MOTOROLA the world's second largest producer of mobile phones has seen its profits triple in the first quarter of this year.

The company, which has its Global Telecom Solutions Segment at Groundwell in North Swindon, has said that higher sales of mobile phone handsets in Europe had helped it triple profits in the first quarter of 2004.

It shipped 25.3 million handsets in the past three months and seized a market share from rival mobile phone groups in Europe.

Its performance was in sharp contrast to Finnish rival Nokia, which reported flat sales of handsets in Europe amid fears that the market had become saturated.

Motorola, which has its headquarters in Illinois, USA, also reported strong demand for its latest ranges that include 16 new camera phones.

Analysts have said that Motorola's first-quarter earnings of $609 million (£344m) were better than expected and represented a major leap on the $169 million US dollars (£95m) posted last year.

There was also a significant improvement in turnover with first-quarter sales up 42 per cent at $8.6 billion (£4.86bn).

Motorola also delivered an upbeat assessment of its prospects with sales of between $8.2 billion and $8.6 billion expected over the next three months.

Motorola chairman and chief executive Ed Zander said: "We are very pleased with the strong financial performance of the first quarter."

Mr Zander added: "We are making steady progress in boosting our financial performance and creating value for our stockholders. I also believe these results reflect increasing momentum for our evolving vision of seamless mobility.

"Our growing portfolio of products, seamlessly connected, will bring voice, media, and data-rich services to people wherever they are: at home, at work, in the auto or out in the world."

Sales for the Global Telecom Solutions Segment based in Swindon were $1.3 billion, up 38 per cent compared with $29 million a year ago

The segment reported operating earnings of $119 million, (£67m) compared with $29 million (£16.3m) reported a year ago.

It also announced that it is supplying a telecommunications network system in northern Portugal for Optimus, and that it also received wireless equipment awards from leading Indian operators BSNL, MTNL and Tata Teleservices.

Anthony Osborne