Motorola’s Mobile Phone Unit Chief Quits

Motorola Inc. announced the immediate resignation of Merle Gilmore, president of the Communications Enterprise unit, which makes the company’s mobile phones. The surprise announcement came a day after Motorola cut its earnings forecasts and projected a slower growth rate for the mobile phone unit, sending the company’s shares down 19%. The company Tuesday had reported better-than-expected earnings for the latest quarter. The Communications Enterprise unit is responsible for 70% of the company’s business. Motorola said Robert Growney, president and chief operating officer, will serve as acting president of the division. Motorola spokesman Rusty Brashear said the company would not immediately launch a formal search to replace Gilmore, but instead will evaluate its current structure first. He emphasized that the Communications Enterprise unit remains intact. Shares of Motorola, the world’s largest maker of mobile phones, fell $1.25 to close at $20.19 on the New York Stock Exchange.