Danish luxury stereo and television maker Bang & Olufsen has cut its profit estimate for 2007/2008 for the third time this year as sales continue to fall due to the consumer spending slowdown.
The company, which has a store in Birmingham’s Mailbox, has seen shares fall 63 per cent since early January. It has now predicted an operating profit of around £21 million for the year ended May 31, down from its previous forecast of £24 million, which was itself down on the original forecast of £29.2 million.
B&O said the uncertain global economy had made it difficult to anticipate market developments, especially in the United States and Western Europe.
Executive vice president Peter Thostrup said: “The most important reason (for the downgrade) is the weakening sales at the end of our year.
“What we can do is launch strong products, but there is only one way forward and that is to ensure that we are flexible in our cost base so we can adjust.”
The company, which has a deal to supply in-car audio systems to Aston Martin, has had a torrid year and it fired its chief executive in January after the company’s third quarter sales fell 15 per cent overall and 26 per cent in its biggest markets – Denmark, Germany and Britain.
It said that it saw a reduced order book at the end of the financial year, and now forecast full-year sales of £436 million, down from its previous estimate of between £452 million and £463 million.
Analysts at Sydbank said the update showed that B&O faced a tough time in the short term and they predicted a big slowdown in the fourth quarter earnings.
