|
|||
2008-02-06 11:14:22 CET 2008-02-06 11:16:20 CET REGLAMENTUOJAMA INFORMACIJA Metso Oyj - Financial Statement ReleaseMetso Corporation's Financial Statements Release 2007 part 2/2The financial statements release is unaudited CONSOLIDATED STATEMENTS OF INCOME EUR million 10-12/2007 10-12/2006 1-12/2007 1-12/2006 Net sales 1,896 1,538 6,250 4,955 Cost of goods sold (1,453) (1,179) (4,702) (3,659) Gross profit 443 359 1,548 1,296 Selling, general and administrative expenses (256) (235) (972) (846) Other operating income and expenses, net (8) 0 1 6 Share in profits of associated companies 1 1 3 1 Operating profit 180 125 580 457 % of net sales 9.5% 8.1% 9.3% 9.2% Financial income and expenses, net (8) (8) (33) (36) Profit before taxes 172 117 547 421 Income taxes (49) 5 (163) (11) Profit 123 122 384 410 Profit attributable to minority interests 3 0 3 1 Profit attributable to equity shareholders 120 122 381 409 Profit 123 122 384 410 Earnings per share, EUR 0.85 0.86 2.69 2.89 Adjusted earnings per share, EUR 1) 0.85 0.65 2.69 2.28 1) In 2006, Metso recognized nonrecurring deferred tax assets totaling EUR 87 million, which improved the earnings per share by EUR 0.61. Of the deferred tax asset, EUR 57 million was recognized in the second quarter of 2006 (impact to EPS EUR 0.40) and EUR 30 million in the last quarter of 2006 (impact to EPS EUR 0.21). CONSOLIDATED STATEMENT OF RECOGNIZED INCOME AND EXPENSE EUR million 10-12/2007 10-12/2006 1-12/2007 1-12/2006 Cash flow hedges, net of tax (3) 4 (2) 16 Available-for-sale equity investments, net of tax (3) 0 22 1 Share-based payments, net of tax - - 1 0 Currency translation on subsidiary net investments (16) (18) (29) (59) Net investment hedge gains (losses), net of tax (2) 8 (2) 22 Defined benefit plan actuarial gains (losses), net of tax (1) 3 (1) 3 Other 1 2 2 2 Net income (expense) recognized directly in equity (24) (1) (9) (15) Profit 123 122 384 410 Total recognized income (expense) for the year 99 121 375 395 Total recognized income (expense) attributable to minority interests 3 0 3 1 Total recognized income (expense) attributable to equity shareholders 96 121 372 394 Total recognized income (expense) for the year 99 121 375 395 ASSETS EUR million Dec 31, 2007 Dec 31, 2006 Non-current assets Intangible assets Goodwill 772 768 Other intangible assets 251 274 1,023 1,042 Property, plant and equipment Land and water areas 54 57 Buildings and structures 216 221 Machinery and equipment 315 318 Assets under construction 49 19 634 615 Financial and other assets Investments in associated companies 19 19 Available-for-sale equity investments 45 15 Loan and other interest bearing receivables 5 6 Available-for-sale financial investments 5 5 Deferred tax asset 144 238 Other non-current assets 22 33 240 316 Total non-current assets 1,897 1,973 Current assets Inventories 1,410 1,112 Receivables Trade and other receivables 1,274 1,218 Cost and earnings of projects under construction in excess of advance billings 374 284 Loan and other interest bearing receivables 2 2 Available-for-sale financial assets 0 10 Tax receivables 30 16 1,680 1,530 Cash and cash equivalents 267 353 Total current assets 3,357 2,995 Assets held for sale - - TOTAL ASSETS 5,254 4,968 SHAREHOLDERS' EQUITY AND LIABILITIES EUR million Dec 31, 2007 Dec 31, 2006 Equity Share capital 241 241 Share premium reserve 77 77 Cumulative translation differences (76) (45) Fair value and other reserves 456 432 Retained earnings 910 739 Equity attributable to shareholders 1,608 1,444 Minority interests 7 6 Total equity 1,615 1,450 Liabilities Non-current liabilities Long-term debt 700 605 Post employment benefit obligations 177 191 Deferred tax liability 41 57 Provisions 37 53 Other long-term liabilities 2 2 Total non-current liabilities 957 908 Current liabilities Current portion of long-term debt 22 93 Short-term debt 97 132 Trade and other payables 1,307 1,238 Provisions 222 213 Advances received 637 655 Billings in excess of cost and earnings of projects under construction 331 222 Tax liabilities 66 57 Total current liabilities 2,682 2,610 Liabilities held for sale - - Total liabilities 3,639 3,518 TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 5,254 4,968 NET INTEREST BEARING LIABILITIES Long-term interest bearing debt 700 605 Short-term interest bearing debt 119 225 Cash and cash equivalents (267) (353) Other interest bearing assets (12) (23) Total 540 454 CONDENSED CONSOLIDATED CASH FLOW STATEMENT EUR million 10-12/2007 10-12/2006 1-12/2007 1-12/2006 Cash flows from operating activities: Profit 123 122 384 410 Adjustments to reconcile profit to net cash provided by operating activities Depreciation 38 27 148 105 Interests and dividend income 6 4 32 26 Income taxes 49 (5) 163 11 Other (8) (2) (4) - Change in net working capital (123) (34) (286) (18) Cash flows from operations 85 112 437 534 Interest paid and dividends received (17) (21) (29) (24) Income taxes paid (34) (17) (114) (68) Net cash provided by (used in) operating activities 34 74 294 442 Cash flows from investing activities: Capital expenditures on fixed assets (49) (41) (159) (129) Proceeds from sale of fixed assets 3 3 16 14 Business acquisitions, net of cash acquired (8) (268) (55) (277) Proceeds from sale of businesses, net of cash sold - 13 9 13 (Investments in) proceeds from sale of financial assets 0 41 13 154 Other - (1) - (2) Net cash provided by (used in) investing activities (54) (253) (176) (227) Cash flows from financing activities: Share options exercised - 1 0 1 Redemption of own shares - (11) - (11) Dividends paid - - (212) (198) Net funding 29 49 (5) 35 Other - - 15 (6) Net cash provided by (used in) financing activities 29 39 (202) (179) Net increase (decrease) in cash and cash equivalents 9 (140) (84) 36 Effect from changes in exchange rates (3) - (2) (6) Cash and cash equivalents at beginning of period 261 493 353 323 Cash and cash equivalents at end of period 267 353 267 353 Free cash flow EUR million 10-12/2007 10-12/2006 1-12/2007 1-12/2006 Net cash provided by operating activities 34 74 294 442 Capital expenditures on maintenance investments (37) (23) (112) (92) Proceeds from sale of fixed assets 3 3 16 14 Free cash flow 0 54 198 364 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Cumu- Fair Equity Share lative value attri- pre- trans- and Re- butable Mi- mium lation other tained to nority Total Share re- adjust- re- earn- share- inter- e- EUR million capital serve ments serves ings holders ests quity Balance at Jan 1, 2006 241 76 (9) 424 526 1,258 7 1,265 Cash flow hedges, net of tax - - - 16 - 16 - 16 Available-for-sale equity investments, net of tax - - - 1 - 1 - 1 Share-based payments, net of tax - - - 0 - 0 - 0 Currency translation on subsidiary net investments - - (59) - - (59) - (59) Net investment hedge gains (losses), net of tax - - 22 - - 22 - 22 Defined benefit plan actuarial gains (losses), net of tax - - - - 3 3 - 3 Other - - 1 1 - 2 - 2 Net income (expense) recognized directly in equity - - (36) 18 3 (15) - (15) Profit - - - - 409 409 1 410 Total recognized income (expense) for 2006 - - (36) 18 412 394 1 395 Dividends - - - - (198) (198) - (198) Share options exercised - 1 - - - 1 - 1 Redemption of own shares - - - (11) - (11) - (11) Other - - - 1 (1) - (2) (2) Balance at Dec 31, 2006 241 77 (45) 432 739 1,444 6 1,450 Cash flow hedges, net of tax - - - (2) - (2) - (2) Available-for-sale equity investments, net of tax - - - 22 - 22 - 22 Share-based payments, net of tax - - - 1 - 1 - 1 Currency translation on subsidiary net investments - - (29) - - (29) - (29) Net investment hedge gains (losses), net of tax - - (2) - - (2) - (2) Defined benefit plan actuarial gains (losses), net of tax - - - - (1) (1) - (1) Other - 2 2 - 2 Net income (expense) recognized directly in equity - - (31) 21 1 (9) - (9) Profit - - - - 381 381 3 384 Total recognized income (expense) for 2007 - - (31) 21 382 372 3 375 Dividends - - - - (212) (212) - (212) Share options exercised 0 0 - - - 0 - 0 Redemption of own shares - - - - - - - - Other - - - 3 1 4 (2) 2 Balance at Dec 31, 2007 241 77 (76) 456 910 1,608 7 1,615 ACQUISITIONS Acquisitions in 2007 Metso Minerals acquired North American metal recycling provider, Bulk Equipment Systems and Technologies Inc (B.E.S.T. Inc), on March 30, 2007. The acquisition price was approximately EUR 9 million. Excess purchase price of EUR 3 million was allocated to intangible assets, representing the fair values of the acquired customer base, brands, technology and order backlog. The remaining excess purchase price of EUR 7 million represents goodwill associated to Metso's improved position in the North American metal recycling market. On June 27, 2007, Metso Paper acquired Mecanique et Dépannage Industries s.a.r.l. (MDI), a French company supplying maintenance services to the paper industry. The purchase price was less than EUR 1 million. Metso Paper acquired on July 18, 2007 a UK based service provider Bender Holdings Limited with its subsidiaries. The purchase price was EUR 16 million, net of cash acquired. Excess purchase price of EUR 10 million was allocated to intangible assets, representing the fair values of acquired technology, customer base and existing long-term contracts. The remaining excess purchase price of EUR 6 million is goodwill related to Metso's improved position in the worldwide market for services to pulp and paper industry. Metso Minerals strengthened its metal recycling business by acquiring Mueller Engineering Inc. in the USA on October 31, 2007. Mueller Engineering is a shredder plant service provider specializing in servicing the drive motors and related equipment critical to the functioning of the shredder. The purchase price was EUR 6 million. Excess purchase price of EUR 3 million was allocated to intangible assets representing the fair values of acquired customer base, technology and order backlog and the remaining EUR 4 million represents goodwill arising from the leading market position gained on metal recycling plant services in North America. Had these acquisitions taken place on January 1, 2007, Metso's net sales and net profit would have increased by EUR 26 million and EUR 3 million, respectively. Summary information on acquisitions made in 2007: Fair value EUR million Carrying amount allocations Fair value Intangible assets 0 16 16 Property, plant and equipment 2 - 2 Inventories 2 - 2 Trade and other receivables 8 - 8 Deferred tax liabilities (1) (5) (6) Other liabilities assumed (7) - (7) Non-interest bearing net assets 4 11 15 Cash and cash equivalents acquired 4 - 4 Debt assumed (1) - (1) Purchase price (36) - (36) Goodwill 29 (11) 18 Purchase price settled in cash (36) Cash and cash equivalents acquired 4 Cash outflow on acquisitions (32) Acquisition of Pulping and Power businesses in 2006 Metso acquired the Pulping and Power businesses from Aker Kvaerner on December 29, 2006. The final asset values of the businesses were agreed upon in July 2007 and the revised purchase price amounted to EUR 336 million including EUR 6 million in expenses related to the acquisition and EUR 53 million of net cash. The resulting purchase price adjustment of EUR 23 million was settled in July. The total excess purchase price amounted to EUR 379 million, whereof EUR 154 million was allocated to intangible assets, representing the fair values of acquired customer base, technology and order backlog. The related deferred tax liability was EUR 41 million. The remaining excess purchase price of EUR 266 million represents goodwill, which reflects the value of assembled workforce, significant synergy benefits and widened business portfolio offering Metso potential to expand its operations into new markets and customer segments. Details of the acquired net assets and goodwill are as follows: Fair value EUR million Carrying amount allocations Fair value Intangible assets 5 154 159 Property, plant and equipment 25 - 25 Inventories 52 - 52 Trade and other receivables 186 - 186 Other assets 29 - 29 Minority interests - - - Advances received (214) - (214) Deferred tax liabilities (4) (41) (45) Other liabilities assumed (175) - (175) Non-interest bearing net assets (96) 113 17 Cash and cash equivalents 248 - 248 Debt assumed (195) - (195) Purchase price (330) - (330) Costs related to acquisition (6) - (6) Goodwill 379 (113) 266 Purchase price settled in cash (307) Settlement of acquired debt (195) Costs related to acquisition (6) Cash and cash equivalents acquired 248 Cash outflow on acquisition for 2006 (260) Purchase price adjustment paid in July 2007 (23) Total cash outflow on acquisition (283) Other acquisitions in 2006 In August 2006, Metso acquired a Chinese paper machine manufacturer Shanghai-Chenming Paper Machinery Co. Ltd. at a cash consideration of EUR 12 million and debt assumed of EUR 19 million. The company was consolidated into Metso Paper from September 2006 onwards. Additionally, Metso acquired minor service related businesses in Sweden for a purchase consideration of EUR 4 million and the remaining minority interest of 35% in Metso-SHI Co. Ltd. in Japan at a price of EUR 2 million. ASSETS PLEDGED AND CONTINGENT LIABILITIES EUR million Dec 31, 2007 Dec 31, 2006 Mortgages on corporate debt 9 14 Other pledges and contingencies Mortgages 2 2 Pledged assets 0 0 Guarantees on behalf of associated company obligations - - Other guarantees 11 6 Repurchase and other commitments 8 10 Lease commitments 142 166 NOTIONAL AMOUNTS OF DERIVATIVE FINANCIAL INSTRUMENTS EUR million Dec 31, 2007 Dec 31, 2006 Forward exchange rate contracts 1,387 1,357 Interest rate and currency swaps 0 1 Currency swaps - 1 Interest rate swaps 143 143 Option agreements Bought - 7 Sold - 6 The notional amount of electricity forwards was 356 GWh as of Dec 31, 2007 and 475 GWh as of Dec 31, 2006. The notional amount of nickel forwards to hedge stainless steel prices was 396 tons as of Dec 31, 2007. In the comparison period Metso had not entered into nickel forwards. The notional amounts indicate the volumes in the use of derivatives, but do not indicate the exposure to risk. KEY RATIOS 1-12/2007 1-12/2006 Earnings per share, EUR 2.69 2.89 Adjusted earnings per share, EUR 1) 2.69 2.28 Equity/share at end of period, EUR 11.36 10.21 Return on equity (ROE), % (annualized) 25.4 30.9 Return on capital employed (ROCE), % (annualized) 26.1 22.5 Equity to assets ratio at end of period, % 37.7 35.4 Gearing at end of period, % 33.4 31.3 Free cash flow 198 364 Free cash flow/share 1.40 2.57 Gross capital expenditure (excl. business acquisitions) 159 131 Business acquisitions, net of cash acquired 55 277 Depreciation and amortization 148 105 Number of outstanding shares at end of period (thousands) 141,487 141,359 Average number of shares (thousands) 141,460 141,581 Average number of diluted shares (thousands) 141,460 141, 600 1) In 2006, Metso recognized nonrecurring deferred tax assets totaling EUR 87 million, which improved the earnings per share by EUR 0.61. Of the deferred tax asset, EUR 57 million was recognized in the second quarter of 2006 (impact to EPS EUR 0.40) and EUR 30 million in the last quarter of 2006 (impact to EPS EUR 0.21). EXCHANGE RATES USED 1-12/2007 1-12/2006 Dec 31, 2007 Dec 31, 2006 USD (US dollar) 1.3797 1.2630 1.4721 1.3170 SEK (Swedish krona) 9.2647 9.2533 9.4415 9.0404 GBP (Pound sterling) 0.6873 0.6819 0.7334 0.6715 CAD (Canadian dollar) 1.4663 1.4267 1.4449 1.5281 BRL (Brazilian real) 2.6623 2.7375 2.5949 2.8105 BUSINESS AREA INFORMATION Metso Ventures Business Area was dismantled as of January 1, 2007. Two of Metso's three foundries were transferred to Metso Paper and one to Metso Minerals. Metso Panelboard became part of Metso Paper. Valmet Automotive is reported as part of Corporate Office and others group. Comparative segment information for 2006 is presented according to the new organization structure. Aker Kvaerner's Pulping and Power businesses were acquired as of December 29, 2006 and the acquired balance sheet was consolidated to Metso as of December 31, 2006. The acquired businesses had no effect to Metso's income statement for 2006 and are therefore not included in the comparative segment information except for capital employed, order backlog and personnel as at December 31, 2006. NET SALES EUR million 10-12/2007 10-12/2006 1-12/2007 1-12/2006 Change, % Metso Paper 909 717 2,925 2,092 40 Metso Minerals 770 630 2,607 2,199 19 Metso Automation 213 193 698 613 14 Valmet Automotive 21 28 85 109 (22) Corporate office and other - 3 - 10 (100) Corporate office and others total 21 31 85 119 (29) Intra Metso net sales (17) (33) (65) (68) Metso total 1,896 1,538 6,250 4,955 26 OTHER OPERATING INCOME (+) AND EXPENSES (-), NET EUR million 10-12/2007 10-12/2006 1-12/2007 1-12/2006 Metso Paper (14.3) (10.4) (11.5) (11.0) Metso Minerals 4.3 10.7 7.7 16.1 Metso Automation 2.1 0.4 2.4 0.3 Valmet Automotive 0.0 0.0 0.0 0.0 Corporate office and other 0.0 (1.1) 2.5 0.4 Corporate office and others total 0.0 (1.1) 2.5 0.4 Metso total (7.9) (0.4) 1.1 5.8 SHARE IN PROFITS OF ASSOCIATED COMPANIES EUR million 10-12/2007 10-12/2006 1-12/2007 1-12/2006 Metso Paper 0.6 0.7 1.1 1.7 Metso Minerals 0.3 0.0 0.3 0.1 Metso Automation 0.1 0.2 1.4 0.8 Valmet Automotive - - - - Corporate office and other - (0.4) - (1.7) Corporate office and others total - (0.4) - (1.7) Metso total 1.0 0.5 2.8 0.9 OPERATING PROFIT (LOSS) EUR million 10-12/2007 10-12/2006 1-12/2007 1-12/2006 Change, % Metso Paper 39.6 13.2 136.9 89.8 52 Metso Minerals 113.9 90.0 362.6 297.7 22 Metso Automation 34.2 31.8 98.8 86.7 14 Valmet Automotive 0.9 1.0 8.0 11.7 (32) Corporate office and other (8.9) (11.0) (26.5) (28.7) (8) Corporate office and others total (8.0) (10.0) (18.5) (17.0) 9 Metso total 179.7 125.0 579.8 457.2 27 OPERATING PROFIT (LOSS), % OF NET SALES % 10-12/2007 10-12/2006 1-12/2007 1-12/2006 Metso Paper 4.4 1.8 4.7 4.3 Metso Minerals 14.8 14.3 13.9 13.5 Metso Automation 16.1 16.5 14.2 14.1 Valmet Automotive 4.3 3.6 9.4 10.7 Corporate office and other n/a n/a n/a n/a Corporate office and others total n/a n/a n/a n/a Metso total 9.5 8.1 9.3 9.2 EBITA EUR million 10-12/2007 10-12/2006 1-12/2007 1-12/2006 Change, % Metso Paper 51.5 22.1 184.5 105.6 75 Metso Minerals 115.2 91.1 367.1 302.1 22 Metso Automation 34.7 32.2 100.4 88.3 14 Valmet Automotive 1.0 1.0 8.1 11.7 (31) Corporate office and other (8.5) (10.3) (24.7) (26.6) (7) Corporate office and others total (7.5) (9.3) (16.6) (14.9) 11 Metso total 193.9 136.1 635.4 481.1 32 EBITA, % OF NET SALES % 10-12/2007 10-12/2006 1-12/2007 1-12/2006 Metso Paper 5.7 3.1 6.3 5.0 Metso Minerals 15.0 14.5 14.1 13.7 Metso Automation 16.3 16.7 14.4 14.4 Valmet Automotive 4.8 3.6 9.5 10.7 Corporate office and other n/a n/a n/a n/a Corporate office and others total n/a n/a n/a n/a Metso total 10.2 8.8 10.2 9.7 ORDERS RECEIVED EUR million 10-12/2007 10-12/2006 1-12/2007 1-12/2006 Change, % Metso Paper 838 677 3,109 2,276 37 Metso Minerals 761 705 3,075 2,655 16 Metso Automation 165 162 763 717 6 Valmet Automotive 21 28 85 109 (22) Corporate office and other - 4 - 15 (100) Corporate office and others total 21 32 85 124 (31) Intra Metso orders received (14) (19) (67) (67) Metso total 1,771 1,557 6,965 5,705 22 QUARTERLY INFORMATION NET SALES EUR million 10-12/2006 1-3/2007 4-6/2007 7-9/2007 10-12/2007 Metso Paper 717 666 708 642 909 Metso Minerals 630 540 648 649 770 Metso Automation 193 146 174 165 213 Valmet Automotive 28 28 19 17 21 Corporate office and other 3 - - - - Corporate office and others total 31 28 19 17 21 Intra Metso net sales (33) (14) (13) (21) (17) Metso total 1,538 1,366 1,536 1,452 1,896 OTHER OPERATING INCOME (+) AND EXPENSES (-), NET EUR million 10-12/2006 1-3/2007 4-6/2007 7-9/2007 10-12/2007 Metso Paper (10.4) 1.9 (3.3) 4.2 (14.3) Metso Minerals 10.7 1.2 0.2 2.0 4.3 Metso Automation 0.4 0.5 (0.4) 0.2 2.1 Valmet Automotive 0.0 0.0 0.0 0.0 0.0 Corporate office and other (1.1) 2.2 0.4 (0.1) 0.0 Corporate office and others total (1.1) 2.2 0.4 (0.1) 0.0 Metso total (0.4) 5.8 (3.1) 6.3 (7.9) OPERATING PROFIT (LOSS) EUR million 10-12/2006 1-3/2007 4-6/2007 7-9/2007 10-12/2007 Metso Paper 13.2 25.4 35.7 36.2 39.6 Metso Minerals 90.0 67.8 95.7 85.2 113.9 Metso Automation 31.8 15.5 23.3 25.8 34.2 Valmet Automotive 1.0 4.4 1.0 1.7 0.9 Corporate office and other (11.0) (4.7) (7.4) (5.5) (8.9) Corporate office and others total (10.0) (0.3) (6.4) (3.8) (8.0) Metso total 125.0 108.4 148.3 143.4 179.7 EBITA EUR million 10-12/2006 1-3/2007 4-6/2007 7-9/2007 10-12/2007 Metso Paper 22.1 37.1 47.7 48.2 51.5 Metso Minerals 91.1 68.7 96.9 86.3 115.2 Metso Automation 32.2 15.9 23.6 26.2 34.7 Valmet Automotive 1.0 4.4 1.0 1.7 1.0 Corporate office and other (10.3) (4.2) (6.9) (5.1) (8.5) Corporate office and others total (9.3) 0.2 (5.9) (3.4) (7.5) Metso total 136.1 121.9 162.3 157.3 193.9 CAPITAL EMPLOYED Dec 31, Mar 31, June 30, Sep 30, Dec 31, EUR million 2006 2007 2007 2007 2007 Metso Paper 616 558 637 593 674 Metso Minerals 949 965 1,030 1,045 1,106 Metso Automation 149 155 189 201 214 Valmet Automotive 23 23 23 29 21 Corporate office and other 543 564 419 444 419 Corporate office and others total 566 587 442 473 440 Metso total 2,280 2,265 2,298 2,312 2,434 ORDERS RECEIVED EUR million 10-12/2006 1-3/2007 4-6/2007 7-9/2007 10-12/2007 Metso Paper 677 653 1,103 515 838 Metso Minerals 705 771 798 745 761 Metso Automation 162 228 185 185 165 Valmet Automotive 28 28 19 17 21 Corporate office and other 4 - - - - Corporate office and others total 32 28 19 17 21 Intra Metso orders received (19) (16) (15) (22) (14) Metso total 1,557 1,664 2,090 1,440 1,771 ORDER BACKLOG Dec 31, Mar 31, June 30, Sep 30, Dec 31, EUR million 2006 2007 2007 2007 2007 Metso Paper 2,225 2,190 2,584 2,455 2,363 Metso Minerals 1,277 1,497 1,673 1,728 1,690 Metso Automation 276 356 365 382 332 Valmet Automotive - - - - - Corporate office and other - - - - - Corporate office and others total - - - - - Intra Metso order backlog (41) (44) (48) (46) (44) Metso total 3,737 3,999 4,574 4,519 4,341 Dec 31, Mar 31, June 30, Sep 30, Dec 31, PERSONNEL 2006 2007 2007 2007 2007 Metso Paper 11,558 11,469 11,954 11,774 11,694 Metso Minerals 9,433 9,545 9,967 10,194 10,446 Metso Automation 3,352 3,379 3,564 3,523 3,564 Valmet Automotive 1,013 899 782 777 789 Corporate office and other 322 324 342 335 344 Corporate office and others total 1,335 1,223 1,124 1,112 1,133 Metso total 25,678 25,616 26,609 26,603 26,837 Notes to the Financial Statements Release This Financial Statements Release has been prepared in accordance with IAS 34 'Interim Financial Reporting'. The same accounting policies have been applied as in the annual financial statements. Tax losses carried forward and related deferred tax assets as at December 31 stated by the most significant countries are as follows: Tax losses Deferred tax carried Deferred tax asset in EUR million forward asset Not recorded balance sheet 2006 Finland 164 43 0 43 USA 77 32 0 32 Germany 51 19 0 19 Other 92 27 10 17 Total 384 121 10 111 Tax losses Deferred tax carried Deferred tax asset in EUR million forward asset Not recorded balance sheet 2007 Finland 64 17 0 17 USA *) 43 4 0 4 Germany 33 9 0 9 Other 61 16 5 11 Total 201 46 5 41 *) Main part of the remaining losses concern state taxes. Changes in accounting policies and new accounting standards Prior to 2007 Metso had applied the corridor method in recognizing the actuarial gains and losses related to its defined post-employment schemes. Under the corridor method, the accumulated actuarial gains and losses are expensed over the expected average remaining working lives of employees in the plan. At the beginning of 2007, Metso adopted the amendment to IAS19 'Employee benefits', which permits the recognition of all actuarial gains and losses in the period in which they occur outside the income statement directly in shareholders' equity. This policy was adopted to improve the transparency of Metso's financial statements. The comparative figures are also presented correspondingly. The change in accounting policy decreased the shareholders' equity, net of tax, by EUR 24 million in 2006 (EUR 27 million in 2005) and increased the pension liability by EUR 34 million at December 31, 2006 (EUR 40 million at December 31, 2005). IFRS 8 In November 2006, IASB issued IFRS 8 'Operating Segments', which requires the company to adopt the 'management approach' to reporting on the financial performance of its operating segments. Thus, the information to be reported would be what management uses internally for evaluating segment performance. Metso is currently evaluating the effects to its financial statements, however, it expects the standard not to impact its current segment structure. IFRS 8 is effective for annual financial statements for periods beginning on or after January 1, 2009. Earlier adoption is permitted. Metso will apply the standard for the financial year beginning on January 1, 2009. IFRIC 14 IASB has published IFRIC 14, 'IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction'. The interpretation is applied to post-employment defined benefit plans and other long-term defined benefit plans under IAS 19, if the plan includes minimum funding requirements. The interpretation also clarifies the criteria for recognition of an asset on future refunds or reductions in future contributions. Metso does not expect the new requirements to have a material impact to its financial statements. IFRIC 14 is effective for annual financial statements for periods beginning on or after January 1, 2008. The interpretation is still subject to endorsement by the European Union. Pending on endorsement by the European Union, Metso should apply the standard for the financial year beginning on January 1, 2008. IAS 1 (Revised) IASB has published IAS 1 (Revised) 'Presentation of Financial Statements'. The revised standard is aimed at improving users' ability to analyse and compare the information given in financial statements by separating changes in equity of an entity arising from transactions with owners from other changes in equity. IAS 1 (Revised) is effective for annual financial statements for periods beginning on or after January 1, 2009. The standard is still subject to endorsement by the European Union. Provided the standard is endorsed by the Europen Union before the end of 2008, Metso will apply the standard for the financial year beginning on January 1, 2009. IFRS 3 (Revised) IASB has published IFRS 3 (Revised), 'Business combinations'. The revised standard continues to apply the acquisition method to business combinations, with some significant changes, such as expensing of transaction costs. In addition, all payments to purchase a business are to be recorded at fair value at the acquisition date, with some contingent payments subsequently remeasured at fair value through income. Goodwill may be calculated based on the parent's share of net assets or it may include goodwill related to the minority interest. Metso is currently evaluating the effects to its financial statements. IFRS 3 (Revised) is effective for annual financial statements for periods beginning on or after July 1, 2009. The standard is still subject to endorsement by the European Union. Provided the revision receives the endorsement by the European Union, Metso will apply the standard for the financial year beginning on January 1, 2010. IAS 23 (Amended) IASB has published Amendment to IAS 23 'Borrowing Costs', which requires an entity to capitalize borrowing costs directly attributable to the acquisition, construction or production of qualifying asset as part of the cost of that asset. A qualifying asset can be intended for its own use (self-constructed asset) or for sale. The option of immediately expensing those borrowing costs will be removed. The amendment does not change the accounting policy applied by the group to self-constructed assets and therefore, should not have material impact on the group's financial statements, however the implementation of the amendment to qualifying assets for sale is under review and its effects are being evaluated by Metso. The amendment is effective for annual periods beginning on or after January 1, 2009. The standard is still subject to endorsement by the European Union. Provided the amendment receives the endorsement by the European Union, Metso will apply the standard for the financial year beginning on January 1, 2009. IAS 27 (Revised) IASB has published IAS 27 (Revised), 'Consolidated and separate financial statements'. The revised standard requires the effects of all transactions with non-controlling interests to be recorded in equity if there is no change in control. They will no longer result in goodwill or gains and losses. The standard also specifies the accounting when control is lost. Any remaining interest in the entity is remeasured to fair value and a gain or loss is expensed. Metso is currently evaluating the effects to its financial statements. IAS 27 (Revised) is effective for annual financial statements for periods beginning on or after July 1, 2009. The standard is still subject to endorsement by the European Union. Provided the revision receives the endorsement by the European Union, Metso will apply the standard for the financial year beginning on January 1, 2010. Shares traded on the Helsinki and New York Stock Exchanges The number of Metso Corporation shares traded on the OMX Nordic Exchange Helsinki during 2007 was 350 million shares, equivalent to a turnover of EUR 14,508 million. The share price on December 31, 2007 was EUR 37.33, and the average trading price for the year was EUR 41.43. The highest quotation during the review period was EUR 49.95 and the lowest EUR 34.06. The trading of Metso ADSs (American Depositary Shares) on the New York Stock Exchange was terminated on September 14, by which time approximately 6 million Metso ADSs, equivalent to a turnover of USD 344 million, had been traded since the beginning of 2007. The highest price of Metso's ADS in the United States in 2007 was USD 70.62, and the lowest USD 46.18. At the end of the year, the price of an ADS was USD 53.70. Each ADS represents one share. Disclosures of changes in holdings Only one disclosure of a change in holdings was received during the year. J.P. Morgan Chase & Co. announced that the funds they managed held 6,996,732 Metso shares/ADSs on February 12, 2007 corresponding to 4.94 percent of the paid up share capital of Metso. Metso Corporation Olli Vaartimo Kati Renvall Executive Vice President and CFO Vice President, Corporate Communications Distribution: OMX Nordic Exchange Helsinki The media www.metso.com For further information, please contact: Jorma Eloranta, President and CEO, Metso Corporation, tel. +358 (0)204 84 3000 Olli Vaartimo, Executive Vice President and CFO, Metso Corporation, tel. +358 (0)204 84 3010 Johanna Sintonen, Vice President, Investor Relations, Metso Corporation, tel. +358 (0)204 84 3253 It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for customer industry profitability and investment willingness, expectations for company growth, development and profitability and the realization of synergy benefits and cost savings, and statements preceded by "expects", "estimates","forecasts" or similar expressions, are forward-looking statements. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by the company. Such factors include, but are not limited to: (1) general economic conditions, including fluctuations in exchange rates and interest levels which influence the operating environment and profitability of customers and thereby the orders received by the company and their margins (2) the competitive situation, especially significant technological solutions developed by competitors (3) the company's own operating conditions, such as the success of production, product development and project management and their continuous development and improvement (4) the success of pending and future acquisitions and restructuring. Metso is a global engineering and technology corporation with 2006 net sales of approximately EUR 5 billion. Its more than 26,000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. www.metso.com |
|||
|