MSI Motorola Solutions Inc

Motorola Solutions Inc. said Wednesday that its third-quarter profit dropped as sales growth in North America wasn't enough to offset currency headwinds.

Adjusted earnings, however, exceeded Wall Street expectations.

Sales decreased 1%, including a $54 million impact because of foreign exchange volatility during the quarter, due in large part to weakness in Latin America.

For the fourth quarter, the company expects revenue to decline between 6% and 8%, which assumes a $65 million dent from unfavorable currency exchange.

In recent quarters, strength in North America—which accounts for more than half of the top line—had helped offset sales declines elsewhere.

And in its latest quarter, revenue from North America grew 5%. Meanwhile, weakness in international sales has led to lackluster results in both the product and services categories.

The company has leaned on its smart public safety business, through which Motorola provides communications services to police officers, among others. Public safety represents about two-thirds of Motorola's business. Motorola sees some $6 billion in possible opportunities in the fragmented and nascent public-safety market.

Overall, the company posted a profit of $115 million, or 57 cents a share, down from $147 million, or 59 cents a share, a year earlier. Excluding certain items, adjusted earnings from continuing operations rose to 82 cents a share from 62 cents a year earlier.

Revenue slipped to $1.42 billion from $1.44 billion.

Analysts surveyed by Thomson Reuters forecast adjusted per-share earnings of 73 cents a share on revenue of $1.41 billion.

In August, the company said that private-equity firm Silver Lake would take a $1 billion stake in the company.

Chicago-based Motorola Solutions is what remains of Motorola Inc., the wireless communications pioneer that has been dismantled over recent years.

In 2012, Google Inc. bought Motorola Mobility for $12.5 billion and then last year sold some of the business to China's Lenovo Group Ltd. for $2.9 billion. Last year, Motorola Solutions sold its scanner business to Zebra Technologies Corp. for $3.5 billion.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

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(END) Dow Jones Newswires

November 04, 2015 08:35 ET (13:35 GMT)

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