News & Editorials
"Comsat earnings fall in 3rd quarter, Nonrecurring factors, Lockheed acquisition, write-off bring loss..."
News Summary

In the October 16, 1999 "Baltimore Sun," page 10c, lead Business page, in a story by Business reporter Mark Ribbing, headlined, "Comsat earnings fall in 3rd quarter, Nonrecurring factors, Lockheed acquisition, write-off bring loss," the lead in the story was that "Comsat Corp., the satellite communications company that plans to be taken over by Bethesda neighbor Lockheed Martin Corp., said yesterday that its third-quarter earnings and revenue were down from last year. Comsat posted a net loss of $18.4 million, or 35 cents per diluted share." The story continued, "the earnings figures for the quarter were dragged down by one-time factors, including a $36 million write-off of its direct investment in ICO Global Communications Ltd. and $5.3 million in costs related to the pending acquisition by Lockheed." (The writer did not specify how much of the $5.3 million was for legal fees, lobbying or "soft" money contributions to political parties, if any.) Comsat shares closed the day on the New York Stock Exchange at $22.25, more than $20 below what Lockheed Martin paid for shares representing 49 percent of the outstnding stock less than a month ago.

The story also noted that former US Secretary of State Lawrence S. Eagleburger had decided to leave Comsat's board to make room for a director appointed by Lockheed, which has the right to name three directors. The story concluded that, "John V. Sponyoe, chief executive of Lockheed's global communications division, was named to fill the new vacancy. Congress' approval of changes in the 1962 legislation that created Comsat must be secured before Lockheed can take over the rest of the company."