Hughes Forecasts Bigger Loss on Higher Costs for DirecTV
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Hughes Electronics Corp. said it expects to report a larger loss than analysts have forecast this year as well as a loss next year because of higher costs at its DirecTV Japan venture. El Segundo-based Hughes, the world’s largest satellite maker, was expected to lose 33 cents a share this year and earn 3 cents in 2000, according to analysts surveyed by First Call Corp. The General Motors Corp. unit blames the performance on increased investment in DirecTV Japan, a satellite-TV service in which it holds a 42% stake, and a weaker yen, a spokesman said. In one bright spot, DirecTV expects to add far more subscribers this month than the 114,000 it gained in August, the spokesman said.
GM’s H Class shares, which track Hughes, rose 44 cents to close at $54.50 on the New York Stock Exchange.
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