Placement|OP’s chief analyst Antti Saari considers, for example, listed companies in the forest sector to be interesting when the economy improves.
The summary is made by artificial intelligence and checked by a human.
Finnish companies’ earnings period from January to March was divided into two parts.
Sales were weaker than expected, but the total operating profit exceeded expectations.
Forest industry, metal industry and health care are winners at the end of the year.
The revival of global industry will stimulate the economy, OP believes.
Financial Group OP’s chief analyst Antti Saari estimates that Finnish companies’ January–March profit period went in two directions.
“Even though demand has been weak, the companies’ results have held up well considering the circumstances. We expect the economy to pick up in the second half of the year, and the winners at the end of the year will be especially the forest industry, the metal industry and health care”, says Saari in the announcement.
Although the results of Finnish companies continued to decline in the first quarter of the year, they exceeded expectations as a whole.
There were just as many positive and negative earnings surprises, Saari estimated.
Companies according to OP’s calculations, turnover was largely lower than expected, but the combined operating profit of the companies was up to three percent higher than expected.
According to Saari, the positive surprises in the first quarter were especially the forest industry, the food sector and the financial sector.
The biggest result disappointments were seen in the consumer goods sector, the trade sector and the energy sector.
Economy the pick-up is primarily influenced by the revival of global industry, which Finland as an industry-driven market benefits from, OP believes.
“We believe that in July–September at the latest, the combined operating profit of Finnish companies will be higher than the comparison period a year ago,” says Saari in the press release.
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