Eurocom Industries News

EuroCom Industries (ECI) improved its earnings capacity in H1 2003. Revenue totalled DKK 191 million (+4%) and EBIT was DKK 23 million, up from a loss of DKK 4 million in H1 2002. Profit before tax was DKK 20 million, up from a loss of DKK 10 million last year. The results are in line with ECI's forecasts and, in spite of rather difficult market conditions, performance was in line with the company's plans. Profit before tax for 2003 is expected to be DKK 25-35 million. At its ordinary meeting held today, the Board of Directors of EuroCom Industries A/S (ECI) considered and adopted the company's financial statements for the six months ended 30 June 2003. The interim financial statements are unaudited.

EMG EuroMarine Electronics GmbH sold its 88.6-percent stake in ECI EuroCom Industries A/S, Ålborg, Denmark to Denmark’s Thrane & Thrane A/S for approximately EUR 14 million. EuroCom Industries is among the leading suppliers of marine telecommunication electronics. With its workforce of 225, it generated in 2003 sales of EUR 47.5 million and, after the successful turnaround in 2003, an EBIT of EUR 4.6 million. By acquiring the majority stake in EuroCom Industries, Thrane & Thrane rounds off its portfolio of maritime communication products.

Thrane & Thrane is extending its size through acquisition in an effort to be positioned as the world’s leading manufacturer of equipment for mobile satellite communication. The company acquired EuroCom Industries (Denmark), a company whose products are sold under the Sailor and Skanti brands. “The acquisition of EuroCom Industries strengthens Thrane & Thrane’s position as the world’s leading manufacturer of maritime communication equipment,” said Henrik Lunde, CEO, Thrane & Thrane. “Our customers and distribution partners will now be offered a true “one-stop-shopping” experience that can meet virtually all communication needs from the professional maritime community.

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…