March 13, 2020 / 10:30 AM / 15 days ago

UPDATE 1-TV and stereo maker Bang & Olufsen cuts outlook on virus impact, shares down

(Adds details, CEO comment, share reaction)

COPENHAGEN, March 13 (Reuters) - Bang & Olufsen on Friday cut its sales and profit margin outlook due to the anticipated impact of the coronavirus, the struggling Danish luxury TV and stereo maker said, sending its shares down more than 6%.

B&O, which in December issued a fourth profit warning in a year, now expects its 2019/20 revenue to fall 20-29% versus a previous range of 13-18%.

It also forecast its full-year operating margin would shrink by 10-15% versus a previous forecast of 4-9%.

“We expect that COVID-19 and the uncertainty related to the current market situation will affect consumer behavior and demand in all major markets,” Chief Executive Kristian Tear said in a statement.

The Danish company, whose new range of televisions can sell for up to 138,500 Danish crowns ($20,625), reported a preliminary third-quarter revenue drop of 12% as in-store sales in Asia were hurt by coronavirus, it said.

Bang & Olufsen said product supply was only marginally effected by the virus, but logistics costs had increased in the quarter.

Shares in B&O traded down 6.1% at 1005 GMT, and have dropped around 70% during the last year. (Reporting by Andreas Mortensen; editing by Jason Neely)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below