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WEAK BUSINESS IN INDIA, US TO CUT NORSK DATA PROFITS BY $15m

The years of regular 30% to 50% growth in sales and profits at Norwegian minimaker Norsk Data A/S could not last forever and they have come to an emphatic halt this year. Over the weekend, the company warned that a decision by its partner Electronics Corp of India not to move on to the new generation ND5000 machines but to stick with the ND500, coupled with a slowdown in US orders for the ND500s used in General Dynamics F-16 fighter simulators, was likely to cut second half pre-tax profits by $15m. Sales outside Europe, almost all accounted for by the US and India, are likely to plunge 50% this year to $22.5m. As a result, pre-tax for the year is likely to be about flat with the $73m achieved last year – the company’s target range is now $67.5m to $75m compared with analysts’ forecasts of $82.5m to $90m. The company says that in Europe, business is on target for 25% to 30% growth.

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CBR Staff Writer

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