TeleAtlas takeover forces TomTom into red

Satellite navigation system maker TomTom posted a loss of €873m in 2008, the company said in a statement on Tuesday.

In 2007, TomTom booked net profit of almost €320m.
The loss is largely due to the €1bn write-off on the value of map maker TeleAtlas which TomTom bought for €2.9bn following a bidding war with main rival Garmin.
The company warned last month that it would not meet targets. Fourth quarter net profit, excluding the TeleAtlas write-off was €70m.
‘We expect trading conditions to continue to be challenging throughout 2009 and we are adjusting our cost base accordingly,’ said CEO Harold Goddijn.
The company has implemented a cost-cutting programme which it hopes will save approximately €60m, or 10%, in operating expenses in 2009. This will involve job losses, TomTom said.
According to the Financieele Dagblad, TomTom is also considering renegotiating its debt.

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