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UPDATE 2-Ordina H1 beats expectations, no outlook

Published 08/25/2009, 05:36 AM
Updated 08/25/2009, 05:39 AM
ORDN
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* Recurring EBITA 17.2 mln eur vs 15 mln average forecast

* Sees some "cautious signs" of market stabilization

* Gives no outlook for 2009

* Shares down 2 pct, reversing 7 pct gain (Adds CEO, analyst comment, shares)

AMSTERDAM, Aug 25 (Reuters) - Dutch IT services firm Ordina said on Tuesday it saw "cautious signs" of market stabilization but refrained from giving an outlook after reporting better-than-expected first-half results.

Chief Executive Ronald Kasteel told reporters there was some stabilisation in Ordina's markets, which are mainly the financial and government sectors.

"It looks like the sun is starting to shine a little," he said.

But as the overall economic climate was not expected to change it was too early to give an outlook, Kasteel added.

Earnings before interest, taxes and amortization (EBITA) from continuing operations, excluding extraordinary items was 17.2 million euros ($24.61 million), down from last year's 27.7 million.

This compared to an average of 15 million euros in a Reuters survey of five analysts, with individual estimates ranging from 14 million euros to 17 million.

Analysts said however the worst may not be over yet. "We expect the second half of 2009 to show the full impact of the price pressure that has come up during the first half year," Petercam analyst Luuk van Beek said, adding that first-half results showed that pressure was even more severe than he had anticipated.

Ordina shares traded down 2.7 percent at 4.64 euros by 0754 GMT after gaining as much as 7 percent at the opening. The Amsterdam midcap index was down 0.4 percent.

The shares have risen about 70 percent since the end of June when it announced a 20.7 million euro share issue to shore up its finances.

Ordina kept its outlook to save 15 million euros in 2009 and 25 million euros in 2010 and said it may "slightly but not materially" exceed the targets, possibly already this year.

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