Shares in Kamps AG, the largest German bakery chain, shed more than 40 per cent on Wednesday, after the company cut its 2001 operating profit forecast by 31 per cent, reports Reuters. By midday, the stock was down 42.11 per cent at Euro 6.20 after hitting a low of Euro 6.14. In a statement, Kamps said it expected earnings before interest and tax (EBIT) to come in at Euro 90 million compared with a previous forecast of Euro 130 million. It blamed high energy and raw materials prices and delays in improving logistics for the reduction. According to spokesperson Thomas Sterz, Kamps expected to increase earnings before interest and tax to Euro 120 million next year. Kamps also reported a 21.7 per cent fall in first half EBIT to Euro 40 million. Net sales were up 21.3 per cent to Euro 842.4 million on the back of its international expansion. According to Kamps, the group had already started streamlining purchasing to counter rising costs and was taking other measures. "International procurement for the group is only to become operational towards the fall of this year and existing new retail trade selling concepts for the entire group will only be unveiled at the Anuga trade fair in October," it said. The company expects full year net sales to come in at Euro 1.75 billion. About a third of first half sales were registered abroad compared with 19 per cent in the same period last year.
