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Bang & Olufsen Plunges as Consumers Spurn $15,000 TVs
- Company abandons three-year targets, halts buyback program
- CEO says company overestimated speed of turnaround efforts
Bang & Olufsen A/S shares lost a quarter of their value after the ailing Danish luxury audio-equipment maker warned that television sales are falling, endangering Chief Executive Officer Henrik Clausen’s turnaround efforts.
The company cut its outlook after third-quarter operating profit fell 39 percent, damping confidence in Clausen’s prediction two months ago that the company should rebound in the next two years. Bang & Olufsen is struggling to sell its high-end $15,000 BeoVision Eclipse TV sets as tech reviewers point out that consumers can find cheaper systems of similar quality.