Bang & Olufsen, the Danish luxury electronics producer, expects stronger profits in 2013.
Although the eurozone doesn’t show signs of recovering from the debt crisis, Bang & Olufsen forecast increased sales in the following year due to the new products launched. In B&O’s March-May quarter, the company’s pretax profits increased 10% to 77 million Danish crowns ($12.8 million) compared with the same period last year. Shares also increased 11% to 71.00 crowns. B&O said that the increase in sales was due to the new products launched such as the BeoVision 12 plasma television, the BeoSound 5 Encore sound system and the new BeoLab 12 wallmounted loudspeakers.
“The challenging macroeconomic outlook, the low level of consumer confidence and the company’s high exposure to Europe lead to an uncertain trading environment ahead,” said Bang & Olufsen Chief Executive Tue Mantoni.
The company expects stronger profits based on its auto business and its new brand B&O PLAY. B&O manufactures sound systems for luxury cars such as Audi, Mercedes and Aston Martin. Although the company was affected by the global economic crisis, it remains optimistic that the new products launched in April and the TV sales during the Olympics and European football championships will boost profits in the fourth quarter.