Valmet issued a negative profit warning, the market reacted immediately

Forest industry Valmet, which manufactures equipment and factories, issued a negative earnings warning. As a result, its stock took a sharp plunge at four in the afternoon.

The company estimates that its result will remain at the same level compared to last year. Even in the summer, Valmet predicts that the result will increase.

Last year, the comparable result before financial items, taxes and intangible assets was 619 million euros.

Valmet believes that the turnover will remain in line with the guidance it gave earlier, i.e. around 5.5 billion euros.

Company explains the situation by the fact that the market has developed more slowly than expected in Europe, the Middle East, Africa, China and the Asia-Pacific regions.

“Furthermore, market activity for board and paper process technologies has been slower than expected, and some customers have postponed their final investment decisions,” the company states in its stock exchange release.

Training said at the beginning of September change negotiations in the business of paper and cardboard machines in Finland. According to the company’s estimate, approximately 200 jobs may be lost permanently.

Valmet has more than 19,000 employees worldwide. In Finland, the company employs approximately 6,600 people.

American business is better on the mainland: the company announced in September from a trade worth one billion euros to Brazil. It is building a large pulp mill on the ground.