Bang & Olufsen reports pretax loss for Q4

Friday 16 August 2013 11.01
Bang & Olufsen has issued two profit warnings during the 2012/13 financial year
Bang & Olufsen has issued two profit warnings during the 2012/13 financial year

Danish luxury electronics maker Bang & Olufsen reported a fourth-quarter pretax loss due to one-off costs and falling sales and predicted a difficult year ahead.

Bang & Olufsen predicted its operating margin will rise from a loss to the break-even level in the year ahead as it restructured, terminating a number of older products.

The company has issued two profit warnings during the 2012/13 financial year.

"Continued challenging market conditions in Europe are likely to have a negative impact on consumer confidence and continue to create headwind for the overall AV market in the 2013/14 financial year," the group has said.

For the full year, the company posted a net loss of 160 million Danish crowns (€21.45 million), its third annual net loss in the past five years.

It reported a pretax loss of 45 million Danish crowns (€6 million) in the fourth quarter against a 77 million crowns profit a year earlier and compared with an average 43 million loss forecast in a Reuters poll of analysts.

For the financial year ahead, which runs from June to May, B&O expects revenue "moderately above the level of the 2012/13 financial year". The group sees a "significant improvement" in the operating margin from a loss to near the break-even level due to lower capacity costs.

Revenue for the financial year 2012/13 amounted to 2.81 billion crowns just within B&O's guidance range of between 2.80 billion and 2.90 billion crowns given in March.

The full-year operating loss landed at 188 million crowns against a guidance of a loss of between 150 million and 200 million crowns.

The group kept its long-term ambition of reaching revenue of 8 billion to 10 billion Danish crowns, a goal that many analysts doubt will be fulfilled.