Battery maker Varta's value plummets on scrapped outlook


Adds detail, background, share price move

Sept 23 (Reuters) - German battery maker Varta's VAR1.DE shares shed nearly a fifth of their value after it withdrew full-year and third-quarter forecasts on Friday, citing higher than expected energy and raw material costs.

The company, which produces automotive batteries as well as headphone batteries for the likes of Apple AAPL.O among others, said it envisaged only limited possibility of cost increases being passed on to customers.

It added that delays in two large orders with original equipment manufacturers meant it might not be able to deliver significant volumes this year.

The company had already cut its full-year outlook at the end of July, when it forecast revenue in a range of 880 million to 920 million euros ($858.4 million to 897.4 million) and adjusted core earnings of 200 million to 225 million euros for the year.

At that time it had expected third-quarter revenue between 210 million and 230 million euros, with adjusted core profit of 40 million to 50 million euros.

The stock was down 19% at 1125GMT, set for its biggest daily fall in almost three years. The shares lost 10% in early trade before the announcement.

A company representative was not immediately available for comment.

($1 = 1.0252 euros)

(Reporting by Linda Pasquini Editing by Rachel More and David Goodman)

((linda.pasquini@thomsonreuters.com; +48 58 7785261;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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