Business

Market fall despite good reports

Despite many companies reporting increased profits for the final quarter of 2010 compared to 2009 the market’s reaction has been that of disappointment, and many shares fell when the Stockholm Stock Exchange opened on Wednesday.

Heavyweights such as engineering company Sandvik, home appliance manufacturer Electrolux and truck manufacturer Scania all presented their final quarterly reports for 2010 on Wednesday. But despite record profits and good sales, sometimes exceeding analysts’ expectations, the shares fell.

Scania’s CEO Leif Östling said that the strengthening of the Swedish krona is part of the explanation for why profits might not have been as good as expected. If the krona continues to grow stronger this will also effect the reports for the first quarter of 2011 he told Swedish Radio News.

Another example is the Swedish bearing company SKF which presented a profit a few millions lower than expected which caused their share to drop 7 percent on Wednesday.  

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