Vard

Vard: SCB note that the worst is likely over but margin recovery rate unclear, as such house lower its TP to $0.82 on a reduced margin estimate following 2Q losses and talks with management. Think 2Q margin marks the bottom, although the degree of potential improvements in 2H and 2014 is unclear; 3Q margins should provide a clearer roadmap An improved control and reporting system installed in Brazil should help identify problems earlier Overall, Management is optimistic over new orders for 2H13.