CompuServe Messages

CBM 4th quarter down

    21-Jul-89 13:06:19
Sb: CBM 4th quarter down
Fm: Steve Ahlstrom 76703,2006
To: all
Reut 07/21 COMMODORE (CBU) SEES FOURTH QUARTER LOSS WEST CHESTER, PA., JULY 21, REUTER – COMMODORE INTERNATIONAL LTD SAID IT EXPECTS TO REPORT A LOSS FOR THE FOURTH QUARTER ENDED JUNE 30, MAINLY DUE TO THE IMPACT OF A STRONGER U.S. DOLLAR ON ITS SALES AND MARGINS AND ALSO DUE TO A LARGER THAN EXPECTED DECLINE IN CONSUMER SALES CAUSED BY A SOFTENING IN SOME MAJOR MARKETS. THE COMPANY SAID IT EXPECTS EARNINGS FOR THE FULL YEAR TO BE "NOMINALLY" ABOVE FISCAL 1988'S EARNINGS BEFORE EXTRAORDINARY ITEMS OF 48.2 MLN DLRS. IN LAST YEAR'S FOURTH QUARTER, COMMODORE EARNED 12.2 MLN DLRS BEFORE EXTRAORDINARY ITEMS. THE COMPANY SAID THE FOURTH QUARTER WAS ALSO HURT BY INCREASES IN OPERATING EXPENSES REFLECTING NEW MARKETING PROGRAMS AND ITS STRATEGY OF BUILDING A NEW SALES AND MARKETING INFRASTRUCTURE. IT SAID DESPITE THE SOFTNESS IN CONSUMER MARKET SALES, SALES OF ITS AMIGA AND PC PRODUCT GROUPS TO PROFESSIONAL MARKETS ROSE IN BOTH THE FOURTH QUARTER AND THE YEAR. IT SAID IT EXPECTS TO RETURN TO PROFITABILITY IN THE FIRST QUARTER AS IT MAKES MOVES TO IMPROVE MARGINS AND PRICING AND AS THE U.S. DOLLAR STABILIZES. REUTER 0831 ———————————————————————-addition, CBU stock is down again …. CBU 11.000 – 1.750 at 1:42 on 401400 shares