B&O makes second profit warning

Bang & Olufsen is renowned for its stylish designs

Danish hi-fi and television firm Bang & Olufsen (B&O) has been forced to issue its second profit warning in three months, sending its shares down 20%.

Blaming tough trading in Europe and the US, it now predicts it will make annual profits of between 200m crowns ($41.2m; £20.5m) and 250m crowns.

This is almost half B&O's January prediction of 360m to 400m crowns for its financial year to the end of May.

The company sacked former boss Torben Sorensen back in January.

Mr Sorensen left the company after it announced a 37% decline in half-year profits.

B&O has yet to replace him in the chief executive position.

'Suffering'

"It's clear that B&O feels the effects of the economic downturn," said Rune Moller, an analyst at Jyske Bank.

"Private consumption is really slowing and B&O is suffering."

Mr Moller said B&O could do with a new range of products to help boost sales.

It predicts that the company will need at least a year to turnaround its fortunes.

B&O's key markets are Denmark, the UK, Germany, and the US.