Blom gets spanked by the
European debt crisis. Failing state finances allow more countries exposes map missions to Blom.
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Andreas L. Farberg
Updated: 12/21/2010 at. 3:55 p.m.
Posted: 12/21/2010 at. 2:40 p.m.
The Norwegian technology company Blom BLO maps are among
listed companies that really gets to feel the European debt crisis.
The stock has fallen 80 percent since the beginning of 2010, as a result of one
bad quarter after another.
Bad times in, all points bulletin cash, countries like Britain and Spain, leading to cuts in public
expenses that are not acutely necessary.
It stings for a company that gets 80 percent of their income from state
actors.
- We have seen that the mission has been postponed from quarter to quarter
due to weak government finances, "says CFO Lars Bakklund Blom
to E24.
Read also: Spain's bank debt at record levels
and EU, swtor credits,CARMEN, chief heralds new measures for the euro
Alerts poor fourth quarter
Blom came Tuesday with new
bad news.
Picometrys termination of an agreement with the company may have consequences
in some contractual relationship Blom to its customers, which could have
negative economic consequences for Blom beyond the income that is
occurred in the fourth quarter, according to an announcement.
At the same time it means that Blom struggling, wowgold, to meet loan conditions
company's bond of 300 million.
- The drred contracts means that we have trouble to refute
performance requirements associated with the loan, says Bakklund to E24.
It can be expensive for a map company. In the third quarter had to fork out Blom
4.5 million that bondholders would accept the new
conditions.
Woolly about liquidity
With an equity of 631 million seems Blom solid.
Still, CFO something different on the question of how solid
liquidity.
- Today's statement does not address the liquidity conditions of
bond, but the accounting, "said Bakklund.
- As you describe the company's liquidity as well
- The message today had nothing to do with liquidity, all Bakklund
will respond to E24.
Allows kostnadsbom
Blom had a fantastic 2007 with over a billion in revenues and 400
million in profits.
After that, revenue has gone down, while costs have gone the opposite way.
As a result, the company lost over 82 million in 2009.
So far in 2010, Blom has lost 65 million.
Finance Director admits that the Blom-map did not match completely with the terrain.
- We did not fall early enough, "he told E24.
Have fired 150 employees
Blom has been forced to implement severe cost cutting in 2010, and
Bakklund tells of a reduction in operating costs of 50 million.
Meanwhile, the number of employees has dropped from around 1250 at the start of the year,
around 1100
Bakklund says that several smaller players in the industry have gone under that
result of loss of income.
- So you want to be stronger among the surviving companies when the storm
is over
- Yes, that's enough, "he replies.
I hope the bottom has been reached
While Western Europe, cutting out mapping services to reduce
budget deficits, focusing more on the Blom-growing economies.
Bakklund says that especially Eastern Europe and South and Central America
area where the activity has picked up.
- In order to be able to build the infrastructure you need a map, he comments.
Nevertheless, it will be labre times ahead for Blom.
- I think the bottom could be reached now. But you never know, sugar
Financial Director.
More news at E24