Geberit Cuts Forecast on Greater-Than-Expected Construction Drop
Geberit AG (GEBN), the Swiss maker of toilets and bathroom piping systems, cut its revenue forecast and said it expects “cloudy conditions” for the rest of the year as sales dropped in Italy and at home.
The company cut the full-year target of currency-adjusted sales growth to 3 to 4 percent, from an earlier prediction of 4 to 6 percent. Geberit, based in Rapperswil in Switzerland, maintained its goal of earnings before interest, taxes, amortization and depreciation in proportion to sales of 23 percent to 25 percent. Geberit fell as much as 8.5 percent.
Geberit “witnessed a decline in many markets and regions,” the company said in a statement. “Although expected, this decline turned out to be much larger in magnitude than forecast.”
The Swiss company said it predicts a drop in government- financed construction amid slowing growth and continued political and economic uncertainties in the next 12 months.
Net income fell 11 percent in the third quarter to 101.2 million francs ($108.2 million) missing the 125.5 million-franc estimate of four analysts surveyed by Bloomberg. Sales rose to 543.5 million francs from 533.3 million francs.
Geberit fell as much as 17.3 francs to 186.10 francs, the most in more than a year, and traded at 186.1 francs as of 9:03 a.m. in Zurich. The stock has gained 2.8 percent this year.
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