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Motorola Forecasts Lower 2003 Earnings, Cites SARS

Wireless communications giant Motorola said earnings for the year will be lower than previously expected, due partly to a slump in sales because of the SARS crisis.

The company said Monday that cellular handset sales in Asia fell below expectations for the second quarter. It says the SARS crisis had a greater impact than previously estimated. Motorola also said it had excess inventories from local handset manufacturers.

The company had estimated sales for the second quarter to be as high as $6.6 billion, but now said they may fall to $6.0-6.2 billion.