* Wessanen Q3 EBIT from continuing operations down 71 pct
* 16.1 million euro writedown at Karl Kemper and Righi
* Probe ended at ABC unit, no more changes to 2008 results
* Expands divestment programme
* Shares down 9.2 percent, top faller on midcap index
(Adds analyst comments, details, updates shares)
By Aaron Gray-Block
AMSTERDAM, Oct 28 (Reuters) - Dutch food group Wessanen NV's third-quarter operating profit plunged 71 percent due to poor performances in the U.S. and Europe, and it expects a loss next quarter.
It also said it aimed to sell off more of its businesses.
The company, which put on hold the sale of its North American operations while it investigated accounting problems, said the probe at the American Beverage Corporation (ABC) unit had ended without further incident after the 15 million euro ($22 million) overstatement it revealed in July.
Earnings before interest and tax (EBIT) from continuing operations fell to 5 million euros, after stripping out units set for disposal. Sales fell 4.5 percent to 171 million euros.
"Wessanen reported a poor set of third-quarter earnings figures, as the core business comes under increasing pressure," SNS Securities analyst Richard Withagen said, adding there was also little news about its strategic repositioning.
"Finally, the company guides for a weak performance of its core business in the fourth quarter, increasing uncertainty also about 2010 and beyond."
Shares in Wessanen were down 9.2 percent at 3.76 euros at 0910 GMT, the biggest faller in the midcap index.
"Our operational performance this quarter at ABC and Wessanen Europe was down from last year, and we expect not to make an operating profit in the fourth quarter of this year," Chief Executive Frans Koffrie said in a statement.
Including the discontinued operations, sales were 381.8 million euros for the quarter, below the average forecast of 395 million euros.
BREAK-UP STORY?
Wessanen, which is struggling with a heavy debt burden, said besides the sale of its Tree of Life North America operations, it would also sell frozen food firms Karl Kemper and Righi, but not for as much as their book values, which it had accordingly written down by 16.1 million euros. It said divestments were on track, but gave no further details.
Its Benelux and German operations are also being restructured to reduce complexity.
"Wessanen is evolving into a break-up story. The group will shrink two-thirds as a result of disposals. We anticipate Frozen Foods will also be sold. The remaining business (Wessanen Europe) will be a nice takeover target," KBC Securities analyst Pascale Weber said.
The company booked a net third-quarter loss of 20.1 million euros compared with an 11.8 million euro profit last year due to a lower operating result, higher financing charges and the Karl Kemper and Righi writedown.
Net financing costs also increased by 5.3 million euros due to an amendment of Wessanen's credit facility. (Editing by Erica Billingham/Will Waterman) ($1=.6740 Euro)