Swedish food company Sardus has lowered its earnings forecast for 2004 because of lowers sales and earnings at its Danish unit, 3-Stjernet.

The company said it is adjusting its profit forecast for 2004 from earnings in line with 2003, that is, profit before tax of about SEK110m, to earnings in the range of SEK90m (US$13.1m).

Sardus said its 3-Stjernet unit is reporting lower sales and earnings than expected as a result of lower export sales and increased competition in the Danish market. In addition, margins in the Swedish market weakened during the fourth quarter.

Sardus makes sandwich toppings and supplies frozen foods for institutional customers.