Dividends 'Possible' This Year: Motorola Solutions CEO
Returning cash to shareholders is possible this year, Greg Brown, CEO of Motorola Solutions, told CNBC Tuesday.
“We’ll have the opportunity to organically invest or, to your point, return cash to the shareholders,” said Brown, speaking on the day that Motorola split into two companies—Motorola Solutions and Motorola Mobility Holdings .
Analysts have predicted that it will be 2012 before shareholders receive dividends from Motorola Solutions.
The company is saddled with about $300 million in pension obligations. Brown said it will pay down $100 million of that obligation this year.
In addition, he said, the company will largely have completed cost-cutting about $150 million in expenses midway through 2011.
Brown said that even though states, which are Motorola customers, are facing budget shortfalls this year, he expects sales of Motorola Solutions products to remain strong. The company sells to the federal government as well as foreign governments, and it is “well-diversified,” he added. The newly spun-off company is the worldwide leader in mission-critical communications, said Brown.
Brown said that both his company and Motorola Holdings will pursue enterprise customers, but that his firm sells to blue-collar industrial customers, and Mobility sell to white-collar corporate clients.