YIT announces spin-off after weak quarter
HELSINKI (Reuters) - Finnish building company YIT (YTY1V.HE) said it would spin off its European building services unit after reporting weaker-than-expected results for the fourth quarter.
YIT said its building services operations will split from the construction business, be named Caverion and list on Helsinki's Nasdaq OMX bourse.
The company said the move would allow it to focus on its construction services business, which has been growing thanks to strong sales in Russia.
YIT said fourth-quarter operating profit for segments, which includes earnings from works in progress, fell 11 percent from a year earlier to 67.5 million euros ($91.5 million). Analysts on average expected 74.5 million euros, according to a Reuters poll.
The company said residential sales in Russia hit a record high, but revenue decreased in building services operations in northern Europe. ($1 = 0.7376 euros)
(Reporting by Helsinki Newsroom; Editing by Ken Wills)