B&O's stock, sables down after yet another downgrade

the Shareholders of Bang & Olufsen can see the company's market value fall about 300 million kroner on Wednesday morning. Bang & Olufsen shares fall on Wedne

B&O's stock, sables down after yet another downgrade

the Shareholders of Bang & Olufsen can see the company's market value fall about 300 million kroner on Wednesday morning.

Bang & Olufsen shares fall on Wednesday morning, about 18 percent.

It happens after the tv and elektronikproducenten on Tuesday night downgraded its outlook for the fourth time within the same year.

With this fall has a Bang & Olufsen lost about 300 million of its market value, which now is in the bottom of the 1.4 billion crowns.

the Downgrade from the company means that, for the current financial year 2019/20, which runs to the end of may next year, now waiting for a drop in sales of 13 to 18 percent.

Previously, the company had a different positive expectation of a "single digit growth" in revenue.

According to Kristian Teär, managing director at Bang & Olufsen, the company's failing sales background in several factors.

Among other things, the sales of those partners who sell products to consumers, has not been satisfactory.

- The strategic direction is unchanged, but it is clear that there must be a fundamental change of sales and marketingsindsatsen and creating a culture where we are closer to customers and partners, " says Kristian Teär in a message.

the Problem for Bang & Olufsen is, according to Per Hansen, investeringsøkonom at børsmægleren Nordnet, to the company's competitors have hauled on it.

He estimates that the Danish tv - and electronic no longer have the spydspidskompetencer, as customers in the past were willing to pay extra for.

Immediately see Per Hansen two ways out of the problems for the Bang & Olufsen.

Either the company must engage in the hard work and independently try to regain its place in the market, or also, the company must rely on partnerships with other companies.

Here and now investeringsøkonomen the last of the potential for the most realistic.

- I do not think that it any longer is very realistic, to Bang & Olufsen with its own power can remain independent.

- Therefore, you have to try, if you can maximize the values for owners, investors and shareholders. And it's all about that Bang & Olufsen must be a part of something bigger, says Per Hansen.

Along with Tuesday's downgrade told Bang & Olufsen, to the company 3. april next year will hold the capital market day.

Here, management will present a three-year plan with initiatives to strengthen the company in the long term.

/ritzau/

Updated Date: 18 December 2019, 09:00

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