Jan 12 (Reuters) - Finnish construction and engineering group YIT said on Friday it had cut its earnings guidance for the 2023 financial year, noting a decline in fair values on its investments.

The company said in a statement that it now expects its full year adjusted operating profit for continuing operations to be in the range of 36 million to 42 million euros ($39.4 million-$46.0 million).

YIT had previously said it expected its adjusted profit in 2023 to be at least 50 million euros.

It recognised declines in fair values on equity investments and investment properties owned by associated companies and joint ventures of about 13 million euros, the company said.

Helsinki-listed YIT added that its housing business continued to be affected by "weak market conditions" in Finland during the fourth quarter.

YIT's shares initially fell on the news but later recovered to trade up 1.2% at 1143 GMT. The company's share price is down 25% in the last 12 months.

($1 = 0.9132 euros) (Reporting by Greta Rosen Fondahn; editing by Terje Solsvik)