Danish food ingredients company Danisco posted a significant drop in profit for the nine-months to date, but said it expects to break even for the full year.
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CEO Tom Knutzen said the company has “felt the impact” of the current economic downturn and is suffering from “lower short-term earnings visibility”.
Knutzen said this has led to initiatives, including staff reductions, a salary freeze for 2009 and hiring restrictions across the organisation, as it acts “swiftly” to defend its short-term profitability.
Danisco posted a pre-tax profit for the nine months to 31 January of DKK177m (US$32m) compared to DKK987m for the comparable period in 2007.
Operating profit before special items (EBIT) also dropped, falling to DKK931m from DKK1.18bn in the previous year.
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By GlobalDataSales for the nine months however, rose 6% to DKK9.7bn from DKK9.1bn in the year-ago period.
Danisco maintained its forecast of fiscal full-year revenue of around DKK13bn and operating profit of around DKK1.15bn.
