* Q2 sales grow 9 pct vs 21 pct in Q1
* Sees H1 sales up about 15 pct, trading profit up 20 pct
* Ups 2012 fleet investment by 50 mln stg to about 415 mln
* Shares down 4.4 pct, top FTSE fallers
By Adveith Nair
LONDON, June 15 Britain's Aggreko, the
world's biggest temporary power provider, said it expects
first-half sales to grow 15 percent, signalling growth slowed in
the second quarter, news that disappointed investors and sent
its shares down 3 percent.
The company's first-half sales forecast indicates growth of
about 9 percent in the latest second quarter, down from a much
higher rate of 21 percent in the first quarter.
The slowdown in the second quarter of 2012 is in stark
contrast with last year, when the rate of underlying growth had
accelerated to around 22 percent from about 18 percent in the
"All regions have slowed into the second quarter (2012),
especially North America," analysts at Bank of America Merrill
"Aggreko is a 'good news stock' and the market tends to
expect an upgrade (from the company) ...Although this is no
downgrade, it could weigh against the stock," the analysts
Shares in the company, which provides generators to cover
electricity shortfalls or power live events, were down 4.4
percent to 2,065 pence by 0921 GMT, and were the top losers on
Britain's blue-chip FTSE index.
Aggreko, however, said it would deliver good growth in 2012,
and increased its fleet investment for the year by 50 million
pounds ($77.7 million) to about 415 million pounds, citing
increased order intake at its International Power Projects (IPP)
business, which is likely to top 700 megawatt in the first half.
Analysts at Citi said growth at IPP should re-accelerate in
the second half given 'excellent' order intake, but warned the
company's Local Business unit could remain more subdued, in line
with previous guidance.
Aggreko said the weakening macroeconomic environment would
reduce the underlying rate of growth at its local business unit
in the second half, but added this would be partly offset by the
impact of the London Olympics, a contract the company values at
about 50 million pounds.
The company has in the past powered other high-profile
sporting events, including the soccer World Cup, the Vancouver
Winter Olympics and the Asian Games in 2010.
Aggreko currently expects underlying sales to grow by about
15 percent in the first half and underlying trading profit to
rise by around 20 percent.
For the same period a year ago, Aggreko had reported a
trading profit of about 127 million pounds on sales of 637.2