Carthum Suffers Drop On Below Average Earnings | EVE Online

Carthum Suffers Drop On Below Average Earnings

2008-10-10 - By Svarthol

Pimebeka – The Carthum Conglomerate posted poor earnings for the last quarter today, well below the expectations of most analysts, triggering a 12% decline in their stock price. Among the reasons given for the drop were significant capital losses in systems along the Republic border due to the ongoing conflict, as well as tightening of credit markets in both the State and the Empire that prevented the company from easily absorbing those losses.

However, additional stress has been placed on the company largely due to problems with its two largest shareholders, the Lai Dai Corporation and the Sarum Family. Lai Dai, one of the State's foremost military contractors, has seen much of its capital tied up in mandatory naval contracts and reforms instituted as part of the State's war footing. In the Empire, the Sarum Family has been extremely preoccupied with the coronation of the Empress and the restoration of Mekhios, the Sarum homeworld, which has suffered considerable damage as a result of the battle during the Minmatar invasion four months ago.

So far, few investors are doubting Carthum's long-term viability. "Presumably, this tightness in the market is a temporary condition, and Carthum has been one of the most dynamic companies in the Empire," said Nigirada Uoyaki, an editor at Caldari financial newsmagazine The Kimotoro Report. "However, if they can't stabilize the stock in the short-term, they may be in trouble. We may see the Conglomerate try to find new partners or make a new stock issue in an effort to shore up their working capital, which like most corporations' right now, has been significantly depleted by market condition and the ongoing war."