PARIS: Thomson today posted a net loss of 1.9 billion euros ($2.4 billion U.S.) for 2008, compared to a loss of 23 million euros for the previous year ($33.8 million). The French tech giant’s results were dragged down by a $2 billion write-down on goodwill and restructuring. Thomson suspended dividends in 2007.
Thomson ended the year with net debt of around $2.66 billion and $973 million in cash. The company estimated it needed around $316 million to continue managing operations.
The company in January warned that it expected to breach a loan covenant and trigger early repayment. At the time, it also put the Grass Valley and digital signage busineses up for sale. Both generated around $1.3 billion in combined sales for Thomson in 2008.
American Deposit Receipts of Thomson (NYSE: TMS) hit an all-time low in trading today on the news, dropping to 51 cents by early afternoon.
No buyer has yet been identified for Grass Valley. – Deborah D. McAdams
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