Andritz Shares Decline on South America Provisions: Vienna MoverJonathan Tirone
Andritz AG fell the most in five months after the Austrian industrial supplier warned that rising provisions from delays at a South American pulp mill will hurt full-year earnings
The stock fell as much as 9.4 percent to 42.51 euros, the biggest intraday drop since Aug. 7, after the Graz, Austria-based company said that further charges “in the middle double-digit million-euro range” would have a “significant negative impact” on earnings. More than 475,000 shares were traded, or more than triple the three-month daily average. The stock was down 6.3 percent at 43.98 euros at 4:55 p.m.
“The reasons for the provisions are additional project cost overruns resulting from strikes on the site and additional expenses for construction,” the company said. Andritz sees adjusted earnings before interest, tax and amortization falling by about 55 percent to 160 million euros ($218 million) in 2013.
Andritz, the world’s second-biggest hydropower turbine maker, said sales will be between 5.7 and 5.8 billion euros, as order intake climbs about 12 percent to 5.5 billion euros. The average of analyst estimates in a Bloomberg survey was for revenue of 5.77 billion euros.
The opening of the pulp mill, a Uruguayan joint venture that includes Helsinki-based Stora Enso Oyj, has been delayed and is now expected in the first quarter of this year, Andritz said. Andritz will publish its full-year results on Feb. 28.