Global Marine Q1 Earnings Hit By Rig Downtime

Global Marine Inc.'s first quarter earnings before taxes have been cut about $5.2 million by rig downtime, company officials reported. They added that it will take a first quarter charge of about $5 million before taxes to cover the costs related to undisclosed staff cuts and office consolidations. These changes are expected to result in annual pretax savings of about $6 million, with about $4 million in savings expected to be realized this year, the company said in a statement. The company said the rig downtime, which will reduce net income about $3.6 million, was primarily related to repairs to the blowout preventer on the drillship Glomar Explorer, operating in West Africa waters for Texaco Inc.