Nov. 23 (Bloomberg) -- Gategroup Holding AG fell as much as 21 percent in Zurich trading after the Swiss airline catering company lowered its 2011 profit target on a slowdown in Europe and North America.
Profitability won’t improve in 2012 after 2011 earnings before interest, taxes, depreciation and amortization reach 7.4 percent to 7.7 percent of sales, the Kloten-based company said in a statement today. Gategroup, whose customers include American Airlines Inc., Delta Air Lines Inc. and EasyJet Plc, forecast 2011 sales of 2.65 billion Swiss francs ($2.9 billion) to 2.7 billion francs.
Gategroup traded 15.9 percent lower at 21.70 francs as of 11:34 a.m. in Zurich. A close at that level would be the lowest in more than two years.
The 2012 outlook is “very disappointing,” wrote Rene Weber, an analyst at Bank Vontobel who put his “buy” recommendation on the stock under review.
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