Wireless communications and semiconductor maker Motorola Incorporated yesterday reported a larger-than-expected second-quarter operating profit of $273 million (€268.27 million), bolstered by growth in semiconductors and a recovery in Asian markets.

The maker of wireless phones, pagers and computer chips, which employs 1,500 people in its Dublin and Cork plants, said it earned 44 cents per share before one-time items, well above last year's profit of $6 million, or one cent per share, excluding unusual items.

The earnings-per-share topped Wall Street expectations of 41 cents per share, according to First Call Corp., the research firm that tracks analysts' estimates. Second-quarter sales rose to $7.5 billion from $7 billion in the same period last year.

Motorola recorded pre-tax net charges of $94 million, or 11 cents per share, including one-time gains and a charge of $126 million to write down the value of the Iridium World Communications Ltd bonds that it owns.

Motorola said it may take additional charges in the third quarter to cover its exposure to Iridium, the troubled global satellite communications company.

Including the charges, second-quarter earnings were $206 million, or 33 cents per share, compared with a loss of $1.3 billion, or $2.22 per share, in the second quarter of 1998.

While analogue phone sales declined significantly, sales of digital phones increased significantly and represented 87 per cent of all wireless phone sales in the quarter.

"The improved results stem from good growth in semiconductors and very significant growth in digital wireless telephones, as well as a recovery in Asian markets and the benefits of the company's profit improvement programmes," president and chief operating officer Mr Robert Growney said in a statement.