spacetoday.net: Intelsat reports lower profits

Posted: Fri, Feb 21, 2003, 8:40 AM ET (1340 GMT)
Satellite communications company Intelsat reported this week sharply lower profits in 2002 because of overall weakness in the telecommunications industry. Intelsat reported net income of $274 million in 2002, down nearly 50 percent from the $499 million in net income in 2001. Sales also fell in 2002 to $992 million from $1.1 billion in 2001. Intelsat blamed part of the profit decline in a $34.4 charge it took last fall when it cancelled the Intelsat 10-01 spacecraft that Astrium was building. Intelsat said that despite the problems with the communications industry, and satellite communications in particular, the company still recorded its 29th consecutive year of profitability. Intelsat was required to make its financial statements public for the first time by the Securities and Exchange Commission because the companies bonds have started trading publicly, although Intelsat has yet to schedule its initial public offering of stock.