CGG Falls in Paris on Lower Margins From Equipment SupplyNidaa Bakhsh
CGG, the largest seismic surveyor of oilfields, fell the most in more than a year in Paris trading as profit margins at its Sercel equipment-supply unit shrank.
CGG dropped 8.8 percent to 19.02 euros, the biggest one-day decline since September 2011, valuing the company at 3.4 billion euros ($4.5 billion). Trading volumes were more than five times the three-month daily average.
Sercel’s margin on earnings narrowed to 28 percent in the fourth quarter from 30 percent a year earlier as revenue slumped 12 percent, the Paris-based company said today in a statement. It expects the margin to hold steady this year before returning to 30 percent in 2014.
The decline resulted in part from increased competition and higher costs for research and development, Credit Agricole Cheuvreux SA said in a note. The margin missed a 32 percent estimate, it said.