| Parmalat posts 55.6% fall in 9-month net profit |
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07/11/2009 12:43 (13 Day 16:48 minutes ago) | |||||
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The FINANCIAL -- Italian dairy group Parmalat reported a 55.6% fall in nine month net profit but raised its 2009 core profit target on November 6.
Parmalat, which makes long-life milk and juices, said it expected earnings before interest, tax, depreciation and amortisation (EBITDA) of 350 million euros ($521 million), up from previous guidance of 310-320 million euros, Reuters reported. It expects 2009 revenue growth of 1-2 percent, it said, down from a previous forecast of 2-4 percent. Nine-month net revenues fell 1 percent to 2.847 billion euros, it said in a statement.
According to the same source, on a conference call with analysts, Antonio Vanoli, general manager for operations, said the company was prudent with the forecasts but "maybe we could perform even better".
The Parma-based company increased its 2009 guidance due to improving margins, upping forecasts for core earnings to EUR350 million from the previously announced EUR310 million-EUR320 million, The Wall Street Journal informs.
The group's earnings before interest, taxes, depreciation and amortization, or Ebitda, rose 20.6% to EUR265.3 million, as profitability improved despite strong competitive pressure from private labels, according to the same source. In 2003, the firm crumbled under EUR14 billion of debt, the victim of massive fraud allegedly perpetrated by its former managers.
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