CHS losses unveiled in full
So much red ink on the balance sheet you'd think the accountant had slit his throat
CHS Electronics recorded losses of over $200 million for the third quarter and revealed plans to offload more subsidiaries. The distributor posted $225.3 million in net losses for the quarter ended 30 September. This compared to a profit of $6.6 million for the same period in 1998 and gives an insight into the downfall of much of the group last month. It said the figure included charges of $170.4 million related to the offloading, closure and placing into receivership of numerous subsidiaries worldwide. Sales fell slightly to $2.1 billion, from $2.2 billion the previous year. The Miami-based company said it had made a pre-tax gain of $32.7 million from the sale of its Sun Microsystems distribution business. It also cut debts to sellers by $214 million by giving back eight subsidiaries to the original owners, leaving $61.4 million owing at the end of the quarter. CHS said it was currently in talks to return an additional seven subsidiaries to their original owners, which would effectively cancel out the rest of the debt. ® Related Stories CHS Sheds Seven To Boost Confidence Computacenter Buys Metrologie
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