Kesla Oyj (KELAS), the Finnish maker of trucks and cranes used by the forestry industry, dropped the most in five months in Helsinki trading after saying sales will shrink, ending two years of expansion.
Kesla fell as much as 13 percent, the most since Aug. 4, making it today’s biggest decliner in OMX Helsinki All-Share Index. The stock fell 1 euro to 6.50 euros at 4:23 p.m. in Finland’s capital with trading volume more than five times the three-month average. The shares of the Joensuu-based company gained 61 percent last year.
Kesla said today that 2012 sales and profit will decline after it experienced a sudden slow-down in the fourth quarter of 2011 when operating profit plunged 78 percent. Finnish papermakers UPM-Kymmene Oyj (UPM1V) and Stora Enso Oyj (STEAV) have closed mills as they face competition from South American and Asian producers.
Kesla will lay off employees for as long as 90 days during 2012 in its Finnish factories of Joensuu and Kesaelahti, as orders are falling short of production capacity, Chief Executive Officer Jari Nevalainen said Dec. 8.
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