By Helena Smolak
Surteco lowered its full-year guidance after swinging to a third-quarter loss amid weakened demand and costs related to acquiring Omnova operations earlier this year.
The German holding company for surface technology said Friday that it now expects full-year earnings before interest and taxes of between 5 million euros and 15 million euros ($5.3 million-$15.8 million), compared with a previous forecast of EUR20 million to EUR30 million.
Surteco anticipates sales will be significantly below the original forecast of between EUR920 million and EUR950 million.
For the third quarter, Surteco reported a net loss of EUR13.3 million, compared with a net profit of EUR27.4 million for the same period a year ago. Sales increased 7% to EUR637.3 million, mainly boosted by the acquisition of the laminates and coated fabrics operations of Omnova. EBIT amounted to EUR4.1 million, down 90% on-year.
Write to Helena Smolak at helena.smolak@wsj.com
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