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Vespa maker Piaggio profits drop, stock slides
Piaggio the Italian maker of Vespa scooters, posted a 21 percent drop in its quarterly core profit on lower sales, citing weak demand in Europe and the euro’s strength against the dollar and other currencies.
The result disappointed investors, sending its shares down as much as almost 5 percent before they recovered to stand at 1.55 euros, down 2.8 percent.
“Nearly all the numbers were below expectations,” said one analyst on condition of anonymity.
Shares in IMMSI <IMSI.MI, a holding company that owns 55 percent of Piaggio, were down 1.1 percent at 0.965 euros.
Piaggio said it would focus on controlling its cash flow and expanding in Asia, a market whose growth has helped compensate for a stagnant Europe, although signs of problems are looming in some Asian markets too.
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