Latecoere Slumps After Cutting Outlook for 2012: Paris Mover
Latecoere SA (LAT), a French maker of aircraft structures, dropped the most in 2 1/2 years in Paris trading after cutting in half its target for the operating margin and lowering its sales projection for the full year.
The stock fell as much as 1.23 euros, to 14 percent, to 7.52 euros in Paris trading, the most since May 2010. Latecoere has lost almost a fifth of its value so far this year.
Latecoere said in a statement after the market closed yesterday that its operating margin will be about 4 percent of sales this year, compared with a previous prediction that was twice as high. The company attributed the cut to a disruption in production in Tunisia in October. It also predicted full-year revenue growth of 9 percent this year, compared with a previous goal of about 10 percent.
“Industrial solutions securing the schedule of deliveries to customers were immediately implemented, generating temporary overruns,” Latecoere said. “The production activity is gradually resuming in Tunisia. This episode will weigh on the operating margin of the group.”
Total revenue, excluding non-recurring items, in the third quarter rose 13 percent to 126.4 million euros ($163.5 million), Latecoere said yesterday.
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