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Archive for Tuesday, October 15, 2002

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October 15, 2002

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Manufacturing: Sauer-Danfoss lowers outlook for earnings

Manufacturing equipment maker Sauer-Danfoss Inc. on Monday lowered its guidance for 2002, citing both weak international markets and two large warranty claims in the third quarter.

Ames, Iowa-based Sauer-Danfoss said it now expects to report earnings per share for the full year of 30 cents to 40 cents, down from its previous guidance of 40 cents to 55 cents. For the third quarter, it expects to report a loss of 1 cent to 3 cents per share.

The company said the two warranty claims had a one-time, pre-tax impact of about $1.8 million.

Sauer-Danfoss operates a manufacturing plant in Lawrence that employs about 100 people.

Aviation: Airline snubs Boeing

EasyJet PLC has agreed in principle to buy 120 planes from European aircraft maker Airbus SAS with an option to purchase another 120 during the next decade, the budget airline announced Monday.

The deal is a snub to The Boeing Co., which has long been the preferred supplier to low-cost operators in Europe and the United States.

However, the deal may be an expensive one for Airbus. Britain's EasyJet said it will pay about 30 percent less for the airplanes than it paid for Boeing 737s almost four years ago after adjusting for inflation. This suggests a discount to the roughly $51 million price for both models.

The Seattle Post-Intelligencer reported that loss of the easyJet order is unlikely to affect employment at Boeing's 737 factory in Renton, Wash., at least for now.

Boeing is Kansas' largest private employer with a factory in Wichita.

Communications: Hughes still seeking merger with EchoStar

Hughes Electronics Corp. said Monday it would aggressively pursue its merger with EchoStar Communications Corp. as its DirecTV satellite television service continues to increase profits.

Hughes, whose proposed merger with EchoStar was rejected last week by federal regulators, said Monday that its third-quarter net loss narrowed from a year earlier.

The company posted a net loss of $13.6 million, compared with a loss of $227.2 million a year earlier. The company doesn't issue per-share figures because it is a tracking stock of General Motors Corp.

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