Troubles in the Nordics?

(By Richard Holway 9.00am 26th Mar 09) Logica shares have fallen by 6% since Monday mainly as a reaction to the warning put out TietoEnator. Tieto warned of lower sales and a 12% fall yoy in Jan/Feb.

Tieto reported "Decline in demand, especially in the telecommunications and banking sectors, has continued during the first months of 2009. Additionally, the weakened currencies, especially the Swedish krona, have continued to have a negative impact on Tieto's net sales in euros." TietoEnator shares slumped 20% on the warning.

Tieto makes over 70% of its revenues from just Sweden and Finland. But Logica has a major exposure to the Nordics too where it makes c28% of it revenues (c£1b) and 33% of its profits. But given Andy Green’s positive comments last week, maybe investors are being a bit too harsh in making this ‘read across’ with Tieto.