Outotec Rises as Metso Signals Mining Demand: Helsinki Mover
Stock Chart for Outotec OYJ (OTE1V)
Outotec Oyj (OTE1V), the Finnish supplier of smelters to mining companies, climbed the most in 2 1/2 months in Helsinki trading after Metso Oyj (MEO1V) said mining industry demand stayed at levels seen at the end of last year.
Outotec climbed as much as 5.3 percent, the largest intraday gain since Feb. 7. Shares in the Espoo, Finland-based company were 4.7 percent higher as of 3:28 p.m. local time. Volume was about two thirds of the daily average over the past three months.
“Demand for mining equipment and projects remained at the level typical of the end of last year,” Metso said in a statement. “Thanks to stable utilization rates at mines and our large installed equipment base, demand for our mining services remained excellent.”
Outotec fell 21 percent from this year’s peak on Feb. 20 until yesterday amid concern over low metal prices and declining demand from China.
Stockholm-based Sandvik AB (SAND) reported a decline in first- quarter profit today, hurt by falling demand for new mining supplies. Caterpillar Inc., the world’s biggest maker of mining equipment, yesterday cut its 2013 profit forecast to about $7 a share, compared with a January projection of $7 to $9.
“Metso’s message on activity around mining investments was surprisingly positive, there was no great bleakness,” Pekka Spolander, an analyst at Pohjola Bank Oyj said by phone. “One can talk about a relief which seems to have caught Outotec as well.”
Operating profit margin for Metso’s mining unit improved to 11.9 percent from 10.1 percent a year earlier even as sales for the unit fell 5 percent to 744 million euros ($967 million), the company said. It kept its full-year guidance unchanged. Metso advanced as much as 3.9 percent in Helsinki.
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