce prices and increase strategic investments, despite weaker economic conditions in some of our markets. Sales increased 13 percent to $10.88 billion from $9.62 billion in 1989. Earnings were $499 million, or $3.80 per share, compared with $498 million, or $3.83 per share, a year earlier. Net margin on sales was 4.6 percent, compared with 5.2 percent a year ago. Return on average invested capital was 9.4%, compared with 10.3% in 1989. We acknowledge the lower than desirable financial returns of 1990. Some stockholders and analysts believe we are over-investing in research and development and pursuing too many technologies in our strategic areas of interest. We respectfully disagree and believe that sustained, long-term investments in promising technologies provide the platform for solid, profitable growth. Detailed operating and financial results by our various businesses in 1990 appear on pages 19-23. We were pleased by our semiconductor performance, where we gained market share in every major region of the world. In the Communications Sector, we have taken steps to address the profitability problem, while continuing to develop new products and systems. The potential growth in the communications arena is as exciting as ever. We expect to be operating in a recessionary environment in the U.S., Canada and the U.K. during the first half of 1991. The outlook is more favorable in other parts of Europe, as well as in Asia and Japan. Our plans call for control of expenses throughout Motorola. We may make