ZURICH, Nov 7 (Reuters) - Swiss testing company SGS scaled back its profit targets for 2020, saying on Wednesday that a downturn in commodities markets would delay a hoped-for boost.
SGS said its goal of hitting at least an 18 percent adjusted operating income margin in 2020 would be delayed and is instead now targeting a margin of above 17 percent, based on mid-single digit organic growth.
The Geneva-based company, which said it will be targeting accelerating mergers and acquisitions, did not specifically say which markets were responsible for its downgrade. It did not immediately return a phone call on Wednesday seeking more details.
SGS reiterated its full-year 2018 guidance of solid organic growth, a higher adjusted operating income margin and robust cash flow.
“We’ve made solid progress in repositioning some divisions to respond to the recent commodity downturn, strengthened our core business and made some management changes,” said Chief Executive Frankie Ng. (Reporting by John Miller; Editing by Gopakumar Warrier)