July 18 (Bloomberg) -- Waertsilae Oyj, the Finnish supplier of gas-fired power plants and ship engines, dropped the most in a year after electric-utility customers deferred orders and second-quarter results missed estimates.
Waertsilae fell as much as 5.2 percent, the steepest intraday decline since July 18, 2012, and was trading down 3.8 percent at 12:37 p.m. in Helsinki. Volume exceeded the three-month daily average by 61 percent.
Sales contracts for power plants fell 23 percent from a year earlier to 217 million euros ($285 million) in the quarter, Helsinki-based Waertsilae said in a statement today. Net income totaled 78 million euros, 15 percent less than the average of eight analyst estimates compiled by Bloomberg. The manufacturer said it will “continue to work” toward meeting full-year targets of as much as 10 percent revenue growth and earnings before interest and taxes of 11 percent of sales.
“The biggest disappointment regarding orders came from the power-plants unit,” analysts at FIM Bank Oyj, including Sanna Kaje, said in a report to clients today. “Overall, we consider the result as a disappointment, and the company’s comments slightly more cautious than before.”
Waertsilae’s stock performance was the worst today on the Stoxx 600 Industrial Goods and Services index. Lund, Sweden-based maritime-engine competitor Alfa Laval AB, which also reported second-quarter earnings today, helped push the index higher after saying group orders increased.
The Finnish company today named Pierpaolo Barbone as new head of the services unit. Jaakko Eskola, chief of the ship power business, was named deputy for Chief Executive Officer Bjoern Rosengren.
“Weakness in order intake was the most negative aspect of the report, showing that Waertsilae is also susceptible to uncertainty in the global economy,” Sauli Saumala and Juha Kinnunen, analysts at Inderes Oy, said in a note. “Guidance reiteration was somewhat expected, but considering early year’s weak results, pressures are increased for the second half.”
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