Feb. 28 (Bloomberg) -- Autometal SA, the Brazilian unit of Spanish auto-parts maker Cie Automotive SA, tumbled as it reported fourth-quarter earnings below analysts’ estimates, prompting Itau BBA to cut the stock to hold.
The shares fell 5.8 percent to 20.49 reais at the close of trading in Sao Paulo, the biggest drop since November 2011. Trading volume was 5.3 times the three-month daily average, according to data compiled by Bloomberg. It was the worst performance on the Bovespa Industrial Sector Index, which rose 0.7 percent.
Fourth-quarter net income attributable to shareholders was 23.8 million reais ($12 million), the Diadema, Brazil-based company said today in a statement. The average estimate of six analysts was for an adjusted net profit of 39 million reais, according to data compiled by Bloomberg.
Itau BBA analysts Renata Faber and Thais Cascello called the results “disappointing” and cut the stock to the equivalent of hold from buy.
The results included a 12.7 million-real provision related to the company’s deposits in a bank that is under central-bank intervention, as well as a 5 million-reais write-off of inventories in Brazil, according to the Itau BBA report.
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