Oldelft parent issues profit warning
The parent of Dutch x-ray developer Oldelft issued a warning last month that it expects to post a net loss for 1998. Delft Instruments said that restructuring charges were the main factor in the loss. Also, orders that were expected for the end of the
The parent of Dutch x-ray developer Oldelft issued a warning last month that it expects to post a net loss for 1998. Delft Instruments said that restructuring charges were the main factor in the loss. Also, orders that were expected for the end of the year failed to materialize.
Delft expects to post an after-tax operating loss of $1.41 million for the year, compared with a profit of $7.1 million in 1997. After one-time gains and charges, Delft will post an after-tax net loss of $21.6 million. Delft recorded a one-time gain due to the sale of its Enraf-Nonius business, but that benefit was outweighed by restructuring costs.
Delft began reorganizing in October to return to profitability. The restructuring included job cuts and the sale of unprofitable businesses. Delft plans to keep its ultrasound activities as well as Oldelft, which will focus on digital products such as its Digidelca-C digital chest system. Oldelfts R&D, sales, and marketing activities were folded into those of Nucletron, which resulted in the loss of about 40 Oldelft jobs.
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