Cargotec Drops for Fourth Day on Outlook Concern: Helsinki Mover
Cargotec Oyj (CGCBV), a Finnish supplier of cargo-handling equipment, fell to the lowest price in four months on concern it may cut earnings forecast after Konecranes Oyj (KCR1V) and Terex Corp. (TEX) warned their profitability is weakening.
Cargotec declined as much as 5.2 percent to 20.70 euros, the lowest price since Feb. 12. Shares in the Helsinki-based company fell 5 percent at 1:37 p.m. in the Finnish capital, the biggest loss in the OMX Helsinki 25 index. Trading volume was about 70 percent of the three-month daily average in the stock’s fourth day of decline.
“Cargotec’s profit warning also seems likely,” Mikael Rautanen, an analyst at equity-research company Inderes Oy said in a note today. He lowered his price estimate to 22 euros from 27 euros. “The company’s weak first-quarter results left a lot of profit to catch up for the rest of the year.”
Cargotec’s first-quarter profit was one third of what 10 analysts had estimated in a Bloomberg survey. Port equipment-makers are suffering along with most of the world’s merchant fleet as the global financial crisis and slowing investments cause overcapacity and drive shipping rates lower.
SEB AB today cut its rating on Konecranes to hold after the company said yesterday its equipment unit profitability outlook has weakened. Terex’s material handling and port solutions unit is suffering from softer demand, the Westport, Connecticut-based company said in a statement on June 17. Cargotec’s MacGregor unit offers similar solutions for maritime cargo handling.
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