Zumtobel Declines in Vienna After Cutting 2011/12 Guidance
Zumtobel fell 5.2 percent to 12.55 euros at the 5:30 p.m. close of trading in Vienna, its biggest decline since Nov. 22.
“Against this backdrop, the Management Board can no longer confirm the previous guidance for the 2011/12 financial year, which called for an increase of approximately 10 percent in Group revenues and an adjusted Ebit margin of slightly over 6.4 percent,” the Dornbirn, Austria-based company said in a statement today.
The company now sees an “increase of substantially less than 10 percent in revenues and a year-on-year decline in the Ebit margin, in particular due to the Components Segment,” Zumtobel said, adding that “in view of macroeconomic developments and the related uncertainty over sales volumes and capacity utilization, exact guidance on the expected Ebit margin for the full year cannot be provided at the present time.”
Second-quarter net income fell 20 percent to 20.7 million euros ($28 million) from 25.85 million euros a year earlier, hit by “continuing growth investments and a weakness” in the components segment, it said in its quarterly report today.
Zumtobel is mulling “adjustments” in the components unit, Chief Executive Officer Harald Sommerer said in a telephone interview today.
“We sill start with temporary cost reductions and won’t switch to more sustainable ones until we also see that the crisis is sustainable,” he said.
Zumtobel is betting on new products and aiming for LED lighting to be responsible for a third of its revenues by fiscal 2015, Sommerer said, adding that LED was responsible for 12 percent of Zumtobel’s revenue in the six month ended Oct. 31.
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