Outotec Gains as Quarterly Sales, Profit Beat Analysts Estimates
Outotec Oyj, a Finnish supplier of mining machinery and services, rose the most in 2 1/2 months after beating analysts profit and dividend estimates.
Outotec gained as much as 6.8 percent, the most since Nov. 23. Shares in the Espoo, Finland-based company traded 4.8 percent higher at 48.71 euros at 1:43 p.m. in Helsinki, making it the leading gainer among benchmark stocks in the Finnish capital. Volume traded was almost two times the daily three- month average, according to data compiled by Bloomberg.
“The mood in the world economy has somewhat improved during the past few months but the positive trend is still fragile,” Chief Executive Officer Pertti Korhonen said in a statement today.
Fourth-quarter sales rose to 650 million euros ($882 million) from 497 million euros. Analysts had estimated sales of 596 million euros, according to a Bloomberg survey. Net income increased to 52 million euros, 16 percent above the mean estimate of 11 analysts.
The company is seeking to grow its maintenance business to an annual 1 billion-euro of sales by the end of 2017, supported by contracts like long-term copper plant service agreement in Russia announced last month, a deal CEO Korhonen said he was “especially delighted” with.
Outotec proposed raising the dividend to 1.20 euros a share from 0.85 euros a year ago, beating an estimate of 1.10 euros by analysts in a Bloomberg survey. The company forecast sales this year ranging from 2.1 billion euros to 2.3 billion euros.
The board proposed electing elevator maker Kone Oyj’s CEO Matti Alahuhta as chairman. The company also proposed issuing three new shares for each existing share held.
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