YIT shares jumped as much as 12 percent to 15.20 euros, the biggest intraday gain since May 10, and was up 0.9 percent as of 4:24 p.m. The Helsinki-based company reported second-quarter net income of 46.1 million euros ($65.4 million), beating the average estimate of 44.1 million euros in a Bloomberg survey of 11 analysts.
Sales of Finnish business premises are picking up and residential sales are “continuously favorable,” the company said today in a statement. Opportunities for improving profitability exist particularly in Russian housing construction, it said. Finland accounts for about 40 percent of YIT’s annual revenue, while Russia generates about 14 percent.
Finland’s economy will grow by 3.9 percent this year, the Finance Ministry said on June 20. Unemployment fell to 8.4 percent in June from 8.8 percent a year earlier.
YIT reiterated a full-year forecast of “clear” growth in operating profit on rising revenue and citing “good” residential sales in Finland and Russia.
The gain at YIT contrasts with a decline of as much as 5.7 percent at Lemminkaeinen Oyj, Finland’s second-biggest construction company, which reported second-quarter net income of 12.3 million euros that missed the average 13.7 million-euro estimate of five analysts. Lemminkaeinen also forecast improving sales and pretax profit in 2011.
SRV Group Oyj, which ranks third in Finland’s construction industry, said yesterday that it had a second-quarter net loss of 2.1 million euros, compared with net income of 800,000 euros a year earlier. The stock dropped 5.6 percent, falling for a second day.
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