s t a t e m e n t s   o f
c o n s o l i d a t e d   e a r n i n g s 

                                                          Motorola, Inc. and
(In millions, except per share amounts)            Consolidated Subsidiaries
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Years ended December 31                             1996      1995      1994
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Net sales                                        $27,973   $27,037   $22,245
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Costs and expenses
  Manufacturing and other costs of sales          18,990    17,545    13,760
  Selling, general and administrative expenses     4,715     4,642     4,381
  Depreciation expense                             2,308     1,919     1,525
  Interest expense, net                              185       149       142
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    Total costs and expenses                      26,198    24,255    19,808
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Earnings before income taxes                        1775     2,782     2,437
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Income taxes provided on earnings                    621     1,001       877
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Net earnings                                      $1,154    $1,781    $1,560
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Fully diluted net earnings per common and
  common equivalent share* **                      $1.90     $2.93     $2.65
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Fully diluted average common and common
  equivalent shares outstanding* **                609.6     609.8     592.7
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*Primary earnings per common and common equivalent share were the same as fully diluted for all years shown, except in 1994 when they were one cent higher than fully diluted.
Average primary common and common equivalent shares outstanding for 1996, 1995 and 1994 were 609.0, 609.7 and 591.7, respectively (which includes the dilutive effects of the convertible zero coupon notes and the outstanding stock options).
**Includes adjustments for the 1994 two-for-one stock split effected in the form of a 100 percent stock dividend.



s t a t e m e n t s   o f
c o n s o l i d a t e d   s t o c k h o l d e r ' s   e q u i t y 

                                                  Common Stock
                                                 and Additional
(In millions, except per share amounts)         Paid-in Capital*       Retained Earnings
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Years ended December 31                      1996    1995    1994    1996    1995    1994
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Balances at January 1                      $3,542  $3,138  $1,875  $7,461  $5,917  $4,534
 Net earnings                                  --      --      --   1,154   1,781   1,560    
 Conversion of zero coupon notes                7      23     251      --      --      --
 Stock issuance**                              --      --     973      --      --      --
 Unrealized net gain (loss) on
   certain investments                       (86)     328     (8)      --      --      --
 Stock options exercised and other              7      35      47      --      --      --
 Dividends declared ($.46 per share 
   in 1996, $.40 in 1995 and $.31 in 1994)     --      --      --   (272)   (237)   (177)
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Balances at December 31                    $3,452  $3,524  $3,138  $8,343  $7,461  $5,917
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*1994 Stock Split: An amount equal to the par value of the additional shares issued has been transferred from additional paid-in capital to common stock due to the two-for-one stock split effected in the form of a 100 percent stock dividend. All references to shares outstanding, dividends and per share amounts during 1994 and 1993 have been adjusted on a retroactive basis.
**During November 1994, the Company completed a public equity offering of 17.1 million shares of common stock.

See accompanying condensed notes to consolidated financial statements.


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Financial highlights || To our stockholders and other friends || Motorola at a glance || Condensed consolidated financial statements || Condensed notes to consolidated financial statements || Five year financial summary || Directors and management board of Motorola, Inc. || CEO quality awards and Dan Noble fellows || Stockholder reference information