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Business briefs: May 15
Posted: Thu, May 16, 2002, 6:48 AM ET (1048 GMT)
- Lockheed Martin may sell its commercial satellite unit, the company's chairman said Wednesday. Vance Coffman said that a "strategic action of one sort or another" was necessary for the struggling unit, later adding that such an action would mean an acquisition or divestiture. Lockheed Martin is among the five largest commercial satellite manufacturers in the world, but faces stiff competition and a soft market.
- Sirius Satellite Radio announced this week a net loss of $90 million in the first quarter of 2002. The company is currently rolling out its satellite radio service, now available in over half of the United States, with full nationwide service planned by July 1. Chief competitor XM Satellite Radio has offered nationwide service since late 2001.
- Globalstar announced Wednesday that the company recorded a net loss of $129 million in the first quarter of 2002. The loss is 30 percent smaller than the same quarter of last year, and the smallest loss for the satellite phone company since 2000. Globalstar filed for Chapter 11 bankruptcy protection in February and is currently undergoing restructuring. The restructuring has taken resources away from the company's sales and marketing efforts, resulting in only a slight increase in the number of subscribers to 69,000.
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