ADP Stock Drops as Airport Operator Lowers Profit Target
Aeroports de Paris fell the most in 3 1/2 years after the operator of the airports serving France’s capital city cut traffic and earnings forecasts for coming years and outlined cost cuts because of Europe’s shrinking economy.
Aeroports de Paris (ADP) dropped 9.1 percent to 56.29 euros, the steepest intraday decline since June 17, 2009, and was trading down 5.9 percent at 10:43 a.m. That pared the stock’s gain this year to 9.9 percent, valuing the company at 5.77 billion euros ($7.62 billion). Volume was almost triple the three-month daily average.
The airport operator expects average annual growth in passenger numbers of 1.9 percent to 2.9 percent in the five years through 2015, down from a 3.2 percent forecast, the Paris- based company said today in a statement. Earnings before interest, taxes, depreciation and amortization in the six years through 2015 will increase 25 percent to 35 percent versus a 40 percent growth projection.
“The slowing growth in traffic witnessed since summer 2012, as well as recent economic forecasts, have led Aeroports de Paris to adjust its traffic assumption,” the company said. The airport operator said it’s undertaking a spending reduction program to reduce operating costs by an average 3 percent from now through 2015.
The 17 nations that use the euro fell into recession in the third quarter. The European Central Bank is forecasting that the bloc’s economy will shrink by 0.3 percent in 2013.
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