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Bang & Olufsen issues profit warning on weak sales

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(Globalpost/GlobalPost)

Danish high-end hi-fi brand Bang & Olufsen said Friday it would report an operating loss for its 2012-2013 financial year due to plunging sales in the third quarter.

The group presented a preliminary earnings report for the December-February period, noting a 14 percent drop in sales to 655 million kroner (88 million euros, $114 million).

As a result, it said it expected an operating loss before interest and taxes (EBIT) for 2012-2013 of 150 to 200 million kroner, instead of a previously anticipated profit.

"Bang & Olufsen has experienced a loss of momentum in the business, which has resulted in lower than expected revenue and an adverse impact on the profitability," the company said.

The audio-visual segment was most hard hit, while mobile and automobile products fared better.

B&O revised downwards its sales forecast for its full-year.

It had initially expected sales to be stronger than the 3.008 billion kroner registered in 2011-2012, but said it now expects them to fall by four to seven percent, to between 2.8 and 2.9 billion kroner.

B&O shares were down by 12.30 percent on the Copenhagen exchange in mid-afternoon trading, in a market that was off by 0.75 percent overall.

The company is scheduled to present its full third-quarter earnings report on April 5.

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BANG & OLUFSEN

http://www.globalpost.com/dispatch/news/afp/130322/bang-olufsen-issues-profit-warning-weak-sales