Offshore Logistics, Inc. Reports Second Quarter Charges
LAFAYETTE, La.--(BUSINESS WIRE)--Oct. 20, 1999--Offshore Logistics, Inc., (Nasdaq:OLOG) announced today that the Company will record charges of approximately $5.0 million before tax in the second fiscal quarter ended September 30, 1999, due primarily to separation benefits paid to employees in the North Sea market.
George Small, President of Offshore Logistics, said, "As we previously reported, effective August 1, 1999, contracts with two major customers in the North Sea ceased. These charges relate to Bristow's reduction of staffing levels due to the loss of these contracts as well as the general decline in other North Sea activity. The cost realignment process at Bristow is ongoing. Although we believe this is an important step in the process of lowering Bristow's cost structure to make it more competitive and profitable in the mature North Sea market place, it is likely Bristow's results and operating margins will be adversely affected for some time while we continue to review all activities with a view toward further cost realignment. Excluding these charges, we expect our second quarter results to be within the range of market analysts' expectations." |
