HELSINKI, July 18 Finnish IT services provider
Tieto on Friday reported a surprise fall to its
quarterly earnings as customer insourcing hit its product
development service business.
Tieto's second-quarter operating profit, excluding one-off
items, was 30 million euros ($40.6 million), less than analysts'
average expectation of 34 million and a tad short of 30.6
million euros posted a year earlier.
Second-quarter sales fell to 386 million euros from 417
million in the same period a year earlier, and were just below
the Reuters poll forecast average of 389 million euros.
The company has been slashing costs over the past year to
cope with weak demand, particularly from the telecommunications
($1 = 0.7394 Euros)
(Reporting By Jussi Rosendahl; Editing by Sakari Suoninen)