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UPDATE 1-YIT Q3 gets Russia boost, outlook steady

Published 10/28/2009, 02:32 AM
Updated 10/28/2009, 02:35 AM
YIT
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* Q3 EBIT 45.6 mln eur vs 43 mln avg f'cast in Reuters poll

* Q3 sales 815 mln euros vs 830 mln avg in poll

* Still sees 2009 pretax clearly positive, sales down y/y

* Says Q4 op profit to improve vs Q3

(Adds detail, quotes)

HELSINKI, Oct 28 (Reuters) - Finnish builder YIT reported a smaller-than-expected drop in third-quarter earnings on Wednesday, helped by strength in its Russian operations, and the firm repeated its outlook for the year.

YIT said 2009 revenues would fall clearly versus a year ago, but it would make a clear pretax profit. The firm added its fourth-quarter operating profit was expected to rise versus the July-September quarter.

YIT's third-quarter operating profit fell 28 percent year-on-year to 45.6 million euros ($67.9 million), topping the expectation of 43 million in a Reuters poll of analysts.

Sales fell 16 percent to 815 million euros, lagging the consensus estimate of 830 million.

YIT said its International Construction Services unit notched a profit of 3.7 million euros in the quarter, nearly double analysts' expectations and marking its return to the black for the first time since the second quarter of last year.

"Our residential sales in Russia have strengthened as the year has progressed," YIT said in a statement. "The high need for housing has continued in Russia, but the market supply has diminished as the residential sales have proceeded and there has been a lack of start-ups." ($1=.6718 Euro) (Reporting by Brett Young; editing by Karen Foster)

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