Signs of improving outlook for Finnish industry

Profitability of industrial companies in Finland is expected to improve this year, according to a forecast by Nordea financial group.

The total sum of profits of the industrial companies listed on the Helsinki stock exchange is expected to grow during the second quarter of this year compared to the corresponding period last year, according to a forecast by Nordea, the largest financial services group in Northern Europe.

Reported in the Finnish newspaper Helsingin Sanomat, Nordea forecasts that the improvement in the profitability of companies in the forest industry, metal industry and mining industry that began last autumn is expected to have continued in the second quarter this year. However, Nordea also expects the total turnover of industrial companies to have fallen by 4% in the second quarter.

New orders and investments on the rise

Other sources quoted by Helsingin Sanomat also suggest that the outlook for Finnish industry is improving. New orders received by industrial companies have increased since February, according to Statistics Finland. Responses to a questionnaire by the Confederation of Finnish Industries reveal that industrial companies expect to increase their investments this year.

Hannu Angervuo, Fund Manager at eQ Asset Management, told Helsingin Sanomat that he believes the financial results of industrial companies in Finland could improve by the end of this year. According to Angervuo, the prospects for Finnish industry depend a great deal on total demand in the eurozone, where about 40% of exported Finnish goods were directed in May this year.

Source: Helsingin Sanomat