Metso Oyj - Interim report (Q1 and Q3)

Metso's Interim Review January 1 - September 30, 2017

Metso's Interim Review January 1 - September 30, 2017

Metso Corporation, Stock exchange release, October 20, 2017 at 09:00 a.m. EEST

Metso will arrange a results audio cast today at 1:00 p.m. EEST. The audio cast
is viewable at www.metso.com/latestreports. The event will feature a
simultaneous conference call allowing participants to ask questions. Details of
the call are available at the end of this release.

This is a summary of Metso's Interim Review January 1 -September 30, 2017. The
complete report is attached to this release and is also available at
www.metso.com/latestreports.

Figures  in brackets refer to the corresponding period in 2016, unless otherwise
stated.

Third-quarter 2017 in brief (compared to the third quarter of 2016)
  * Market activity remained healthy
  * Orders received increased 30 percent and totaled EUR 817 million (EUR 628
    million). Services orders increased 15 percent to EUR 486 million (EUR 422
    million)
  * Sales increased 5 percent to EUR 673 million (EUR 638 million). Services
    sales increased 7 percent and totaled EUR 440 million (EUR 413 million)
  * Adjusted EBITA was EUR 43.0 million, or 6.4 percent of sales (EUR 77.2
    million, or 12.1%), including EUR 33.3 million charges related to mining
    projects in the backlog
  * Adjusted EBITA excluding EUR 33.3 million charges was EUR 76.3 million or
    11.3 percent of sales
  * Operating profit (EBIT) totaled EUR 39.4 million (EUR 62.9 million)
  * Earnings per share totaled EUR 0.13 (EUR 0.24)
  * Free cash flow was EUR 58 million (EUR 106 million)


January-September 2017 in brief (compared to corresponding period of 2016)

  * Orders received increased 12 percent and totaled EUR 2,298 million (EUR
    2,052 million). Services orders increased 13 percent to EUR 1,462 million
    (EUR 1,299 million)
  * Sales increased 5 percent to EUR 1,996 million (EUR 1,910 million). Services
    sales increased 4 percent and totaled EUR 1,308 million (EUR 1,261 million)
  * Adjusted EBITA was EUR 179.4 million, or 9.0 percent of sales (EUR 210.2
    million, or 11.0%)
  * Adjusted EBITA excluding EUR 33.3 million charges booked in the third
    quarter was EUR 212.7 million or 10.7 percent of sales
  * Operating profit (EBIT) totaled EUR 158.6 million (EUR 182.6 million)
  * Earnings per share totaled EUR 0.60 (EUR 0.70)
  * Free cash flow was EUR 101 million (EUR 242 million)


Market outlook
Metso has changed the way it comments on its market outlook. Going forward, our
commentary will focus on the expected sequential market development with a
rolling six months' view on the segment level (Minerals and Flow Control).

Our market conditions are expected to develop as follows:

  * Remain stable for Minerals equipment and services
  * Remain stable for Flow Control equipment and services
President and CEO Nico Delvaux
Our order intake was good in the third quarter, growing 30 percent year-on-year.
Even when excluding the large mining equipment order booked during the quarter,
we saw a healthy order increase across our businesses, which is reflective of
the current market situation. However, our performance during the quarter was
clearly not satisfactory. Especially disappointing was that we needed to book
33 million euros for cost overruns and write-downs related to mining projects in
the backlog. Going forward, we will need to focus on our delivery capability and
improve our operational excellence.

Since I took over as President and CEO in the beginning of August, we have been
making some changes to our organization and to the way we operate. Our aim is to
improve the accountability of our businesses and to speed up decision-making,
the implementation of our growth plans, and our response to market changes. I am
convinced that these changes will help us to get the most out of the improved
market conditions and deliver profitable growth going forward.

Key figures

                                                     Q1-Q3/ Q1-Q3/
EUR million                 Q3/2017 Q3/2016 Change %   2017   2016 Change % 2016
--------------------------------------------------------------------------------
Orders received                 817     628       30  2,298  2,052  12     2,724

Orders received by the                                1,462         13
services business               486     422       15         1,299         1,741

  % of orders received           59      67              64     63            64

Order backlog at the end of                           1,491         14
the period                                                   1,305         1,320

Sales                           673     638        5  1,996  1,910   5     2,586

Sales   of   the   services                           1,308          4
business                        440     413        7         1,261         1,703

  % of sales                     65      65              66     66            66

Earnings before interest,
tax and amortization
(EBITA), adjusted              43.0    77.2      -44  179.4  210.2 -15     274.0

  % of sales                    6.4    12.1             9.0   11.0          10.6

Operating profit (EBIT)        39.4    62.9      -37  158.6  182.6 -13     227.1

  % of sales                    5.9     9.9             7.9    9.6           8.8

Earnings per share, EUR        0.13    0.24      -46   0.60   0.70 -14      0.87

Free cash flow                   58     106      -45    101    242 -58       339

Return on capital employed
(ROCE) before tax,
annualized, %                                           9.8   11.2          10.4

Equity-to-assets  ratio  at
the end of the period, %                               45.3   48.1          48.0

Net  gearing at  the end of                                    5.1
the period, %                                           3.8                 -1.8

Personnel at the end of the
period                                               11,698 11,647        11,542
--------------------------------------------------------------------------------



Conference call details
Conference call participants are requested to dial in five minutes before the
event begins on:
United States: +1 719 457 1036
other countries: +44 330 336 9105

The confirmation code for joining the conference call is 2236457.

A recording of the event is available at www.metso.com/latestreports at the
earliest after the event has finished and a transcript of the event will be
available on Monday, October 23 at the latest.

For further information, please contact:
Nico Delvaux, President and CEO, Metso Corporation, tel. +358 20 484 3000
Eeva Sipilä, CFO, Metso Corporation, tel. +358 20 484 3010
Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel.
+358 20 484 3253

Metso Corporation
Eeva Sipilä
CFO

Juha Rouhiainen
VP, Investor Relations

Distribution:
NASDAQ OMX Helsinki Ltd
Media
www.metso.com

Metso is a world leading industrial company serving the mining, aggregates,
recycling, oil, gas, pulp, paper and process industries. We help our customers
improve their operational efficiency, reduce risks and increase profitability by
using our unique knowledge, experienced people and innovative solutions to build
new, sustainable ways of growing together.

Our products range from mining and aggregates processing equipment and systems
to industrial valves and controls. Our customers are supported by a broad scope
of services and a global network of over 80 service centers and about 6,000
services professionals. Metso has an uncompromising attitude towards safety.

Metso is listed on the NASDAQ OMX Helsinki, Finland, and had sales of about EUR
2.6 billion in 2016. Metso employs over 11,000 people in more than 50 countries.
Expect results.

metso.com


[]

Bifogade filer:

Metso Q3 2017 interim review.pdf