Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Metso Declines as Danske Sees Mining Weakness: Helsinki Mover

Don't Miss Out —
Follow us on:

May 22 (Bloomberg) -- Metso Oyj, a Finnish maker of rock crushers and mineral-processing equipment, fell the most in seven weeks after Danske Bank A/S urged clients to sell the stock after Australian suppliers signaled weaker mining demand.

Metso dropped as much as 4.4 percent, the biggest intraday decline since April 2. Shares in the Helsinki-based company traded 3.6 percent lower at 12:54 p.m., making it today’s biggest decliner among Finnish benchmark stocks. Its trading volume in Helsinki exceeded 85 percent of the three-month daily average.

Profit warnings from several Australian mining contractors indicate that suppliers are starting to feel the effects of postponed mining projects, Danske analysts said in a note today, dropping Metso’s recommendation from hold. Mining and energy projects worth about A$150 billion ($147 billion) have been delayed or canceled in the past year in Australia.

Australia’s Transfield Services Ltd., Fleetwood Corp. and UGL Ltd. recently downgraded their profit forecasts as major customers defer projects amid falling commodity prices. BHP Billiton Ltd., the world’s largest mining company, Glencore Xstrata Plc and Vale SA are among those deferring projects and cutting back on spending.

Outotec Oyj, a Finnish mining equipment supplier, was downgraded to hold from buy by Danske. Its shares declined as much as 2.1 percent.

“While the warning companies mainly operate in Australia, they cite global demand weakness both in capex and aftermarket businesses,” Danske’s analysts said.

To contact the reporter on this story: Kasper Viita in Helsinki at kviita1@bloomberg.net

To contact the editor responsible for this story: Christian Wienberg at cwienberg@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.