Motorola said today its net profit fell 84% in the fourth quarter and warned that the recovery in its handset unit will take longer than expected. The vendor reported fourth quarter profit of US$100 million, compared with US$623 million a year earlier. Sales from the mobile device division sank 38% to US$4.8 billion in the fourth quarter and reported an operating loss of US$388 million. Total company sales fell to US$9.65 billion from US$11.79 billion a year earlier. The decline sent shares in the company sliding to US$10.55 in premarket trading, after falling 7% to US$12.32 on Tuesday.

“The recovery in mobile devices will take longer than expected and there is a lot more work to be done,” stated new CEO Greg Brown in a statement. “Our primary focus is on improving profitability and enhancing our product portfolio in this business.” Brown added that the company’s global handset market share – already down to 13% last year from 23% at the end of 2006 – is continuing to decline. “Our consistency of new product introduction is still not where it needs to be,” Brown added in a conference call. “And we still have gaps in the portfolio in areas that are experiencing high rates of growth, including 3G, China and other emerging markets.”