Outotec (OMX: OTE1V), a Finnish technology and service provider to metal and mineral processing industries, improved earnings less than what was hoped for. Second quarter net sales were 288 million Euros. Profit before taxes came in at 11.2 million (5.7). Outotec says that the margin was affected by timing of the prohects and higher fixed costs related to long term growth targets.
The most positive detail in the report was a strong order intake, a full 532 million for Q2, which climbed over 50% on comparison period. This is a record quarterly order intake and puts Outotec’s order backlog at record levels as well (over 1.6 billion at the end of the quarter). Gold, base metals, aluminum and iron industries were the ones making the most of the orders.
Half a year EPS is 45 cents. The stock is down 5% to 34.25 Euros a share and is still priced for large growth. At the beginning of the week Outotec was touching 40 Euro level. The company maintains 2011 financial guidance and says that despite market turbulence, Outotec’s outlook remains good.
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