Coloplast cuts sales forecast on currency swings
COPENHAGEN (Reuters) - Danish healthcare product maker Coloplast (COLOb.CO) cut its full-year Danish-crown sales forecast on Wednesday due to unfavorable currency developments, after reporting first-quarter results roughly in line with forecasts.
The company, which makes products ranging from urine bags to wound dressings, kept its forecast for organic sales growth at 6-7 percent in local currency terms for the 2012/2013 financial year which runs to the end of September.
It cut the same growth forecast in Danish crowns to 5 to 6 percent from 6 to 7 percent previously.
"It is due to foreign exchange developments, primarily the development of the U.S. dollar," Jyske Bank analyst Frank Andersen told Reuters. "The dollar is quite a bit weaker than it was at the same time last year."
Shares in Coloplast traded down 4.8 percent at 1120 GMT, underperforming the Copenhagen benchmark index .OMXC20 which rose 0.1 percent.
"The expectations on Coloplast are so high," said Sydbank analyst Soren Hansen, adding that record-high turnover and earnings in the first quarter should support the share price.
Coloplast said earnings before interest and tax (EBIT) rose 29 percent from the first quarter a year earlier to 897 million crowns.
The result was higher than an average 882 million-crown estimate in a Reuters poll of analysts. Net profit grew 27 percent to 617 million crowns, just shy of an analyst forecast of 620 million.
It expects its operating margin - a measure of profitability - to rise to between 31 and 32 percent from 30 percent in 2011/12, both at constant exchange rates and in Danish crowns.
(Reporting by Johan Ahlander and Mette Freande; Editing by Tom Pfeiffer)