Bang goes pop

9 Jan 2008 By William Echikson

While the Danish luxury electronics company s mostly European customers should be price insensitive, they have rushed to cut back spending. The UK represents the biggest problem. Other luxury companies could experience similar turbulence.

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Denmark's luxury stereo and television maker Bang & Olufsen posted a 31% fall in firsthalf operating profit on Wednesday and cut its fullyear outlook, pushing its shares down by 29 percent.

The company's profit for the six months ending on November 30 was DKr 166m, down from DKr 240m in the same period last year. Sales were up 8% in North America, but were flat in Germany and down 6% in the UK.

B&O expects consumers to continue cutting back this year and it owered its fullyear operating profit outlook.

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