Bloomberg News

Rockwool Falls as 2013 Profits Seen Subdued: Copenhagen Mover

March 04, 2013

Rockwool International A/S (ROCKB), the world’s largest maker of stonewool insulation, fell the most in a year in Copenhagen trading on concern a slumping European construction market will hurt 2013 profits.

Rockwool fell as much as 6.6 percent, the most since March 6, 2012. The stock declined 4.8 percent to 675.50 kroner at 1:25 p.m. in the Danish capital, with trading volume at 322 percent of the three-month daily average.

Rockwool, based in Hedehusene, Denmark, said March 1 that 2013 net income will drop to about 700 million kroner ($122 million), missing the average estimate of 861 million kroner in a Bloomberg survey of analysts. Today, Danske Bank A/S repeated a sell recommendation on the stock, citing the 2013 forecast.

“The weak 2013 guidance is a reflection of the tough European outlook,” Danske, which previously had warned the earnings report may disappoint the stock market, said in a note to clients. “Given the high valuation, we believe better opportunities are found elsewhere.”

Nordea Bank AB today repeated a hold rating on the stock, saying investors should “wait for a setback” in the price before buying.

“Rockwool’s structural growth element is fully reflected at current valuation,” Nordea said in a note to clients. Rockwool’s 2013 forecast is “conservative,” the bank said.

To contact the reporter on this story: Christian Wienberg in Copenhagen at cwienberg@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net


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