Shares of Thomson SA skidded to an all-time low Thursday after the French electronics company said its fourth-quarter revenue fell 4 percent due to "unsatisfactory" results from its systems business and predicted a rough start to 2008.
The company said cost cuts in the systems business were not enough to overcome a decrease in revenue for the broadcast and networks units, which provide services to media, entertainment and communications companies. Thomson said it will increase its cost cuts and other changes to restore the business's growth.
Adjusted for inflation, Thomson's revenue increased 5 percent, to $8.6 billion, for the quarter.
For the full year, Thomson swung to a loss of 23 million Euros, or $33.6 million, from a profit of 55 million euro, or $80.5 million. Adjusted for inflation, it said revenue grew 2.1 percent, and that it did not expect to exceed that mark in 2008.
"The macro-economic outlook for 2008 is uncertain and there are signs indicating lower growth, including in the industries that we serve," the company said. "The first months of the year will be particularly challenging relative to last year's comparatives."
ADRs of Thomson fell $1.91, or 15.9 percent, to $10.10 in afternoon trading. The stock reached an all-time low of $9.87 earlier in the session. The previous all-time low for Thomson shares was $10.23, set in March 2003.
ADRs, or American Depositary Receipts, are securities that allow U.S. investors to trade shares of companies based overseas. Thomson ADRs began trading in November 1999.
In afternoon trading, the Bank of New York Europe ADR Index, which tracks European stocks traded on U.S. exchanges, fell 1.35 to 167.84.
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