Parmalat Struggles To Maintain Earnings

Shares in Italian dairy firm Parmalat fell by 11% on May 15 2008 after the firm posted a sharp decline in earnings for the first quarter of 2008. The firm's earnings before interest, tax, depreciation and amortisation - a popular measure of cashflow - fell by 16% to EUR63.9mn, well below many analysts' estimates. The high price of milk has been cited as the main reason being these lacklustre results, and the high price has not only damaged margins but also hampered Parmalat's compositeness in its home

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