HCI Capital AG: Issuing house lowers earnings forecast
HCI Capital AG has lowered its earnings forecast for the 2008 financial year. Instead of a year end, after tax net profit of €33mn, the firm now expects to "break even." This is largely attributable, according to the Hamburg based issuing house, to €24.8mn in write-downs on shares of commercial U.S. property loans which led, for the first half of the year, to a consolidated net loss before taxes of €18.5mn. The company still intends to place aggregate equity capital of €880mn before the year's end. During the first half of the year, the level of investment rose by 15% compared with the previous year, from €296.2mn to €340.5mn.