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PSI Declines After Software Maker Cuts Forecast: Berlin Mover
PSI AG, a maker of software that helps control blast furnaces, gas networks and public transport systems, fell the most in three years after cutting its profit forecast by more than half.
The shares tumbled as much as 14 percent, the steepest intraday decline since April 2010. The shares traded 13 percent lower at 11.88 euros as of 10:38 a.m. in Frankfurt, extending this year’s decline to 23 percent and valuing the company at 187 million euros ($253 million).
Additional costs from logistics and energy projects mean PSI now expects full-year earnings before interest and taxes of 5.2 million euros, the Berlin-based company said in a statement today. It forecast Ebit of 14 million euros to 17 million euros in March.
The extra costs are “fully unexpected,” Michael Schaefer, a Frankfurt-based analyst at Equinet, wrote in a note to clients today. “This leaves visibility on earnings recovery totally in the clouds.”
In 2014 and 2015, Ebit will reach 12 million euros and 15 million euros respectively, less than previously forecast, PSI said.
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