DiaSorin Falls Most in Four Years as Sales Forecast Is Cut
DiaSorin SpA (DIA), an Italian supplier of diagnostic tests, fell the most in more than four years in Milan trading after cutting its sales and profit forecasts for the year amid a “challenging” economic environment.
Earnings before interest, tax, depreciation and amortization probably will increase 20 percent to about 200 million euros ($275.3 million), and revenue should rise 11 percent to about 450 million euros, the Saluggia, Italy-based company said in a statement today. DiaSorin in August predicted profit of more than 200 million euros and sales of 465 million euros to 475 million euros.
“Even though the macroeconomic environment will continue to be complex and challenging, management believes that, in 2011, DiaSorin should be able to deliver a double-digit revenue increase,” the company said in the statement.
DiaSorin sank 10 percent to 25.40 euros at the close in Milan, giving the company a market value of 1.4 billion euros. The decline was the biggest ever for the company, which first sold shares to the public in July 2007.
Ebitda and sales will increase 9 percent and 10 percent a year, respectively, through 2015, the company said. DiaSorin, which is briefing investors and analysts today in Milan, will generate cumulative cash flow of 600 million euros in the period, the company said.
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