Strabag SE (STR), central Europe’s biggest construction company, plummeted after cutting its guidance for 2012 earnings before interest and taxes by a third.
Shares fell 5.9 percent to 17.84 euros at 5:30 p.m. close of trading in Vienna, their biggest decline since Sept. 5.
The Ebit target of 300 million euros ($364 million), which previously had been described as “more than ambitious,” now “will not be achievable” and probably only will be reached by “about two thirds,” the company said in a statement today.
The reasons for the changed guidance are “delays of public authorities in Central and Eastern Europe in dealing with claims, especially in Poland, the cautious valuation of some construction projects and the ruinous price war in the raw materials business,” Strabag said.
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