Micronas Falls Most in Almost a Year on Outlook: Zurich MoverPatrick Winters
Micronas Semiconductor Holding AG, which sells computer chips for Volkswagen AG cars, declined the most in almost 12 months after the Zurich-based company reported a gloomy outlook for this year.
Micronas dropped as much as 11 percent, the biggest intraday drop since March 1, 2012, and was trading 10 percent lower at 7.20 francs at 11:34 a.m. in Zurich. That cut the firm’s market value to 214 million francs ($229 million). Over 473,000 shares, or more than seven times the daily average trading volume over the past three months, changed hands.
Micronas Chief Executive Officer Matthias Bopp said the “gloomier outlook” for the automotive industry since the third quarter is set to continue in the first half of 2013. The yen’s weakening against the euro since the fourth quarter is also hitting exports to Japan and will reduce the margin on earnings before interest and tax, a measure of operating profitability, by 6 to 8 percentage points, the company said.
“The deterioration of the business towards year-end was worse than we anticipated,” Michael Foeth, an analyst at Bank Vontobel AG in Zurich, said in a note to clients, adding that the outlook is “accordingly poor”. Foeth has a hold rating on the stock.