Amsterdam, Nov 3 - Dutch food group CSM NV said on Monday it expected a 10 to 15 percent drop in full-year core earnings as recessionary pressures and price hikes hurt demand.
The world's largest supplier of bakery products and lactic acid said it now expects earnings before interest, tax and amortisation (EBITA) and before exceptional items to be below the 153.7 million euros ($196.4 million) earned in 2007.
It said half of the decline in EBITA was due to currency movements. "We anticipate a challenging environment in the periods to come as demand weakens in our markets," CSM said in a statement.
It said recessionary pressures and the price increases due to higher raw material costs seen in the first half had continued into the third quarter. The company said EBITA in the first nine months fell 8.7 percent to 95.7 million euros while sales rose 2.9 percent to 1.89 billion euros. It planned to cut 200 jobs in Germany, France and the United States by the end of the year.