Tieto Advances Most Since 2009 on New Orders: Helsinki Mover

Feb. 8 (Bloomberg) -- Tieto Oyj, the largest Nordic provider of computer services, climbed the most in more than two years as new orders more than tripled.

Tieto rose as much as 10 percent, the most since July 2009, and traded 9.4 percent higher at 12.60 euros as of 11:29 a.m. in Helsinki. Tieto has risen 15 percent this year, giving it a market value of 910 million euros ($1.2 billion).

“New orders were significantly better than in the prior quarter,” said Mikko Ervasti, an analyst at Evli Bank Oyj in Helsinki. “The tremendous operating margin, positive outlook and raised dividend are also boosting the share.”

Tieto’s orders more than tripled to 601 million euros last quarter from 177 million euros in the July-to-September period. The operating margin rose to 5.3 percent last quarter from 1.4 percent a year earlier. The Helsinki-based company forecast that full-year sales will develop in line with the market and its earnings before interest and taxes will rise this year from last year’s level.

Tieto proposed a dividend payout of 0.75 euros a share, for the highest payment since 2007. Bloomberg had estimated Tieto would maintain the dividend at 0.70 euros a share. The company paid 0.54 euros a share as a regular dividend and 0.66 euros a share in a special cash payout five years ago.

--Editors: Robert Valpuesta, Marthe Fourcade.

To contact the reporter on this story: Kati Pohjanpalo in Helsinki at kpohjanpalo@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net