CSG shares in Amsterdam fall by more than 20 pct to new low

Amsterdam/Prague, Nov 11 (CTK) - Shares of arms maker Czechoslovak Group (CSG) fell by more than 20 percent today on the stock exchange in Amsterdam, hitting an all-time low of EUR10.35, according to stock exchange statistics.

Analysts attribute the decline to the release of an outlook for the operating margin, which will be lower than the company had previously anticipated.

Shortly after 11:30, the shares were down more than 18 percent and trading just below EUR11. CSG shares began trading in Amsterdam in January at EUR25 per share. Shortly after, their price climbed to a record high of EUR35.50.

The company increased sales by 6.1 percent year-on-year to EUR4.76bn (CZK115.9bn) in the first three quarters of this year, while its EBITDA rose slightly to EUR1.2bn. At the same time, however, it cut its full-year margin forecast. The reason is lower prices for standard-range ammunition, as demand is shifting to longer-range products, the company said today in its trading statement.

The company said that in the third quarter, it accelerated sales of standard-range ammunition at lower market prices. Profitability was also negatively impacted by the Land Systems division's higher share of total revenue. This division generates lower margins than the ammunition division.

The company lowered its operating margin outlook to approximately 21 percent, whereas it had previously anticipated a margin in the range of 24 to 25 percent. At the same time, it left its revenue outlook unchanged at EUR7.4bn to EUR7.6bn.

CSG is owned by businessman Michal Strnad, who is also the wealthiest Czech. In August of this year, Euro magazine estimated his net worth at CZK470bn.

hel/er

CZ0009009718
NL0015073TS8