Aggreko shares tumble on sales warning
Lower demand for generators in 2013 could have $160m revenue impact
Temporary power firm Aggreko has recorded a steep 20% fall on the FTSE 100, after the company issued a profit warning on lower expected sales next year.
The company has said that lower troop numbers in Afghanistan, Japan’s recovery after the 2011 tsunami and the absence of a summer Olympics boost to revenues, will have a consequent impact on the company’s 2013 performance. Combined, the firm is expected to take a US $161 million hit on revenue through the next twelve months.
Reuters reported CEO Rupert Soames as saying: “We have got a double whammy going into next year. We have got a weakening demand environment in terms of our power projects business…the other whammy going on is that we have got about 100 million pounds of revenue…that is not going to recur in 2013.”