BERLIN (dpa-AFX) - Shares of Suedzucker AG (SUEZF.PK) were trading around 4 percent lower in the early morning trading after the German sugar producer reported weak revenues in its second quarter.
For the second quarter, revenues declined to 1.597 billion euros from 1.702 billion euros last year. Operating profit, however, increased to 99 million euros from prior year's 77 million euros. Operating margin was 6.2%, higher than 4.5% a year ago.
The earnings increase is caused especially by the development in the sugar segment, but also all other segments contributed, the company said.
Looking ahead, the company continues to expect for financial year 2016/17 group revenues of 6.4 billion euros to 6.6 billion euros, compared to previous year's 6.4 billion euros.
For the year, group operating profit is now expected to reach 340 million euros to 390 million euros, compared to previous year's 241 million euros. The company previously projected operating result between 250 million euros to 350 million euros.
The revision in earnings forecast reflects an ongoing positive performance of special products segment in the second quarter as well as a sugar price increase expected as of October 1, beginning of new sugar marketing year 2016/17.
The company will publish the full interim report on October 13.
In Germany, Suedzucker shares were trading at 22.78 euros, down 4.43 percent.
Copyright RTT News/dpa-AFX