Environmental solutions company Lamorin turnover and profit clearly fell short of analyst expectations in the second quarter.
Lamor’s turnover in April-June was 27.1 million euros, compared to 33.8 million euros in the comparison period a year earlier. Following the company Inderes expected the turnover to have been EUR 35.0 million and Danes 36.0 million.
The analysts of both Inderes and Danske warned in advance that the company’s quarterly forecasts are subject to considerable uncertainty due to the timing of large individual projects.
“The decrease from last year is explained by the postponement of the tenders, the previously anticipated lower deliveries of the Bangladesh project compared to the comparison period, and the update made to the total cost estimate of the Kuwait project, as a result of which the cumulative turnover and profitability of the project decreased slightly”, CEO of Lamor Johan Grön says in the press release published by the company.
The company’s adjusted operating profit fell to 1.4 million from 3.7 million in the comparison period. The reported operating profit, on the other hand, fell to 1.3 million from the previous year’s 3.7 million. Inderes expected the operating result to be at the level of the previous year at 3.7 million and Danske at 4.4 million.
“The decrease in profitability from the comparison period was primarily due to the lower level of turnover. We improved our operating profit margin from the first quarter of the year, and without the cumulative update to the Kuwait project, the adjusted operating result for the second quarter would have been at the same level as the comparison period. However, we are not yet at our target level,” Grön says.
In the second quarter, Lamor received orders of 69.3 million euros, which was many times the 9.6 million euros of the previous year. In May, the company received a significant three-year environmental protection contract worth EUR 55 million in Saudi Arabia.
Instructions unchanged
In connection with the results announcement, Lamor kept its guidance for the current year unchanged.
Lamor expects that its net sales this fiscal period will be at least at last year’s level. Last year, the company’s turnover was 122.5 million euros.
Source: www.arvopaperi.fi
