March 18 (Bloomberg) -- Von Roll Holding AG declined the most in two months as the Swiss maker of electrical insulation and transformers said its 2015 forecasts would need to be adjusted due to worsening conditions.
The stock fell as much as 6 percent, the biggest intraday drop since Jan. 18. Shares of the Waedenswil-based company traded 4.2 percent lower at 2.05 Swiss francs as of of 11:17 a.m. in Zurich. Trading volume was 15 percent above the three-month daily average.
Von Roll said a full-year operating loss of 50.1 million francs ($53.1 million) was mainly due to writedowns at two acquired companies. Margins at the transformer business in Israel and the Shenzhen insulations unit in China fell short of assumptions at the time of purchase, Von Roll said in a statement.
“Confidence in the new management and the turnaround is gone,” Andy Schnyder, an analyst at Bank Vontobel AG in Zurich said in a note to clients. “The future of Von Roll is uncertain and the stock is not cheap,” he added. Schnyder has a hold rating on the stock.
The manufacturer said it will have to change the timeframe of targets announced last year, which include reaching 800 million francs in sales and increasing the margin on gross profit to 24 percent by 2015.
Von Roll appointed Achim Klotz as chief executive officer on Dec. 18. His predecessor, Matthias Oppermann, left after just nine months at the helm.
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