Motorola has completed the sale of its automotive electronics business to Continental AG for approximately US$1bn.
The move follows an announcement on 3 April in which Continental said that it would acquire Motorola's automotive electronics business and integrate the unit into its Automotive Systems division.
The former Motorola automotive unit began operating as Continental on 2 July 2006.
However Motorola reported that the assets and employees of its automotive business in China will be transferred to Continental only after the "satisfaction of certain regulatory and other customary closing conditions".
Motorola said that sales figures in its earnings release scheduled for 19 July will exclude sales of this business to Continental, which has reported sales of approximately US$400m per quarter from the first quarter of 2005 through the first quarter of 2006.
"The guidance that the company provided on 18 April of US$10.3bn - US$10.5bn for its second quarter 2006 sales included an assumption of approximately US$400m of sales for the automotive electronics business," said Motorola.
"Therefore the company's guidance for the second quarter of 2006 stated to exclude the automotive electronics business would have been US$9.9bn - US$10.1bn."
Motorola sells automotive electronics business
By Robert Jaques on Jul 5, 2006 10:00AM