Helsinki shares firmer at midday, Stora Enso gains, Outotec slides

Helsinki shares firmer at midday, Stora Enso gains, Outotec slides

	Published : Thu, 25 Oct 2007 09:39 By : Agencies Print this Story

HELSINKI (Thomson Financial) - Helsinki shares were higher in late morning trade, with Stora Enso gaining as investors cheered the group's plans to close down several of its mills, while Outotec was sharply lower as it repeated its full-year guidance.

At 11.42 am, the OMX Helsinki 25 was up 1.88 pct at 3,305.28 and the OMX Helsinki all-share index was 1.57 pct higher at 12,357.66 on 438 mln eur turnover.

Stora Enso R rose 4.09 pct to 12.23 eur after it said it anticipates approximately 380 mln eur, of provisions and fixed asset write-downs as non-recurring items in its financial results for the fourth quarter of 2007 as it announced capacity and job cuts.

Market shrugged off the weak third-quarter report Stora published this morning.

Of the other companies that published their third-quarter results today, Huhtamaki gained 6.25 pct to 9.18 eur.

The company's figures came softer year-on-year, a matter the market was expecting, according to market sources.

The group issued a profit warning on October 10 and traders noted that worse had been expected from the third quarter.

A leading Scandinavian brokerage said the sales figure of 582.4 mln eur came in above consensus estimates of around 568 mln eur.

It noted that the packaging group left its guidance unchanged and in line with the profit warning issued earlier in the month.

Rapala was 1.03 pct higher at 5.89 eur after it reported a slight improvement in its third-quarter results as seasonal slowdown in fishing tackle business was offset by growth in other markets like Australia and South Africa.

The company said it expects 7-12 pct growth in its full-year sales.

Outotec, another company that reported strong third-quarter numbers was 5.57 pct lower at 46.29 eur.

The company repeated its guidance saying full-year sales are seen exceeding 1 bln eur.

Operating profit to grow significantly from the 2006 level, exceeding 90 mln eur, it added.

Of the other companies that are expected to release their third-quarter results today, Metso was 2.42 pct firmer at 47.85 eur and M-real B up 7.97 pct at 3.93 eur.

Nokia added 1.57 pct to 27.11 eur.

azer.sawiris@thomson.com

afs/jfr

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