Fugro shares drop sharply after disappointing Q1 update

AMSTERDAM Tue May 6, 2014 4:17am EDT

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AMSTERDAM May 6 (Reuters) - Shares in Dutch geotechnical services group Furgo dropped nearly nine percent after the company said it performed weakly in the first quarter and gave a cautious first half outlook due to poor weather conditions.

At 0815GMT Fugro shares were down 8.9 percent at 42 euros ($58.29) in Amsterdam. The stock closed 2 percent lower on Monday.

Fugro, which provides services to the energy and infrastructure industries, said earlier on Tuesday its quarterly margin decreased significantly year-on-year in the first quarter because of adverse weather conditions in multiple regions, which it said affected offshore activities in all divisions and aerial mapping activities.

Sales, excluding multi-client sales, rose 6 percent, which missed market expectations.

For the first half of 2014, Fugro said it expected high single digit revenue growth.

ING, which has Fugro on its list of least favourite Benelux stocks, said in a trading note the numbers were disappointing and that the outlook looked "quite weak." ($1 = 0.7205 Euros) (Reporting By Anthony Deutsch; Editing by Sophie Walker)

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