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SGS might have to revisit 2014 goals due to weak Europe
July 17, 2013 / 9:05 AM / 4 years ago

SGS might have to revisit 2014 goals due to weak Europe

GENEVA (Reuters) - The world’s biggest testing and inspection company SGS SGSN.VX might have to revisit ambitious targets for 2014 due to ongoing weakness in Europe, its chief executive said on Wednesday.

“With the slowdown in Europe, it’s going to require some serious thinking whether we can actually achieve that goal and we have to revisit that with the board, probably towards the end of the year,” Chris Kirk told a news conference.

“When we looked originally at 2014 one of the premises on which the plan was built was that there would be no economic downturn, but guess what?”

SGS launched a strategic plan in 2010 to increase revenues to 8 billion Swiss francs ($8.50 billion) by 2014 and achieve an operating income of 1.6 billion and earnings per share of about 140 francs.

Earlier on Wednesday, SGS missed expectations for first-half net profit, hit by a charge for restructuring as weak demand hit its minerals services, sending its shares down.

($1 = 0.9417 Swiss francs)

Reporting by Emma Farge, writing by Emma Thomasson

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