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

People & Company News

Aberdeen Pupils Peek into Subsea Oil & Gas Technology

Pupils at an Aberdeen primary school were given a rare insight into the depths of the oil and gas industry’s subsea sector after getting to sit in the driving

AVEVA, DNV GL's Sesam Integration Cuts Cost

Integration of Aveva and DNV GL's Sesam Reduces Costs in Maritime and Offshore Engineering. Engineers designing ship hulls and offshore floaters can now save

FORAN for Pertamina's Future Ships

FORAN has been chosen by state-owned company PERTAMINA to review the design of their future oil product carrier ships, under construction in a shipyard with the FORAN System.

Bulk Carrier Trends

MSC Geneva Gets Fatter

A revolutionary new option to scrapping for younger panamax containerships deemed too small for a tradelane involves widening the vessel rather than adding length.

Grimaldi Orders Three PCTCs

After signing an order for the construction of five new ships two weeks ago, the Italian shipowner  Grimaldi Group has signed another contract for the construction

Is It Too Late To Tangle With Spike in Shipping Market

A series of interesting and extreme price spikes is going on in the shipping market today, says Clarksons, provider of global shipping and offshore market intelligence.

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Repair Ship Simulators 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: 0.2384 sec (4 req/sec)