Bang & Olufsen raises FY pretax forecast slightly after 'satisfactory' H1 UPDATE |
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Wed, 10 Jan 2007 14:41
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(Adds comments on expectations to H2, H1 sales performance, gross margin)COPENHAGEN (AFX) - Bang & Olufsen AS raised its pretax profit forecast for the year ending May 31, 2007 to 470-510 mln dkr from 460-500 mln previously to reflect the proceeds of the sale of the group's 65 pct stake in Bang & Olufsen Medicom AS from March 1.The second half-year will be influenced positively by planned product launches, including an advanced loudspeaker, BeoLab 9, and flat-screen TVs, the group said.Overall, Bang & Olufsen expects an increase in sales of 8 pct for the year.The group said the first half developed satisfactorily, with pretax profit rising 29 pct from a year earlier to 238 mln dkr from 185 mln.Operating profit rose to 240 mln dkr from 190 mln, and sales rose 8 pct to 2.07 bln dkr from 1.92 bln.Analysts polled by newswire RB-Boersen expected the group to post pretax profit of 207 mln dkr and EBIT of 211 mln dkr for the first six months, on sales of 2.10 bln dkr.Bang & Olufsen said sales development in the first half was satisfactory in all important markets.A difficult first quarter in the US was offset by a good second-quarter performance, which resulted in a 7 pct year-on-year increase in sales.In the first half-year, the branded business saw sales of 1.97 bln dkr, up 9 pct from the 1.79 bln dkr posted in the same period last year, which was characterised by several new launches.Of the non-branded business, Bang & Olufsen Medicom saw sales fall to 75 mln dkr from 107 mln dkr, while pretax profit fell to 3 mln dkr from 10 mln.As expected, the development during the half-year was characterised by the switch from licensed production to sales of development services.Bang & Olufsen Medicom expects a modest deficit for the second half year.Bang & Olufsen ICEpower saw a 22 pct increase in sales to 50 mln dkr from 41 mln dkr, while pretax profit was unchanged at 10 mln dkr.Bang & Olufsen accounts for 10 pct of ICEpower's sales, while the rest is generated through external partners.The group's gross margin was 47.5 pct compared with 47.8 pct for the same period last year.As planned, Bang & Olufsen continued to increase its product development activities in the first half-year, so development costs increased to 222 mln dkr from 197 mln dkr a year ago.michael.delaine@afxnews.commdl/jlw/mdl/ambCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Bang & Olufsen raises FY pretax forecast slightly after 'satisfactory' H1 