Lemminkaeinen Drops After Cutting 2013 Profit Guidance on DelaysKati Pohjanpalo
Lemminkaeinen Oyj fell the most in five months in Helsinki after the Finnish builder reduced guidance for full-year profit on project delays.
The shares declined as much as 4 percent, the biggest intraday drop since Nov. 1, to 15.45 euros. The stock was down 3.7 percent at 15.51 euros as of 10:35 a.m., paring the gain to 8.9 percent this year. The volume of shares traded was more than 27 percent of the three-month daily average.
Full-year operating profit will probably match last year’s 50 million euros ($65.3 million) instead of rising, the Helsinki-based company said in a statement today.
Delays in getting permits from St. Petersburg authorities are postponing the start of some residential construction projects, Lemminkaeinen said. Eastern Europe and the Baltic countries accounted for 12 percent of revenue last year, according to data compiled by Bloomberg. Paving season is about six weeks behind plans in northern Europe, the company said. That region contributed 86 percent of sales in 2012.
Lemminkaeinen said it will book a loss of about 6 million euros from divesting part of its telecommunications business, about half of which is recorded in the first quarter.