Doro Falls as Profit Slides, Pareto Cuts Rating: Stockholm Mover
Doro AB (DORO), a Swedish maker of phones and answering machines, fell the most in more than two years after its second-quarter profit tumbled and Pareto Ohman recommended investors to sell the stock.
Shares in the Lund, Sweden-based company plummeted as much as 15 percent and were down 14 percent at 24.3 kronor, the biggest fall since May 2010, at 12:07 p.m. in Stockholm trading.
Sales during the period was affected by a stock reduction in Canada where customers are waiting for newer models and by increased competition from low-priced products in some European markets. Increasing competition from Asian vendors is making the market more difficult for Doro, Helena Nordman-Knutson, a Stockholm-based analyst at Pareto Ohman, said in a note today.
“Even if Doro is likely to turn the sales trend into growth in 2013, the competition is eating market share with strong price pressure in Europe,” she said. “We believe that Doro will have to adjust its long-term sales growth goal of 20 percent as we move into 2013.”
Net income during the second quarter fell 24 percent to 6 million kronor ($903,587), while sales slipped 5.1 percent to 156.5 million kronor.
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