TomTom 4Q Net Falls, Warns Of Possible Debt Covenant Breach
24 2월 2009 - 4:53PM
Dow Jones News
TomTom NV (38705.AE) Tuesday reported a fourth-quarter net loss
on lower sales and a TeleAtlas impairment charge, announced further
cost cuts and cautioned that under certain conditions it could
breach its loan covenants.
"Based upon the group's plans for 2009, management expects to
comply with the loan covenants. However, given the uncertainties in
the wider macro-economic environment and their knock-on effect on
consumer spending, scenarios can be envisaged where the loan
covenants could be breached," said TomTom Chief Executive Harold
Goddijn in a statement.
"As a result, the company continues to evaluate options aimed at
remaining within its loan covenants under a variety of possible
scenarios, which could include renegotiating the terms of the
facility in isolation or in combination with other actions," he
said.
The navigation solutions provider posted a net loss of EUR989
million for the three months to Dec. 31 compared to a net profit of
EUR107 million in the same period a year earlier.
Fourth-quarter sales fell 17% year-on-year to EUR528 million but
were in line with analysts' forecasts. Sales fell 23% from the
third-quarter when sales were EUR429 million.
Earnings before interest and tax, or Ebit, swung to a loss of
EUR994 million from a profit of EUR144 million, missing analysts'
expectations for an Ebit profit of EUR65 million.
TomTom booked a EUR1.1 billion impairment charge for TeleAtlas,
the digital-map maker it bought last year for EUR2.9 billion.
The company in January warned that it wouldn't make its 2008
revenue target and said it would take an impairment charge for
TeleAtlas.
TomTom competes in the portable navigation device market with
Cayman Islands-based Garmin Ltd. (GRMN), which Monday reported a
49% fall fourth-quarter net profit on falling sales. It also warned
of the extremely volatile environment and declined to give a 2009
outlook.
TomTom shares Monday closed at EUR3.45 and have shed 91% of
their value in the past 12 months.
Company Web site: www.tomtom.com
-By Roberta B. Cowan; Dow Jones Newswires; +3120-571-5200; roberta.cowan@dowjones.com