Sotkamo Silver plummets after the earnings report, Konecranes clearly on the rise

On Friday morning, all four earnings announcements of the day were heard, when construction company YIT, crane manufacturer Konecranes, electronics contract manufacturer Incap and mining company Sotkamo Silver shared their numbers.

The general index of the Helsinki Stock Exchange was quoted after the opening with a 0.3 percent increase at 9,778 points.

The price reactions and exchange volumes are summarized in the table at the end of the story.

Construction company YIT:n operating profit adjusted for non-recurring items was EUR 7.0 million in the second half of the year, which was in line with analyst expectations. A year ago, the company guaranteed an operating profit of 14.0 million euros.

The order backlog at the end of June was 2,980 million euros, while at the end of March the value of the order backlog was 3,091 million euros.

“In Finland, the worst slowdown of the market is behind us, and we are starting to approach the end of the cycle. The supply of new apartments on the market is significantly decreasing, and thus the peak of the number of unsold completed new apartments in Finland is behind us. However, the Finnish housing market is not expected to significantly improve in 2024”, CEO Heikki Vuorenmaa evaluates in the announcement.

Crane manufacturer Konecranes the profit situation improved even more in the second quarter. The profit improvement was expected, as the company issued a positive profit warning for this year in June.

Konecranes’ comparable ebita margin increased to 147.3 million euros in April–June from 98.3 million euros a year ago. Database by Vara Research based on the eight analyst forecasts collected, the company’s comparable ebita margin was expected to increase to 114.6 million euros on average in April–June.

“Although customer decision-making takes a little longer in larger industrial projects, our sales prospects are still good and we are constantly receiving new requests for offers,” describes the CEO Anders Svensson in the results review.

Electronics contract manufacturer Incap’s adjusted operating profit fell to 7.0 million euros from 8.3 million a year ago, while Inderes expected 7.3 million euros.

Turnover rose to 57.6 million euros in April-June from 56.4 million euros a year ago.

The increase in turnover in the second quarter came mainly from Incap India compared to the first quarter of the year. A business transaction in the United States also had a positive effect on turnover.

“We expect the turnover to continue to grow quarterly during the year. With the increase in turnover, we also expect our profitability to improve”, CEO Otto Puck comment.

Incap raised its guidance earlier in July and now expects that the net sales in 2024 will be higher than in 2023 and the operating profit will be at the same level as in 2023.

A mining company Sotkamo Silverin production in the second quarter was 274,000 ounces of silver, compared to 383,000 in the comparison period last year. The analysis house that follows the company Inderes anticipates 390,000 ounces of silver.

“During the end of the year, as mining reliability improves and new quarries open, we expect production volumes to return to the previous good level. For the whole year, we still expect to be in line with our guidelines, but the realization of the guidelines requires that the silver content and mining volumes rise as planned in the second half of the year”, CEO Mikko Naked evaluate.

Married nosty Vaisalan target price to EUR 46.00 from EUR 42.00, but the hold recommendation remained unchanged.

Inderes raised Vaisala’s target price to EUR 48.00 from EUR 43.00, but the add recommendation remained unchanged.

Inderes counts Liquid target price to EUR 21.00 (previously EUR 21.50), the add recommendation remained unchanged.