Von Roll Slides After Warning on Key Market Sales: Zurich MoverLeigh Baldwin
Von Roll Holding AG, a Swiss maker of insulation systems, fell the most in more than eight months after the company said sales in its core markets are falling in difficult market conditions.
Von Roll dropped as much as 11 percent, the biggest intraday decline since April 24, and was down 7.3 percent to 2.04 Swiss francs at 11:20 a.m. local time. Trading volume was almost six times the three-month daily average.
The company, based in Waedenswil outside Zurich, expects to announce a “sharp overall decline” in its 2012 operating result when it reports full-year earnings on March 18, Von Roll said in a statement. Full-year sales fell about 8.5 percent to 497 million francs ($531 million), with a “significant” 16 percent decline in the fourth quarter, it said.
“Large and technically demanding projects in the transformer business resulted in delivery delays and extraordinary expenses,” Von Roll said. “Reorganization and restructuring projects also impacted transformer business during the second half of 2012.”
Von Roll appointed Achim Klotz as chief executive officer on Dec. 18. His predecessor, Matthias Oppermann, left just nine months after presenting a new strategy, in what some investors would call a “worst case scenario,” said Andy Schnyder, an analyst at Vontobel Holding AG.
“It will take time until the new CEO can build up a track record and confidence,” Schnyder said in a note to clients. He recommends investors to “stay away” from the stock.