TULSA, Okla. — In an effort to improve its financial strength and flexibility, marine electronics manufacturer Navico has reached a financial agreement between its owners and lenders to increase equity and convertible debt by $198.9 million, according to a release from the company.
“We believe the company has a great future and with the new financial commitment from its owners and lenders, the company can focus on doing the right things through the current market downturn and come out of it with ever better products, an improved customer service organization and a more effective supply chain,” Hugo Maurstad, chairman of Navico’s board, said in the release.
Navico has also made several significant operational changes, it said, with different companies Navico has acquired merging into a single global company.
“During the last two years, Navico has reduced the number of its manufacturing facilities and achieved an impressive 61 per cent improvement in manufacturing efficiency,” according to the release. “Furthermore, the operating cost base has been reduced by 50 per cent as a result of its latest savings programmes.”
Finally, the company says it has made a significant investment in product development.
“In addition to the introduction of several new innovative and award winning product ranges this year … Navico plans to launch many other new and innovative products throughout 2009-2011 as a result of a US$ 50 million investment in product development,” Leif Ottosson, Navico CEO and president, said in the release.