New York - Mobile device maker Motorola Inc. on Tuesday reported a net loss for 2008, as the company continued to report troubles in selling its handheld devices.

For the year, the company reported a loss of 4.2 billion dollars. That compares to a loss of 49 million dollars in 2007. For the final quarter of 2008, the company reported 3.6 billion dollars in losses, versus earnings of 100 million dollars for the same period in 2007.

Net sales also slumped, with the company reporting 30.1 billion dollars of sales for 2008, versus 36.6 billion dollars in 2007. Fourth-quarter sales registered at 7.1 billion dollars, as compared to 9.6 billion dollars for the fourth quarter of 2007.

Although the company had warned of potential losses in its fourth quarter report, the figures were bleaker than had been anticipated.

"In light of the economic climate and challenges we face, we have implemented aggressive measures to reduce costs and improve financial flexibility," said Greg Brown, president and co-chief executive officer, and Sanjay Jha, co-chief executive officer and CEO of Mobile Devices, in a statement.

They said the cost-cutting programs they hope to implement should equal savings of about 1.5 billion dollars in 2009.

Especially hard hit was Mobile Devices, which focuses on the company's core product: mobile phones. It reported sales of 2.35 billion dollars for the fourth quarter of 2008, down 51 per cent from the same period a year earlier. It reported sales of 19.2 million mobile devices, down from 40 million units in the same quarter in 2007.

Motorola also announced that its board of directors had decided Tuesday to suspend the declaration of quarterly cash dividends in an effort to boost its balance sheet and allow it more financial flexibility.

However, the company said it still expects to make a loss in the first quarter of 2009. Motorola recently announced plans to cut 4,000 positions. (dpa)