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UPDATE 1-Finland's Vacon misses Q2 profit expectations
July 30, 2014 / 7:50 AM / 3 years ago

UPDATE 1-Finland's Vacon misses Q2 profit expectations

* Sales, operating profit below analyst forecasts

* Shares down 3.5 pct

* Analysts see increased risk of missing 2014 profit guidance (Adds shares, analysts)

HELSINKI, July 30 (Reuters) - Finnish electric drive maker Vacon on Wednesday reported second-quarter operating profit below analyst forecasts, hit by an unexpected fall in sales and sending its shares down.

It posted an operating profit of 11.6 million euros ($15.6 million) for the April-June quarter, up from 10.4 million a year earlier, but short of the 12.7 million forecast by analysts in a Reuters poll.

Sales slipped to 103.3 million euros, short of analysts’ expectations of a rise to 109 million.

The weaker-than-expected results hit the shares, which were down 3.5 percent at 27.25 euros at 0730 GMT.

Vacon kept its full-year sales and profit forecasts unchanged, saying it expects revenues to rise 5-15 percent and an adjusted operating profit margin to be 11-13 percent.

Analysts said that the chance of the company not meeting that outlook had increased.

“After weak first quarter, another weak quarter,” FIM analysts said in a note to investors.

“There is some comfort in them keeping 2014 guidance unchanged, but the risk of a profit warning is growing.”

For the first half of the year, sales were down 1.1 percent and the company’s operating margin was 9.5 percent. ($1 = 0.7460 Euros) (Reporting by Sakari Suoninen; editing by Mark Potter and Jason Neely)

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