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Escom Announced 125 Mio. DEM Loss
Escom will consolidate with a 125 Mio. DEM loss for 1995 (about 86 Mio
This was announced by the company on last friday (3/1/96). Reasons given
were the bad christmas season 1995, a weaker demand for PCs, a general fall
in prices and initial losses for several acquisitions.
High inventories of unsold products have been build up, which have to be
depreciated now. This adds heavily to the losses.
After some years of heavy growth, 1996 will become the year of
consilidation, said the company.
Some shareholders and banks will support Escom with 100 Mio DEM, 60 Mio.
will be raised by issuing extra shares, 40 Mio. will consist of bank