Hughes Electronics issues earnings warnings

Hughes Electronics issued earnings warnings yesterday and said that its subsidiary DirecTV satellite business saw decreasing clients number, which would affect the Q2 and annual earnings. The Q2 income is expected to stand at US$1 bln, while the pre-tax profit will come around US$80-100 mln. The income in 2001 is expected to reap a rise of 20% and the pre-tax profit would stand at US$575-650 mln.

DirecTV estimated that 175,000 clients would be increased in the Q2, half less than the original expectation, and the income should reach US$1.35-1.4 bln. It also predicted that the number of the full-year clients would jump by 1.3 mln, below the original expectation of 1.5-17.08mln clients.

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