Bloomberg News

ZUE Falls to 2-Month Low as BRE Bank Cuts Estimate: Warsaw Mover

November 21, 2012

ZUE SA (ZUE), a Polish rail construction company, decreased to the lowest in more than two months after BRE Bank SA decreased its share-estimate, citing rising costs.

The stock declined as much as 4.7 percent, and traded down 2.3 percent at 5.88 zloty, the weakest since Sept. 4, as of 2:17 p.m. in Warsaw. Turnover amounted to 63 percent of the daily average from the last three months, data compiled by Bloomberg show.

BRE cut the company’s share-estimate to 6.2 zloty from 7 zloty and maintained its hold recommendation. ZUE’s “margins in the third quarter disappointed,” Maciej Stoklosa, a Warsaw- based analyst at BRE said in a note today. Contracts secured in 2009 and 2010 are “negatively affected” by rising costs, Stoklosa said. “For the whole industry 2012 is lost.”

Zue’s net income fell to 4.5 million zloty ($1.39 million) in the first nine months of 2012 from 11.2 million zloty a year ago, the Krakow, Poland-based company said in a filing on Nov. 12.

To contact the reporter on this story: Piotr Bujnicki in Warsaw at

To contact the editor responsible for this story: Gavin Serkin at

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