Motorola Inc expects its television set-top box business operating earnings to expand in 2010 even if the housing market recovery is muted, co-chief executive Greg Brown said on Tuesday.
The set-top box business is part of Motorola's home and networks business unit, for which Motorola is looking for a buyer, according to previous Reuters reports based on sources who asked not to be named.
Brown, who focuses on Motorola's businesses other than mobile devices, said that he saw no reason why the set-top box business couldn't return to operating profit margins in the double-digit percentage range.
The executive also said during a webcast of an analyst conference on Tuesday that the poor housing market was a big reason why the business had seen weakness in 2009.
"Even if you expect a very muted recovery in housing, operating earnings in the home business will expand," he said. He said the segment's long-term prospects are good.
"If I take a look at home and a three-year view I think this business continues to be a solid one," Brown said. "There's no reason why over time the home business cannot return to a double-digit operating margin business."
The executive also said that Motorola was continuing to make progress in its efforts to separate its mobile phone business from the rest of the company. This includes an examination of what would happen to itsintellectual property and the Motorola brand after a split.
"The brand is very important to both," Brown said, while noting that no final decision had been made. He said that while the network equipment business is expected to decline 10 percent next year, he sees its operating profit margins in the double digit percentage range in the same time frame.
The executive also said the company's enterprise mobility segment, which sells wireless technology to businesses, would see low single digit sales growth and sustainable margins. Motorola's shares closed up 21 cents, or 2.6 percent, at $8.22 on the New York Stock Exchange.
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