(Adds detail, analyst, executive comments, update shares)
* Sees annual profit slightly ahead of last year
* Downplays threats from Horizon's APR Energy buy
* Sees first-half trading profit at 2010 levels
* Increases fleet investment by 30 mln pounds
* Shares fall 3.7 percent, top FTSE loser
By Adveith Nair
LONDON, June 20 Aggreko , the world's
biggest provider of temporary power, disappointed investors
hoping for an upgrade to its full-year
earnings outlook , making it the
top blue-chip faller in London.
The company forecast full-year trading profit
slightly ahead of 2010, in line with prior views, pulling its
shares down 3.7 percent to 1840 pence at 0930 GMT.
"There may have been people looking for upgraded
expectations, which has been the case for Aggreko in the past --
they have upgraded quite a few times," Panmure Gordon analyst
Paul Jones said.
Aggreko shares which have already shed 5 percent since
Horizon announced a deal to buy out APR Energy, Aggreko's
largest competitor, last week.
Analysts say that deal will hand APR the funding it
needs to expand, but Aggreko Chief Executive Rupert Soames
downplayed the threat.
"The market is big enough for two and probably more
competitors," he said.
The company also raised its capital expenditure forecast,
which analysts said could assuage some of the concerns following
the APR deal.
"This is, by nature, a business that needs large amounts of
capital investment," Soames said. "We've just increased our
capex to over 400 million pounds in a single year, so we've got
a lot of firepower in terms of our ability to invest."
Aggreko plans to raise the rate of fleet investment by a
further 30 million pounds ($48.7 million), in addition to the
increase announced in April, taking forecast fleet capital
expenditure for the year to about 420 million pounds.
Panmure Gordon's Jones said this was a good indicator of the
short to medium-term strength of the market.
"With a number of different geographical markets looking
strong for the remainder of 2011, we remain confident of further
growth," he said.
Canaccord analyst Arabella Llewellyn said the move
highlighted Aggreko's position as "the leading, best
capitalised, player in the market".
($1 = 0.615 British Pounds)
(Reporting by Adveith Nair; Editing by Julie Crust and Will