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 July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Cenac Marine to Christen New Vessel, Donate Barge

A ceremony will be held July 29 at Cenac Marine Services headquarters in, Houma, La. To commemorate the christening of its newest vessel, M/V Quincey Cenac, as

Concordia Maritime Posts Q2 Profit

Facing a “gradually deteriorating market,” Sweden based tanker shipping company Concordia Maritime said it was able to post a profit in Q2 2016 based on high vessel

Brown Named Bureau Veritas Communications Director

Nick Brown has been appointed Bureau Veritas’ new Communications Director, Marine & Offshore Division, the classification society announced.    Brown will take up the post from November 2,

Bulk Carrier Trends

Asia Dry Bulk-Capesize Steady as Owners Spurn Low Rates

Owners anchoring ships rather than fix at low rates. W. Australia-China capesize rates hit over two-month low. Freight rates for large capesize dry cargo ships

Scorpio Bulkers books Net Loss

USA-Monaco based bulk carrier Scorpio Bulkers has reported a loss of $24.7 million in its second quarter of 2016, pushing the carrier's deficit up to $ 83 million.

CNCo Orders Remote Monitoring for 35 Vessels

Radio Holland, a global NavCom and service company in the maritime industry, said it has concluded  a maintenance and remote monitoring agreement with The China

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Ship Electronics Winch
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: 0.0808 sec (12 req/sec)