EuroCom Downgrades Forecast

Friday, October 29, 1999
Maritime communications equipment maker EuroCom Industries (ECI) downgraded its 1999 sales and earnings forecast last week, citing slow demand for a key product after U.S. global satellite telephone firm Iridium filed for bankruptcy protection. Issuing its second profit warning within as many months, Danish-based ECI cut its full-year turnover estimate to 580-600 million crowns ($83-85.5 million) from 630-650 million crowns. It now saw break-even on the bottom line, down from a 20-25 million crown profit forecast. By comparison, in January-June, ECI's pre-tax profit more than doubled to 47.7 million crowns. The major problem is that one of ECI's main products is that sales of a terminal designed to transmit and receive signals via global satellite telephone company Iridium's system of 66 satellites in orbit around the earth have been hit. "Sales of the Iridium satellite terminal developed by ECI were adversely impacted by the fact that the company behind Iridium filed for protection from its creditors," ECI said in a statement. "We believe that a financial restructuring of Iridium is likely, so as to allow continued operation of the 66 satellites," ECI said, adding: "a breakthrough in sales is not expected until Iridium's financial situation has been clarified." U.S. Motorola owns 18 percent of Iridium. ECI's share price has halved since Iridium's mid-August Chapter 11 bankruptcy protection filing. A European Union directive obliging all fishing vessels of a certain length to be equipped with a global distress and safety communications system (GMDSS) would take force next year, boosting sales, ECI said, noting it was a leading supplier of GMDSS equipment.

Maritime Today

The Maritime Industry's original and most viewed E-News Service

Maritime Reporter November 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Barge Master Launches Fit-for-Purpose Gangway

Press release - Barge Master has announced the official launch of a motion compensated gangway after building a track record in motion compensated lifting. ‘The

Norway's Offshore Shipping Sector Faces Bleak Year

Norwegian companies that provide supply ships and drilling rigs to the global oil industry face a bleak year ahead as contracts disappear and financing options

Maersk Venturer to Drill for Total

Maersk Drilling has been awarded a contract for the drillship Maersk Venturer with oil major Total. The contract covers one exploration well (estimated duration

Bulk Carrier Trends

Frontline 2012, Frontline Merger Completed

Frontline 2012 Ltd. has completed its previously announced merger with Frontline Ltd. , with Frontline as the surviving legal entity and Frontline 2012 becoming

Scorpio Bulkers Sells Six Ships for $227 Mln

Scorpio Bulkers Inc. has entered into agreements with unaffiliated third parties to sell two Capesize dry bulk vessels and four newbuilding Capesize dry bulk vessels

Opportunities for Growth as Chinese Economy Evolves

The global breakbulk and heavy-lift markets have had to navigate choppy waters in recent years.   Not necessarily due to a shortage of freight, but as a consequence of unsustainably low freight rates.

Maritime Contracts Naval Architecture Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0958 sec (10 req/sec)