Posted on 07/02/2002 12:38:24 PM PDT by anymouse
Satellite communications firm Loral Space & Communications Ltd. on Tuesday slashed earnings and revenue expectations due to the drought in telecommunications spending, and its shares plunged by nearly 40 percent to a seven-year low.
Loral's debt also took a hammering as its bonds fell 20 cents on the dollar across the board, traders said.
The New York-based company, which sells satellites and satellite communications services, said it would not be able to achieve profitability in late 2003 as previously forecast, but dismissed analyst concerns it was headed for bankruptcy or delisting.
"We're not concerned about bankruptcy ... We're not aware of concerns about delisting," Loral Chairman and Chief Executive Bernard Schwartz told analysts on a conference call.
Although the company's share price has plunged well below the New York Stock Exchange $1 minimum trading requirement, Schwartz said the stock market also looks at sales backlog and operating and financial issues, which he said are not problems.
Loral shares were down 34 cents, or nearly 35 percent, at 64 cents on Tuesday afternoon, off an earlier low at 60 cents. Its shares have fallen by 68 percent so far this year.
The company, which has been hit hard by a slump in telecommunications and a downturn in satellite demand, did not indicate how soon it foresees profitability.
Vijay Jayant, an analyst with Morgan Stanley Dean Witter, said the company's earnings warning heightened his concerns about Loral's liquidity position.
"Managing growth and liquidity has always been my concern with Loral," Jayant said. "What happens in 2003? How are they going to run their business?"
Loral said it still expected to end the year with $80 million to $90 million in cash and available credit after capital spending of $160 million.
"All our covenants are covered," Schwartz said, in response to analyst concerns about Loral's ability to meet its debt covenants. "We don't think it will be a bumpy year (regarding) covenants ... As the economy improves, we should improve."
The company said it now expects a full-year loss of $190 million, or 50 cents a share, compared with its previous forecast of a loss of 40 cents to 50 cents. The new estimate includes a charge of 11 cents per share related to preferred securities but excludes a goodwill charge.
Loral posted a loss of $276 million, or 86 cents a share, in the previous year.
BLAMES MUCH OF SHORTFALL ON ITS SKYNET BUSINESS
Loral said it expects revenue of $1.2 billion for 2002, a 15 percent increase over last year but lower than its previous forecast for a 20 percent increase.
The company blamed much of the shortfall on its Skynet satellite services business, which it said has been hurt by the economic slowdown and delay in demand for new applications and services, especially high-speed data services.
Loral still expects revenue from its satellite manufacturing business to increase 20 percent based on expectations that satellite construction will pick up later this year.
But that recovery has not yet materialized. Loral said only one order was placed across the industry for construction of a new commercial geosynchronous satellite in the last nine months, compared with a total of 25 orders during 2001.
William Kidd, an analyst with Lehman Brothers, said, "Although the manufacturing business is large, Loral's equity story is driven by the satellite services business. The fact that the Skynet guidance is so much weaker is pretty disappointing."
Loral said earnings before interest, taxes, depreciation and amortization, or EBITDA, would be down about 5 percent from 2001's $223 million, compared with previous expectations for a 15 percent increase. Analysts on average were expecting EBITDA of $271.1 million for 2002, according to research firm Multex.
Loral now expects Skynet revenue in 2002 to decline to $340 million from $389 million in 2001, contrary to expectations for single-digit growth. Skynet EBITDA is expected to decline about 15 percent from $276 million last year. (with Yukari Iwatani in Chicago)
Not really. Please read my # 78. This affects far more working class folks than greedy corporate types.
So your saying, hopefully, three thousand or more innocent, patriotic, middle class, white and blue collar employees will have to go home and tell their families they lost their jobs and must deal with job hunting/relocating in a depressed industry? See my post # 78. Hopefully your not as insensitive as your post implies.
Hillary sure did "reform" the system.
It's my understanding that Tennessee's Tax/Budget woes can be directly traced to TennCare-- AKA, "HillaryCare Lite..."
America can't say she wasn't warned.
When the headlines were about Texas-based Enron Corp., a major campaign contributor of Bush's that filed for bankruptcy in December, "Bush was trying to look the other way," Blair added. But the WorldCom case is so stunning that Bush now has no choice but to get engaged, she said.
I became aware of what was going on with China at a reunion in 96. If I tried to talk about what had been documented, even conservatives would look at me like I had the plague.
Then the Chinagate hearings came on. Inspite of being controlled by the Rat John Glenn, many of my conservative friends woke up. Most of the moderates and of course any Rat I knew never recognized the problem. Even the targeting of American Cities with their Lorar ability by the ChiComs did not wake these people up.
It was a huge learning lesson for me.
After 20 years of listening to a bunch of sniveling East Coast baby boomers crying about America while they snort their way to "enlightment"; our generation of younger, conservative people are fed up!
I would modify this sentence just a little:
After 30+ years of listening to a bunch of sniveling East and West Coast baby boomers crying about America while they snort their way to "enlightment"; our generation of younger, conservative people are fed up!
This really started in the late 1960's with the drugged out Anti Americans in the street. Then,(Like the Clintoon, the Hildebeast and all of their people and the ones who voted for them). While in power, they continued to use drugs and worked 24/7 to destroy what they had inherited when they came into power in 1993!
Then the Clintoon appointed Jake Reno. Good old Jake deballed the FBI, fired any good attornies in Justice and replaced them with pink panty wearing Anti American ACLU lawyers from socialist hell. Then Jake handed those FBI files over to the Hilldebeast.
Then the era of no NO CONTROLLING LEGAL AUTHORITY began. That is the legacy of the Bent One and his street mob of aging Anti Americans right out of the late 1960's.
When well-educated people CHOOSE poorly, well... this is what happens. Tell your "friends" that should have been voting with their feet, instead of their lips.
That would be an assumption that each can make on their own. And those donating the cash assume you are correct... those that see things differently with 'eww' have a different assumption.
Pot - Kettle
Our generation of people aren't so inclined to speak publicly. I'm forced to do so because of the nature of healthcare now. Politicians are not observant regarding the impact of their poor positions or lack of attentiveness. When possible, we appreciate the opportunity to help inform our leadership on the activity in their districts.
Regarding the stench of the 1960's "social movements", I feel that most of these activities stem from anti-American operations primarily funded by socialists. Socialists are great at capitalizing their own activities, while killing everything else around them. The financial ties between social liberal organizations, unions, and socialism is obvious to me. After all, what better way to derail the American century than to take an entire generation of young people and hook them on drugs (Woodstock/HaightAshbury anyone?)?
Is it any small wonder why the Boomers like Clinton have lost us our leadership?
Bill Clinton: "I did not inhale"
Ronald Reagan (1992): If we ever hear the Democrats quoting that passage by Lincoln and acting like they mean it, then, my friends, we will know that the opposition has really changed. Until then, we see all that rhetorical smoke, billowing out from the Democrats, well ladies and gentlemen, I'd follow the example of their nominee. Don't inhale.
Regarding the stench of the 1960's "social movements", I feel that most of these activities stem from anti-American operations primarily funded by socialists. Socialists are great at capitalizing their own activities, while killing everything else around them. The financial ties between social liberal organizations, unions, and socialism is obvious to me. After all, what better way to derail the American century than to take an entire generation of young people and hook them on drugs (Woodstock/HaightAshbury anyone?)?
I would add one other rat pack group that works 24/7 to destroy America, the enviral nazis from hell. They have kept us dependent on Opecker Oil. They have used ESA critters to rurally cleanse innocent Americans from their farms, ranches, homes, business and jobs in the name of the Spotted Owl or the Short Nosed Sucker Fish. These enviral nazis may be more dangerous to Americans that the al Qaeda thugs. al Qaeda terrorists have to work and plan terrorists acts for years. The enviral nazis enable terrorism like the uncontrolled forest fires due to their forest agendas pushed 24/7/365.
Your callous attitude is anything but heartwarming. People chose professions and employers for many reasons. The bad practices of a few corporate types are not advertised in company recruiting brochures. Loral employees are not 'bots' workng for Dr Evil, as you seem to think. And with the exception of the GOES weather satellites, Loral is a 'commercial' spacecraft company. Its clients are primarily not govt, and it could hardly be characterized as part of the govt/military complex.
Loral defense industry was bought off by Lockheed more than 7 years ago. At that point Space Systems/Loral (formerly Ford Aerospace) was the only Loral entity. Shortly afterward, it aquired Skynet (the satellite TV broadcast service company - also hardly govt work). Today SS/L (my personal thoughts on corporates in NY aside) remains the leading commercial satellite builder (some might argue next to Boeing/Hughes - but they are definitely more in with govt contracting).
Well educated people ask questions to find truth bfore making flippant comments.
"AMD is not looking for any improvements before the second half of 2003."
My sentiments EXACTLY!
(Insert salute here)
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