* Revenue to be hit by Afghan military spend, Japan
* Outlook for international power business weakens
* Sees 2012 in line with expectations
* Shares down 16 percent
By Isla Binnie
LONDON, Dec 17 British group Aggreko
has issued its second profit warning in two months, saying there
would be less need next year for its generators, which provide
temporary power worldwide.
Fewer U.S. troop numbers in Afghanistan, a likely fall in
business in Japan as it recovers from the 2011 earthquake, and
the absence of a summer Olympics would combine to take 100
million pounds ($161 million) off revenue, Aggreko said.
Analysts moved quickly to downgrade their forecasts, and
shares in Aggreko, whose kit powers major events and covers
electricity shortfalls, were down 16 percent to a 12-month low
at 1,793 pence at 1110 GMT on Monday.
"We have got a double whammy going into next year," chief
executive Rupert Soames told Reuters. "We have got a weakening
demand environment in terms of our power projects business ...
the other whammy going on is that we have got about 100 million
pounds of revenue ... that is not going to recur in 2013."
On Oct. 19, Aggreko warned on 2012 profit, saying it would
be hit by bad debt provisions and foreign exchange rates.
Aggreko said it was waiting to learn whether contracts in
Japan will be extended into the second half of 2013, foxing
accurate predictions. "(It) is difficult at this stage to
provide a definitive view of the likely pattern of trading."
Seymour Pierce said it expected the consensus for 2013
pretax profit to come down to about 355 million pounds from
about 400 million. It maintained a "buy" rating on the stock.
"The underlying drivers, namely the continued supply demand
power imbalance in developing countries, remain strong," analyst
Caroline de La Soujeole said. "However, contract awards can be
Aggreko said its 2012 performance was in line with
expectations, and earnings per share should grow at least 15
Its local business division, which operates mainly in mature
markets, was expected to post underlying revenues around 8
percent higher in the fourth quarter, while underlying margins
on the international side were lower.