Shares fall at Kamps on revised earnings - Brief Article

Eurofood, August 2, 2001

German baker Kamps has cut its earnings forecast for the year along with disappointing first-half results, leaving investor confidence fragile.

Kamps, Europe's largest bakery group said its earnings before interest and tax for 2001 would total around 90m [European Dollar], a huge drop on the 130m [European Dollar] originally forecast. Operating profit for the half-year was 40m [European Dollar], again down from 51.1m [European Dollar] a year earlier. Kamps said the poor performance was a result of rising energy and raw material costs. The German concern said its cost of sales had increased by a hefty 32%.

However, many market analysts doubt Kamps' management, following two successive quarters of missed forecasts. Since Kamps issued its revised forecast, the German concern saw around 45% wiped off its share value. For many, the revised figures are not the problem. It is the fact Kamps said everything was back on track in May.