New York - US mobile-phone maker Motorola Inc on Thursday reported a loss of 397 million dollars for the third quarter of 2008, down from a profit of 60 million dollars in the same quarter of 2007, despite a financial restructuring plan.

Sales fell by a more-than-expected 15 per cent to 7.5 billion dollars, Motorola reported from its headquarters in Schaumburg in the US state of Illinois.

The company's handset division suffered heavy losses.

A plan to break up the company in 2009 has now been delayed.

The third-quarter loss was the equivalent of 18 cents per share, which included one-off restructuring and write-down costs of 23 cents per share. (dpa)