Nov. 5 (Bloomberg) -- William Demant Holding A/S fell the most in seven years in Copenhagen trading after the Danish hearing-aid maker cut its forecast for the third time this year.

Demant declined 30.75 kroner, or 14 percent, to 196.25 kroner, the biggest gain since March 2001.

Sales and earnings will be ``below'' earlier expectations, the Smoerum, Denmark-based company said in a statement today. Demant in August cut its sales outlook to a range of 5.45 billion kroner ($940 million) to 5.55 billion kroner, and the operating profit target to as low as 1.15 billion kroner. The Danish company didn't give a specific outlook today.

The global economic decline led consumers to postpone purchases or buy cheaper models, the company said. To jump-start demand, Demant in September said it would introduce a dozen products and lowered the price of its Delta device in some markets. The company also said it would move beyond the most- advanced, high-technology aids so it could supply distributors with 60 percent to 70 percent of the products they seek.

The new devices won't be ``enough to offset the notable deteriorations in the broader market,'' Yi-Dan Wang, an analyst at Deutsche Bank, said in a Nov. 3 note to investors.

Demant said it will temporarily stop its share buyback program to ensure it has funding available for possible takeovers amid the worldwide financial crisis.

Third-quarter sales failed to meet expectations as the global market contracted as much as 3 percent, and purchases by the U.K.'s National Health Service stagnated after experiencing ``double-digit growth rates,'' Demant said.

Consolidation of retail chains and of purchasing by independent stores weighed on prices, while new products from Sonova Holding AG and GN Store Nord A/S increased competition.

To contact the reporter on this story: Frances Schwartzkopff in Copenhagen at fschwartzkop@bloomberg.net.

Last Updated: November 5, 2008 11:18 EST