MLP Quarterly Profit Falls 37% on Lower Pension Product SalesOliver Suess
MLP AG, Germany’s second-biggest financial-services broker, said third-quarter profit fell 37 percent as sales of pension products declined.
Net income dropped to 5.3 million euros ($7.1 million) from 8.4 million euros in the year-earlier period, the Wiesloch, Germany-based firm said in a statement today. Revenue declined 6 percent to 114.5 million euros in the quarter.
MLP, led by Chief Executive Officer Uwe Schroeder-Wildberg, said earlier this month that it no longer expects to reach a target for earnings before interest and tax of 65 million euros to 78 million euros for 2013. Chief Financial Officer Reinhard Loose said in an interview in September that it has become “more difficult” to reach the goal because customers are reluctant to spend money on long-term savings products.
Low interest rates “as well as the negative headlines concerning life insurance contracts have added to the already hesitant stance of many clients,” Schroeder-Wildberg said in the statement.
The broker reiterated its forecast for earnings before interest and taxes of between 65 million euros and 78 million euros for 2014 and 2015.
MLP shares have lost 9.7 percent this year, giving the company a market value of about 487 million euros.