Shares in Loewe, the German manufacturer of television sets, fell by more than 30 percent on the Frankfurt stock exchange on Friday after the company said it is mulling a possible capital hike.
Loewe shares tumbled 36 percent to an intraday low of 1.86 euros and were showing a loss of 27 percent at 2.13 at around midday.
The day before, Loewe unveiled a 35-percent drop in sales in the first quarter of the current year and said its operating loss widened to 9.9 million euros owing to investment in new products.
“As seen across the entire industry, Loewe’s business in the first three months of the current year was also severely strained by the negative market trend,” said chief executive Matthias Harsh.
“Moreover, the difficult economic environment in Europe as a whole is having a negative impact on the buying habits of consumers.”
In order to improve the company’s capital resources, Loewe had “begun a process for the evaluation and implementation of several strategic options, including the option of a capital increase,” the company said.
Shares in German TV set maker Loewe nosedive
