Motorola seeks profit boost

1 August 2007
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02 August 2007

Motorola is turning to its procurement function to increase the revenues of its mobile phone business.

The telecoms giant has appointed a new chief procurement officer, and promoted two other senior purchasing executives. Judy Baranowski has taken over as CPO, replacing Rita Lane, who has been promoted from CPO to lead the company's Integrated Supply Chain (ISC).

The ISC has responsibility for procurement, manufacturing and new product introduction. Lane has been the CPO and corporate vice-president at the company since June 2006.

Baranowski was the group's vice-president of quality in the supply chain, and formerly worked as a consultant. She also gained experience of the supply chain at manufacturer Honeywell, and at Ford.

The company has also promoted Stu Reed, executive vice-president of the ISC, to take over as president of its mobile devices business. He will continue to report to Greg Brown, president and chief operating officer. Reed had been in charge of ISC at Motorola since 2005.

Last month the company estimated its mobile phone division was unlikely to make a profit this year. Sales in the division were 40 per cent lower than at the same time last year.

Brown said: "We are confident that under Stu's leadership we can restore the profitability and performance of this important business."

It has also announced plans to save $1 billion (£487 million) by 2008 through redundancies and "aggressive cost controls".

SMaug2007

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