November 7, 2012 / 8:31 AM / 5 years ago

UPDATE 1-William Demant cuts 2012 profit guidance, markets tough

* Says 2012 operating profit to match or just lag 2011

* Says sees 2012 revenue growth of 5-9 pct

* Sees negative currency hedging effects of 140 mln DKK in 2012

* Shares down 4.2 percent (Adds background, detail)

STOCKHOLM, Nov 7 (Reuters) - Danish hearing aid maker William Demant Holding cut its profit forecast for the year due to negative currency hedging effects and said that markets were tough.

The company, under pressure from competition and an ageing product line up, said the hearing aid market shrank in value terms in the third quarter.

“We now expect to realise an operating profit (EBIT) for 2012 on par with or just short of the level realised in 2011,” the company said in a statement.

William Demant had previously expected this year to beat last year and blamed the change in guidance on negative currency hedging effects, likely to hit operating profit by 140 million crowns.

Excluding that effect, it said operating profit would still be higher than 2011.

Shares in the company were down 4.2 percent at 473.10 crowns 0907 GMT.

William Demant still expects overall revenue growth for 2012 of 5 to 9 percent.

However, the competitor to Switzerland’s Sonova, Denmark’s GN Store Nord and Germany’s Siemens , said acquisitions would make up a higher portion of revenue growth than previously expected.

To address its ageing portfolio, William Demant said it will launch a broad range of products next year, including its Oticon high-end hearing aid product in January and that this would push up sales. ($1 = 5.8276 Danish crowns) (Reporting by Simon Johnson; Editing by Louise Heavens)

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