Bang & Olufsen A/S shares sank after the Danish maker of luxury stereos reported a drop in sales of TVs after it had to delay a new product launch.
B&O fell as much as 6.8 percent in Copenhagen, driving its share price down to 68.50 kroner at one point after the market opened. That compares with a high of 83.50 kroner in December, when takeover speculation was still rife. Chinese billionaire Qi Jianhong, who had indicated interest in acquiring the Danish company, has since backtracked. The latest regulatory filing shows he holds a little over 20 percent of the company.
Sales for the 12 months ending May 31 declined 5 percent for the Bang & Olufsen segment, which covers audio and video products. Meanwhile, its new B&O Play division, which makes headphones and portable audio systems, reported full-year sales growth of 58 percent.
“Revenue in the Bang & Olufsen segment disappointed due to the postponed launch of new TV products,” the company said in a statement. “But overall the group realized the same revenue level as last year. Margins improved and capacity costs were lower, which led to an improved profitability compared to last year.”