Waertsilae Climbs Most in Year as CEO Stays Optimistic on Growth
Waertsilae Oyj (WRT1V) rose the most in a year after the Finnish supplier of power plants and ship engines reiterated its full-year guidance for operating profit as engineering companies trimmed forecasts.
“Many Finnish engineering companies have experienced a little bit tougher developments than they expected at the start of the year,” Chief Executive Officer Bjoern Rosengren said in a phone interview today. “When we confirmed our guidance and people saw the third quarter was OK, I think it gave a little bit of comfort.”
At least 12 Finnish companies have cut their profit outlooks over the past six weeks, including Outotec Oyj (OTE1V), the Espoo-based smelter supplier that unveiled 500 job losses last week. Machinery makers suffering from reduced demand also include cargo-handling equipment maker Cargotec Oyj (CGCBV) and Hyvinkaa-based Konecranes Oyj. (KCR1V)
Shares in Helsinki-based Waertsilae gained as much as 7.6 percent, the most since Oct. 17, 2012. The stock traded 3.2 percent higher at 32.95 euros by 1:35 p.m. in the Finnish capital. Trading volume was more than double the three-month daily average.
Waertsilae posted third-quarter net income of 94 million euros, 1.2 percent lower than estimated by 13 analysts in a Bloomberg survey. Sales of 1.21 billion euros beat the average estimate by 2 percent.
Power plant unit orders fell 42 percent from a year earlier, hurt by delays in clients’ decision-making as prospects for economic recovery after the financial crisis stay fragile, the company said today in a statement.
Waertsilae lowered the top end of its forecast range for full-year sales to as much as 5 percent from 10 percent. The company reiterated its prediction for earnings before interest and taxes margin excluding one-time items at 11 percent.
“There has been turbulence in the markets, lately in the U.S. as well as the currency problems in the emerging markets,” Rosengren said. “We are optimistic about keeping our promises. There are big challenges, but so far we have delivered.”
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