Orascom Development Falls on Outlook of Wider Loss: Zurich Mover
Orascom Development Holding AG (ODHN), the hotel and construction company controlled by Egyptian businessman Samih Sawiris, fell the most in more than two months after saying its first-half loss may more than double.
The company, based in the Altdorf, Switzerland, declined as much as 1.1 Swiss francs, or 6.9 percent, to 14.75 francs in Zurich, and traded at 14.90 francs as of 10:23 a.m. That gave the company a market value of about 425 million Swiss francs ($437 million).
Higher construction costs, tax payments and the impairment of some investments in associates will lead to a first-half loss that Orascom said will be in the range of 20 million francs to 30 million francs, according to a statement today. The company lost 13.7 million francs a year earlier.
Chairman and majority owner Sawiris has loaned the company 75 million francs and guaranteed as much as 50 million in additional bank financing, as the builder fights to recover from low sales in Egypt because of political unrest. Egypt contributed 70 percent to Orascom Development’s 2010 sales.
The company will report full first-half results on August 29.
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