COPENHAGEN, Aug 28 (Reuters) - Danish mineral wool producer Rockwool <ROCKb.CO> posted a 41 percent fall in first-half net profit, in line with expectations, and cut its 2008 forecasts on Thursday, saying the market was difficult to predict.
The group said net profit fell to 538 million crowns ($106.7 million), compared with an average estimate in a Reuters poll of 535 million.
Rockwool said it saw full-year net profit of about 1.1 billion crowns against a previous forecast of about 1.3 billion.
'The results are better than I had feared. But they cut their (2008) result forecast to 1.1 billion where I had expected 1.2 billion, so that's a larger downgrade than I had forecast,' said Sydbank analyst Soren Hansen.
By 1132 GMT, Rockwool shares were 3 percent higher at 515 crowns, outperforming the Copenhagen bourse's top-20 OMX index <.OMXC20>, which was 0.4 percent up. The shares have more than halved in value from their 2008 high of 1,232 crowns set in January.
Rockwool, whose products are used in residential and commercial building as insulation, said the market situation remained difficult to predict.
'Considering current market trends, expectations for 2008 sales are now slightly below last year,' the company said in a statement.
Previously it saw 2008 sales flat on last year's turnover.
The company said it would invest 18.5 million euros ($27.4 million) in a green-field factory in India on the west coast of Gujarat state.
(Reporting by Kim McLaughlin; Editing by Rory Channing and David Holmes) ($1=5.043 Danish Crown) ($1=.6761 Euro) Keywords: ROCKWOOL/ tf.TFN-Europe_newsdesk@thomson.com vjt COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
The group said net profit fell to 538 million crowns ($106.7 million), compared with an average estimate in a Reuters poll of 535 million.
Rockwool said it saw full-year net profit of about 1.1 billion crowns against a previous forecast of about 1.3 billion.
'The results are better than I had feared. But they cut their (2008) result forecast to 1.1 billion where I had expected 1.2 billion, so that's a larger downgrade than I had forecast,' said Sydbank analyst Soren Hansen.
By 1132 GMT, Rockwool shares were 3 percent higher at 515 crowns, outperforming the Copenhagen bourse's top-20 OMX index <.OMXC20>, which was 0.4 percent up. The shares have more than halved in value from their 2008 high of 1,232 crowns set in January.
Rockwool, whose products are used in residential and commercial building as insulation, said the market situation remained difficult to predict.
'Considering current market trends, expectations for 2008 sales are now slightly below last year,' the company said in a statement.
Previously it saw 2008 sales flat on last year's turnover.
The company said it would invest 18.5 million euros ($27.4 million) in a green-field factory in India on the west coast of Gujarat state.
(Reporting by Kim McLaughlin; Editing by Rory Channing and David Holmes) ($1=5.043 Danish Crown) ($1=.6761 Euro) Keywords: ROCKWOOL/ tf.TFN-Europe_newsdesk@thomson.com vjt COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
