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CORRECTED - UPDATE 1-Cimber Sterling slashes outlook again, shares drop
February 24, 2010 / 8:22 AM / 8 years ago

CORRECTED - UPDATE 1-Cimber Sterling slashes outlook again, shares drop

(Corrects 2010/11 profit forecast in sixth paragraph to between a 30 million crowns loss and a 30 million profit, from a profit of around 30 million.)

STOCKHOLM, Feb 24 (Reuters) - Danish budget airline Cimber Sterling Group A/S CIMBER.CO slashed its full-year outlook for a second time since listing on the stock market less than three months ago, sending its shares down nearly 15 percent.

Cimber said on Wednesday the second warning was due to “increased competition with severely squeezed fares, lower demand and extra costs related to the severe winter weather”.

It now sees an operating loss of between 200 million Danish crowns ($36.5 million) and 220 million, before IPO costs of 10 million, instead of a previous forecast for a 60 million loss.

The small carrier’s debut on the Copenhagen bourse on Dec. 1, in which it raised 275 million crowns in a fully subscribed offering, was followed by a profit warning in December for its 2009/10 fiscal year. [ID:nDKT004755] [ID:nLDE5BG1BI]

Sales are now seen at between 1.55 billion crowns and 1.61 billion, down from previous guidance for 1.68 million to 1.73 million, Cimber said.

The airline forecast operating results in 2010/11 of between a 30 million crowns loss and a 30 million crowns profit.

Its shares traded down 14.7 percent at 4.0 crowns at 0805 GMT, after equalling a record low of 3.90 set on Feb. 15.

The stock was sold at 10 crowns in the IPO.

Chief Executive Jacob Krogsgaard last month made a public apology to Norwegian Air Shuttle (NWC.OL) after Cimber employees placed prank bookings under bogus names such as Donald Duck for cut-priced tickets issued by its rival. [ID:nLDE60I1MU] (Reporting by Anna Ringstrom; Editing by David Holmes) ($1=5.479 Danish Crown)

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