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 Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Hamburg Süd Opens Office in Nanjing

On August 1, Hamburg Süd will open an office in Nanjing, China, to be headed by general manager Steven Pu. Hamburg Süd now operates from 20 locations in Greater China.

Family Finds Sunken Treasure Off Florida Coast

A Florida family scavenging for sunken treasure on a shipwreck has found the missing piece of a 300-year-old gold filigree necklace sacred to Spanish priests, officials said on Tuesday.

Kenya's Mombasa Port Traffic Up 13% in H1

Container traffic through Kenya's biggest port grew by 12.8 percent in the first six months of the year after new cargo handling infrastructure was built to shorten the turnaround time for ships.

Bulk Carrier Trends

LUSCHI Begins Dredging at ArcelorMittal’s Canal

LUSCHI announced today it will mobilize its vessel Giovanella to Espírito Santo to assist in the dredging and final disposal of accumulated sediments in the seawater storage canal of ArcelorMittal,

Grounded Freighter Refloated in Lake St. Clair

The Federal Rideau, a 656-foot freighter that had been hard aground in the downbound shipping channel of Lake St. Clair since early Sunday morning, was refloated

News Flash! Greek Shipowners Prefer Bulkers

The buying interest from Greek ship owners is focused on bulkers to an increasing extent, BIMCO said. Data from VesselsValue.com reveal that Greek owners were at

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1342 sec (7 req/sec)