Analysts say Motorola needs a better range of phones

Warning that recovery in its handset unit will take longer than expected, it made a net profit of $100m (�51m) for the last three months of 2007.

This compares with a profit of $623m for the same fourth quarter period a year earlier. The US giant's mobile phone sales were down by 38%.

Motorola parted company with former chief executive Ed Zander on 1 January.

Mr Zander insisted that his departure was of his own choosing, and that he simply wanted to spend more time with his family.

His successor, Greg Brown, said "there is a lot more work to be done" to turnaround the mobile phone unit.

"Our primary focus is on improving profitability and enhancing our product portfolio in this business," he added.

Losses

Motorola's overall sales between October and December fell 18% from a year earlier to $965m.

The 38% fall in sales at the mobile phone division mean that the unit - the largest in the company - made an operating loss of $388m.

Motorola's other business divisions performed better, with sales of its TV set-top boxes and modems up 11%.