July 15 (Bloomberg) -- Gerresheimer AG, the German medical- packaging company, lowered its full-year profit and sales forecasts on falling demand for glass vials and tubes from cosmetics companies and laboratories.

Earnings before interest, tax, depreciation and amortization will reach 18 percent to 18.5 percent of sales this year, down from a February target of 19 percent to 19.2 percent, Dusseldorf-based Gerresheimer said in a statement today. The company expects sales to drop as much as 3 percent.

Second-quarter net income fell 88 percent to 551,000 euros ($775,000), Gerresheimer said in a separate statement on its Web site. For the first half, Gerresheimer reported a net loss of 1.1 million euros.

“We expect a positive group result for the full year” in terms of net income, said Chief Financial Officer Hans-Juergen Wiecha on a conference call. Second-quarter results include 5.3 million euros in costs from the sale of its technical plastics unit, he said.

Gerresheimer sold the unit, which makes molded plastic components for the automobile industry, this month, ending a year long process. After failing to sell the unit by the end of 2008, Gerresheimer took an impairment loss of 30 million euros for the year.

Sales Drop

Sales in 2009 may be 3 percent less than last year’s comparable revenue of 986 million euros ($1.38 billion), which does not include the technical plastics unit, the company said. Gerresheimer previously anticipated sales growth for this year of as much as 7 percent.

“Compared with previous expectations, the cyclical markets of cosmetics and laboratory glassware show a longer-lasting fall in demand,” Gerresheimer said. Growth in pharmaceutical packaging fell short of company expectations as clients reduce inventory, the company said.

In the three months ending June 30, sales declined 4.3 percent to 264.3 million euros, with revenue from technical plastics down one third to 12.8 million euros, Gerresheimer said.

Capital investments this year will be between 85 million and 90 million euros less than the 100 million euros to 105 million euros originally planned, the company said.

This “will not have an impact on growth,” Chief Executive Officer Axel Herberg said on the call.

Gerresheimer shares rose 20 cents, or 1.3 percent, to 16 euros in Frankfurt trading at 11:33 a.m., valuing the company at 502 million euros. The stock has lost 18 percent this year.

To contact the reporter on this story: Joseph Mapother in Frankfurt at jmapother1@bloomberg.net

Last Updated: July 15, 2009 05:41 EDT