28 October 2010 Last updated at 16:30

Motorola's mobile phone unit returns to profit

Motorola is to split into two firms early next year

Motorola's mobile phone division has made a quarterly profit for the first time in more than three years, after it enjoyed a rise in handset sales.

The firm, which has struggled against newer rivals such as Apple, said in the three months to 30 September mobile phone sales rose 20% from a year ago.

This increase meant the unit made an operating profit of $3m (£1.9m).

Motorola's total net profit for the quarter was $109m, up from $12m in the same period last year.

Revenues at the firm rose 6% from a year ago to $5.8bn.

Early next year Motorola is to split into two separate companies.

The mobile phone division will become Motorola Mobility, while its products for corporate and government customers - such as police radios and barcode scanners - with be made by a new company called Motorola Solutions.