Surprise loss drops Lehto’s share plunge – Analyst: “Turnover does not seem to materialize in line with our expectations”


Construction group Lehto the share has plummeted since the company’s earnings announcement.

Lehto’s operating loss decreased to EUR 1.8 million in January-March from EUR 3.5 million a year ago. However, net sales clearly decreased to approximately EUR 88 million from 119 million in the comparison period.

Interim figures across the board were weaker than the analysis company Inderes had been waiting.

“Net sales clearly decreased from the comparison period, contrary to our growth expectations. A bigger disappointment, however, was the loss of operating profit as in the comparison period, ”the analyst estimates. Olli Koponen in its earnings commentary. Inderes’ recommendation for the share was “reduce.”

According to the company, low volume levels vaccinated profitability. Koponen estimates that low-margin projects also weighed on the result.

“The turnaround does not seem to be realizing exactly as expected, but at least we are moving in the right direction,” Koponen writes.

The net sales outlook is weak, as Lehto’s order backlog decreased. At the end of March, it was EUR 393 million, about 20 percent lower than a year ago.

Lehto expects its full-year net sales to decrease from last year. It expects operating profit to finally turn positive.

For more than a year, Lehto has gone through a rehabilitation program, which has paid off. The operating result for 2020 was about EUR 3 million negative, while in 2019 the loss was about EUR 42 million.

Koponen estimates that the current guidelines seem cautious in relation to his expectations.

“The outlook further highlighted market uncertainty regarding the koruna, as rising raw material costs and material availability may also pose challenges this year.”

Lehto’s share price fell by more than 17% at EUR 1.83 at 11.30.


Source: Arvopaperi by www.arvopaperi.fi.

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