29 October 2009 07:08 [Source: ICIS news]
SINGAPORE (ICIS news)--Switzerland-based Lonza Group said on Thursday it expects its operational earnings to fall to Swiss franc (Swfr) 360-380m ($350-369m/€238-251m) this year, citing "unexpected events" since the end of September.
The range provided was 14-18% lower compared to Swfr441m earnings before interests and taxes (EBIT) the pharmaceuticals producer made in 2008.
The company did not disclose its third-quarter financial results.
Lonza said “an accumulation of unexpected events since end September”, including cancellations and postponements of large-scale biopharmaceutical custom manufacturing, would bring about the projected decline in profits.
“This environment of high volatility is expected to continue for the next few years,” the company said.
The full-year EBIT forecast excludes one-off costs from a proposed re-engineering project that would be implemented over the next 12-18 months, the Swiss firm said.
The project entails Lonza cutting its fixed costs by Swfr60-80m over the next two years through the consolidation of its business units, it said.
The company would also cut its capital expenditure target to below Swfr400m next year from Swfr500m and cap spending at the same level in 2011, it added.
($1 = Swfr1.03, €1 = Swfr1.51)
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