Reuters. Loral Space sees loss deepen for the year
Thursday July 29, 1:20 pm Eastern Time
NEW YORK, July 29 (Reuters) - Loral Space & Communications Ltd. (NYSE:LOR -
news) posted a narrowing second quarter loss on Thursday, but said its net loss would
deepen in line with the company's forecast for the year.
Loral, which builds satellites and provides a range of satellite-based telecommunications
services, reported a second quarter loss of 17 cents on revenues of $345.4 million, compared with a loss of 27 cents on
revenues of $330.1 million the prior year.
Wall Street expected the company to report a loss per share for the quarter of 23 cents.
''While reported EBITDA is expected to improve in the second half, Loral's net loss will deepen, consistent with our forecast
for the year,'' said Bernard Schwartz, chairman and chief executive officer.
''The expected loss is attributable to increased interest and depreciation expenses, as well as to the planned costs of
deployment as Globalstar service gets underway, and to increased expenses at Loral's Globalstar service ventures in Brazil,
Mexico, Russia and Canada.''
Loral is the largest investor in Globalstar, which is building a $2.6 billion network of low-earth-orbit satellites to provide
global communication services.
Globalstar's network development was beset by delays and mishaps, including the loss of a dozen satellites in a rocket crash
in Sept. 1998.
Schwartz also said bookings declined for the second quarter to $283 million, before eliminations, down from $832 million in
a particularly strong quarter a year earlier, but added that, ''both backlog and bookings are expected to show
year-over-year improvement at the end of the year.''
The company said it remains on track to meet previously announced earnings per share target.
Analysts anticipate the company will report a loss of $1.03 per share for the full year.
Loral Space Communications designs, makes and integrates telecommunications, weather and direct broadcast satellites.
Shares were off 31 cents at $18.87 on Thursday.
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