UPDATE 1-Aker Yards Q4 core profit rises 15 pct

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Fri Feb 16, 2007 2:46am EST

(Adds details, shares)

OSLO Feb 16 (Reuters) - Norwegian shipbuilder Aker Yards AKY.OL reported a marginally higher-than-expected rise of 15 percent in core profits on Friday and said it maintained the outlook given in its third-quarter report.

Earnings before interest, tax, depreciation and amortisation

(EBITDA) rose to 401 million Norwegian crowns ($65.20 million) in the three months to the end of December from 348 million in the same quarter a year earlier.

The result overshot analysts' average expectation of 396 million crowns in a Reuters survey where estimates had ranged from 342 million to 428 million crowns.

Aker Yards said in October it expected a turnover of 30 billion Norwegian crowns in 2007, and a turnover of 35 billion crowns in 2008.

"The market for cruise vessels and the market for offshore and specialised vessels continue to be positive and are expected to remain strong throughout the year," Aker Yards ASA said in a statement. "The market development for merchant vessels such as container vessels is anticipated to continue to be weak going forward, while other types of merchant vessels are expected to develop positively."

Aker Yards' revenues rose to 7.8 billion in the fourth quarter, up from 4.9 billion and beat analysts' forecast of 7.3 billion. For the whole of 2006, revenues were 25.86 billion.

"After the small dip we had in the third quarter it is positive that we've returned to a good development," Chief Executive Karl Erik Kjelstad told Reuters.

"As we've said before the cruise segment is in a period with low margins. Within merchant vessels the margin development is positive, as is the same within offshore," Kjelstad said.

Aker Yards said order intake in the fourth quarter was 8.9 billion crowns, giving an order backlog of 79.4 billion by the end of 2006, comprising 149 vessels.

Shares in Aker Yards closed at 490 crowns on Thursday and trade is due to resume at 0800 GMT.

((Reporting by Marianne Fronsdal; editing by Paul Bolding; Reuters Messaging: rm://marianne.fronsdal.reuters.com@reuters.net. Email: marianne.fronsdal@reuters.com, +47 22 93 69 73))

($1=6.150 Norwegian Crown) Keywords: AKERYARDS RESULTS

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