Sectra Shares Fall as Pace of Contracts Slows: Stockholm Mover
Sectra AB (SECTB), a Swedish maker of medical imaging technology, fell the most in six months in Stockholm trading after the company said clients are postponing purchases because of difficult budgets.
The share fell as much as 8.3 percent, the biggest drop since Aug. 19. Sectra declined 7.3 percent to 44.50 kronor as of 12:31 p.m. local time.
Orders declined 39 percent to 131.5 million kronor ($19.5 million) in the three months through January as the economic slowdown and budget austerity make transactions slower in many countries, the Linkoping, Sweden-based company said today in a statement.
“The transactions that take place are increasingly linked to the replacement of existing hardware, which has an adverse impact on our operating margin since these transactions have lower margins than new sales of IT systems,” Chief Executive Officer Jan-Olof Bruer said in the statement.
Operating profit declined to 5.4 million kronor from 15.7 million kronor in the third quarter. Sales declined 2.3 percent to 196.1 million kronor.
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