Shares of Central European Distribution fall by 37 pct.
The Mount Laurel-based vodka producer lowered its sales and earnings forecast for 2011 and announced a third-quarter net loss of $840 million.
Shares of Central European Distribution fall by 37 pct.
Mike Armstrong, Inquirer Columnist
Shares of Central European Distribution Corp. were down as much as 37 percent Friday after the Mount Laurel-based vodka producer lowered its sales and earnings guidance.
The company cut its projected 2011 sales range to $850 million to $950 million, from $900 million to $1.05 billion. It also slashed the earnings per share range to 25 cents to 45 cents, from 80 cents to $1.
Central European Distribution reported a net loss of $839.9 million, or $11.59 per share, for its third quarter ended Sept. 30. For the same three months of 2010, the company had net income of $99.9 million, or $1.42 per share.
The company said the loss was driven by an impairment charge for goodwill and trademarks of $674.5 million.
Net sales for the third quarter were $228.85 million, up 45 percent from $157.76 million for the same quarter in 2010.
In a statement, the company said it observed "an overall market environment of declining vodka consumption" and pricing pressure in its core markets of Poland and Russia.
In trading shortly before 2 p.m. Friday, shares of Central European were down $1.85, or 37 percent, to $3.19.
Mike Armstrong blogs about Philadelphia corporations and business-related topics. Contact him at 215-854-2980.
Reach Mike at marmstrong@phillynews.com.
