2007-04-27 11:00:00 CEST

2007-04-27 11:00:00 CEST


REGULATED INFORMATION

English Finnish
Metso Oyj - Quarterly report

Metso's Interim Review, January 1 - March 31, 2007


Profitable growth continued

HIGHLIGHTS OF THE FIRST QUARTER
- New orders worth EUR 1,664 million were received in January-
March, i.e. 16 percent more than in the corresponding period last
year (EUR 1,437 million in Q1/06).
- The order backlog grew by 7 percent from the end of 2006 and was
EUR 3,999 million at the end of March (EUR 3,737 million on Dec.
31, 2006).
- Net sales increased by 27 percent and totaled EUR 1,366 million
(EUR 1,078 million in Q1/06).
- Earnings before interest, tax and amortization (EBITA) were EUR
121.9 million, i.e. 8.9 percent of net sales (EUR 99.9 million and
9.3% in Q1/06).
- Operating profit (EBIT) was EUR 108.4 million, i.e. 7.9 percent
of net sales (EUR 95.4 million and 8.8% in Q1/06).
- Earnings per share were EUR 0.50 (EUR 0.47 in Q1/06).
- Free cash flow was EUR 97 million (EUR 152 million in Q1/06).
- Return on capital employed (ROCE) was 20.7 percent (20.2% in
Q1/06).

“Metso's January - March order intake was strong, and our order
backlog has further strengthened from the record-high year-end
figures. This, together with the continuing favorable market
outlook, gives us confidence about the rest of the year and
beyond,” says Jorma Eloranta, President and CEO, Metso
Corporation.

Eloranta notes that Metso's financial performance was solid
despite seasonal factors that are typical for the first quarter.
“Our net sales grew significantly over the same period in 2006.
Much of the growth is due to our expanded business scope, i.e. the
acquisition of the Pulping and Power businesses, but even
organically we delivered some 10 percent growth. Also our
operating profit improved on the first quarter of 2006.”

Eloranta says that Metso's outlook for 2007 continues to be
favorable. "The financial performance for the rest of the year is
expected to be stronger than in the first quarter of 2007.
Furthermore, we repeat our estimate that our net sales will grow
by more than 20 percent on 2006 and that the operating profit will
clearly improve."

Metso Corporation's key figures

EUR million                      Q1/07    Q1/06  Change %    2006
Net sales                        1,366    1,078        27   4,955
Earnings before interest, tax                                    
and amortization (EBITA)         121.9     99.9        22   481.1
   % of net sales                  8.9      9.3               9.7
Operating profit                 108.4     95.4        14   457.2
   % of net sales                  7.9      8.8               9.2
Earnings per share, basic, EUR    0.50     0.47         6    2.89
Orders received                  1,664    1,437        16   5,705
Order backlog at end of period   3,999    2,692        49   3,737
Free cash flow                      97      152      (36)     327
Return on capital employed                                       
(ROCE), annualized, %             20.7     20.2              22.2
Equity to assets ratio at end     37.5     38.9              36.1
of period, %
Gearing at end of period, %       22.9     10.5              30.8

Operating environment and demand for products

The market situation for Metso continued to be favorable during
the first quarter.

The demand for new paper and board machines remained good in
China, but there were only a few active projects in other market
areas. New fiber lines were under planning in South America and
Southeast Asia, but the project implementation schedules have been
partly open. The increase in the demand for new alternative energy
sources kept the demand for new power plants at a good level. The
demand for new tissue machines was satisfactory. The demand for
aftermarket services in the pulp and paper industry was
satisfactory during January-March.

The demand for mining and metal recycling equipment remained
excellent. The demand for construction industry equipment
continued to be excellent in Continental and Eastern Europe, and
was good in other markets. Thanks to the high capacity utilization
rates in customer industries, the demand for aftermarket services
remained at an excellent level.

The demand for automation systems for the pulp and paper industry
and power generation was good. The demand for flow control systems
continued to be good in the pulp and paper industry and excellent
in the power, oil and gas industry.


Orders received and order backlog

In January-March, the value of orders received by Metso grew by 16
percent on the comparison period and totaled EUR 1,664 million.
Growth came from all business areas. Most of the increase in Metso
Paper's orders was attributable to the acquisition of the Pulping
and Power businesses at the end of 2006. Metso's order backlog
increased by 7 percent on the end of 2006 and stood at EUR 3,999
million at the end of March.

Metso Paper's largest orders in the first quarter included a paper
machine to Oji Paper in Japan and a board machine to Shandong
International Paper & Sun Coated Paperboard in China. Metso
Minerals' largest orders included a grinding system for Boliden's
Aitik mine in Sweden and grinding equipment to Osisko Exploration
in Canada. Metso Automation received the biggest single valve
order in its history from the Chiyoda-Technip Joint Venture (CTJV)
to Qatar.

Orders received by business area

                                 Q1/07                Q1/06
                                        % of                 % of
                              EUR     orders       EUR     orders
                          million   received   million   received
Metso Paper                   653         39       544         38
Metso Minerals                771         46       686         47
Metso Automation              228         13       191         13
Valmet Automotive              28          2        31          2
Intra-Metso orders                                               
received and other           (16)                 (15)
Total                       1,664        100     1,437        100

Orders received by market area

                                 Q1/07                 Q1/06
                                        % of                 % of
                              EUR     orders        EUR    orders
                          million   received    million  received
Europe                        722         43        608        42
North America                 297         18        308        21
South and Central             118          7        182        13
America
Asia-Pacific                  406         25        241        17
Rest of the world             121          7         98         7
Total                       1,664        100      1,437       100


Net sales

Metso's net sales for the first quarter grew by 27 percent on the
comparison period and totaled EUR 1,366 million. Excluding the
Pulping and Power businesses acquired at the end of 2006, the net
sales growth was about 10 percent. All business areas increased
their net sales. Excluding the effect of exchange rate
translation, the increase would have been 4 percentage points
higher. Aftermarket operations accounted for 33 percent (38% in
Q1/06) of Metso's net sales. Decrease in the share of aftermarket
operations was mainly due to the acquired Pulping and Power
businesses where the share of aftermarket business is low.
Measured in euros, the volume of the aftermarket operations
increased by 11 percent.

Net sales by business area

                                  Q1/07                Q1/06
                                        % of                 % of
                              EUR        net        EUR       net
                          million      sales    million     sales

Metso Paper                   666         48        417        39
Metso Minerals                540         39        503        46
Metso Automation              146         11        134        12
Valmet Automotive              28          2         31         3
Intra-Metso net sales                                       
and other                    (14)                   (7)
Total                       1,366        100      1,078       100


Net sales by market area

                                 Q1/07                 Q1/06
                                        % of                 % of
                              EUR        net        EUR       net
                          million      sales    million     sales
Europe                        544         40        456        42
North America                 259         19        248        23
South and Central America     218         16        135        13
Asia-Pacific                  285         21        185        17
Rest of the world              60          4         54         5
Total                       1,366        100      1,078       100


Financial result

Metso's operating profit in the first quarter was EUR 108.4
million, or 7.9 percent of net sales (EUR 95.4 million or 8.8% in
Q1/06). Metso Paper's operating profit was affected by a EUR 9
million amortization of intangible assets related to the
acquisition of the Pulping and Power businesses and by a EUR 3
million provision for a credit loss related to a customer project.
Metso Paper's and Metso Automation's operating profit was
negatively affected by a steep increase in the price of stainless
steel, a key raw material for components.

Earnings before interest, tax and amortization (EBITA) were EUR
121.9 million or 8.9 percent of net sales in the first quarter
(EUR 99.9 million or 9.3% in Q1/06).

Metso's net financial expenses were EUR 8 million (EUR 7 million)
in January-March.

Metso's profit before taxes was EUR 100 million (EUR 88 million).
The Corporation's tax rate is estimated to be about 30 percent in
2007.

The profit attributable to shareholders was EUR 70 million,
corresponding to earnings per share of EUR 0.50 (EUR 0.47).

The return on capital employed (ROCE) was 20.7 percent (20.2%) and
the return on equity (ROE) was 20.0 percent (22.1%).


Cash flow and financing

Metso's net cash generated by operating activities was EUR 123
million (EUR 169 million). Net working capital remained at year-
end level. Metso's free cash flow was EUR 97 million (EUR 152
million).

Net interest-bearing liabilities totaled EUR 353 million at the
end of March. Gearing (i.e. the ratio of net interest-bearing
liabilities to shareholder's equity) was 22.9 percent, while the
equity to asset ratio was 37.5 percent. After the first quarter,
following the Annual General Meeting, Metso paid out EUR 212
million in dividends in April, which raised the gearing ratio by
approximately 20 percentage points and decreased the equity to
assets ratio by approximately 3 percentage points.


Capital expenditure

Metso's gross capital expenditure was EUR 32 million excluding
acquisitions (EUR 26 million). About one third of the expenditure
was related to capacity increasing investments.

Metso Paper continued the expansion of the Wuxi service center in
China. Metso Minerals had an ongoing capital expenditure project
to build a crusher pilot plant and test laboratory at the Tampere
unit, Finland. In the first quarter, Metso Automation made a
decision to increase the valve production capacity at its Shanghai
unit in China.

Metso's gross capital expenditure for 2007 excluding acquisitions
is estimated to increase by some 20 percent on 2006.

Metso's research and development expenditure totaled EUR 29
million (EUR 25 million) during January-March, i.e. 2.1 percent of
Metso's net sales.


Acquisitions and divestments

On March 30, 2007, Metso Minerals acquired the North American
metal recycling technology provider, Bulk Equipment Systems and
Technologies Inc. (B.E.S.T. Inc), located in Cleveland, Ohio. The
acquisition price, approximately EUR 9 million, was paid in April.
The company's net sales in 2006 were EUR 8 million and it employs
approximately 40 people.

On March 1, 2007, Metso Paper sold the majority of Metso Paper AG
in Delémont, Switzerland. Metso Paper remains as a minority
shareholder in the company. Metso Paper AG is a supplier of roll
logistic systems, solutions and services. The company has about 70
employees and annual net sales of approximately EUR 10 million.


Acquisition and integration of the Pulping and Power businesses

Metso closed the acquisition of Aker Kvaerner's Pulping and Power
businesses on December 29, 2006. The estimated acquisition price
is EUR 341 million, including EUR 6 million in expenses related to
the acquisition and EUR 52 million in net cash. The process to
define the final balance sheet values of the acquired businesses
continues in accordance with the agreement.

Metso estimates that the annual cost savings achievable through
synergies will amount to EUR 20-25 million after integration.
About one third of these are expected to be realized during 2007.
The non-recurring expenses resulting from integration of the
acquired businesses are estimated to be less than EUR 10 million,
of which EUR 1 million was recognized in the first quarter and the
rest are expected to be recorded in the remaining three quarters
in 2007.

Integration of the acquired businesses into Metso Paper has
proceeded according to plan. During the first quarter, the
customer interface organization was restructured and employee
negotiations were conducted regarding the pruning of overlapping
activities in Sweden and Finland.

The amortization of intangible assets resulting from the
transaction is estimated to be EUR 37 million in 2007, EUR 20
million in 2008 and after that EUR 13 million annually until the
intangible assets have been fully amortized. The rest of the
transaction price exceeding the balance sheet value will remain as
goodwill, which is not amortized. In the first quarter, the
amortization of intangible assets amounted to EUR 9 million.


Personnel

Metso had 25,616 employees at the end of March, which was 62 less
than at the end of 2006 (25,678 employees). In the first quarter,
Metso had an average of 25,647 employees.

Personnel by area

                                    Mar 31,     Dec 31,     Change %
                                       2007        2006
Finland                               9,275       9,281            0
Other Nordic countries                3,555       3,580          (1)
Other Europe                          2,993       3,067          (2)
North America                         3,708       3,715            0
South and Central America             2,410       2,439          (1)
Asia-Pacific                          2,341       2,262            4
Rest of the world                     1,334       1,334            -
Total personnel                      25,616      25,678            0


Subpoena from U.S. Department of Justice requiring Metso to
produce documents

In November 2006, Metso Minerals Industries, Inc., which is Metso
Minerals' U.S. subsidiary, received a subpoena from the Antitrust
Division of the United States Department of Justice calling for
Metso Minerals Industries, Inc. to produce certain documents. The
subpoena relates to an investigation of potential antitrust
violations in the rock crushing and screening equipment industry.
Metso is cooperating fully with the Department of Justice.


Share ownership plan

Metso has a share ownership plan for 2006-2008. The maximum number
of shares to be allocated to the 2006-2008 incentive plan is
360,000 Metso Corporation shares.

The share ownership plan for the year 2006 was directed to 60
Metso managers. Based on the 2006 earnings period, 99,961 shares
corresponding to 0.07 percent of Metso shares were distributed at
the end of March 2007. Members of Metso's Executive Team received
25,815 shares.

Metso's Board of Directors decided in February to direct the 2007
share ownership plan to a total of 84 Metso managers. The entire
Metso Executive Team is included in the sphere of the 2007
incentive plan. The potential reward from the plan will be based
on the achieved operating profit of Metso Corporation and its
business areas in 2007. The share ownership plan in 2007 will
cover a maximum of 125,500 Metso shares. The Metso Executive
Team's allocation of this total is a maximum of 26,500 shares. If
the value of Metso share, determined as the average trading price
during the first two full weeks of March 2008, exceeds EUR 48, the
number of grantable shares for the 2007 plan will be decreased by
a corresponding ratio. Payment of the potential rewards will be
decided during the first quarter of 2008.

The maximum number of shares to be allocated for the 2008 earnings
period as well as the share value limit will be decided by Metso's
Board of Directors in the beginning of 2008.


Shares, options and share capital

A total of 35,000 shares were subscribed with Metso Corporation's
2003A stock options during a period of February 8 - March 15,
2007. The resulting increase in share capital of EUR 59,500.00 was
entered into the Finnish Trade Register on March 29, 2007. The
shares were listed on the Helsinki Stock Exchange together with
the existing shares as of March 30, 2007. Dividend and other
shareholder rights of the new shares commenced from the
registration date.

Following this increase, the Company's share capital at the end of
March was EUR 240,982,843.80 and the total number of shares was
141,754,614. At the end of March, the Parent Company held 60,841
Metso shares. Additionally, a partnership included in Metso's
consolidated financial statements held 200,039 Metso shares.
Together these shares represent 0.18 percent of all the shares and
votes. During the first quarter of 2007, the average number of
outstanding shares excluding the own shares mentioned above was
141,364,382.

After cancellations and exercised options there remains a total of
100,000 year 2003A options, all of them being held by Metso's
subsidiary, Metso Capital Ltd.

Metso's market capitalization excluding the own shares was EUR
5,596 million on March 31, 2007.


BUSINESSES

Metso Paper

EUR million                      Q1/07    Q1/06 Change %     2006
Net sales                          666      417       60    2,092
Earnings before interest, tax                                    
and amortization (EBITA)          37.1     23.8       56    105.6
   % of net sales                  5.6      5.7               5.0
Operating profit                  25.4     21.5       18     89.8
   % of net sales                  3.8      5.2               4.3
Orders received                    653      544       20    2,276
Order backlog at end of period   2,190    1,459       50    2,225
Personnel at end of period      11,469    8,902       29   11,558

Aker Kvaerner's Pulping and Power businesses were acquired as of
December 29, 2006, and the acquired balance sheet was consolidated
to Metso on 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 order
backlog and personnel as at December 31, 2006.

Metso Paper's net sales increased in January-March by 60 percent
and were EUR 666 million. About two thirds of this growth was
attributable to the acquisition of the Pulping and Power
businesses at the end of 2006. The comparable net sales growth
originated mostly from the Paper and Board business line. The
aftermarket operations accounted for 26 percent of net sales (35%
in Q1/06). The decline in the share of aftermarket business was
due to the change in Metso Paper's structure. Measured in euros,
the volume of aftermarket business increased by 19 percent and the
growth came from the Pulping and Power businesses.

Metso Paper's EBITA was EUR 37.1 million, or 5.6 percent of net
sales and operating profit was EUR 25.4 million, or 3.8 percent of
net sales. The first quarter's operating profit includes a EUR 9
million amortization of intangible assets related to the
acquisition of the Pulping and Power businesses, and a EUR 3
million provision for a credit loss related to a customer project.
The rise in the price of stainless steel impacted component prices
and thus Metso Paper's profitability. The Panelboard business
recorded a small operating profit in the first quarter.

The value of orders received by Metso Paper increased by 20
percent on the comparison period and were EUR 653 million. The
growth was mostly due to the acquisition of the Pulping and Power
businesses. In the first quarter, the Paper and Board business
line received orders from Asia for four new machines. A long-term
maintenance agreement was signed in the review period with
Plattling Papier's mill in Germany. This is Metso Paper's first
extensive service agreement for a paper mill, which is still under
construction. The end-of-March order backlog, EUR 2,190 million,
was nearly the same as at year-end 2006.


Metso Minerals

EUR million                      Q1/07    Q1/06 Change %     2006
Net sales                          540      503        7    2,199
Earnings before interest, tax                                    
and amortization (EBITA)          68.7     61.5       12    302.1
   % of net sales                 12.7     12.2              13.7
Operating profit                  67.8     60.2       13    297.7
   % of net sales                 12.6     12.0              13.5
Orders received                    771      686       12    2,655
Order backlog at end of period   1,497    1,043       44    1,277
Personnel at end of period       9,545    8,914        7    9,433

Metso Minerals' first-quarter net sales increased by 7 percent and
were EUR 540 million. Deliveries of the Mining business line were
up on the comparison period, while those of the Construction
business line remained at the level of the comparison period.
Deliveries of the Recycling business line were down on the
comparison period due to the timing of projects. The aftermarket
operations accounted for 44 percent of net sales (44% in Q1/06).

The operating profit of Metso Minerals was EUR 67.8 million, or
12.6 percent of net sales. The Mining business line improved its
operating profit from the comparison period mainly due to volume
growth. The operating profit of the Construction business line was
at the level of the comparison period.

The value of orders received by Metso Minerals was up by 12
percent on the comparison period and totaled EUR 771 million.
Growth came evenly from all business lines. The trend in order
intake was most favorable in Continental and Eastern Europe. In
North America, orders received for mining equipment increased
significantly. The order backlog increased by 17 percent on the
end of 2006 and was EUR 1,497 million at the end of March.


Metso Automation

EUR million                      Q1/07    Q1/06 Change %     2006
Net sales                          146      134        9      613
Earnings before interest, tax                                    
and amortization (EBITA)          15.9     15.7        1     88.3
   % of net sales                 10.9     11.7              14.4
Operating profit                  15.5     15.3        1     86.7
   % of net sales                 10.6     11.4              14.1
Orders received                    228      191       19      717
Order backlog at end of period     356      234       52      276
Personnel at end of period       3,379    3,170        7    3,352

Metso Automation's net sales increased in January-March by 9
percent and were EUR 146 million. Deliveries of the Flow Control
business line, which manufactures field equipment, increased,
while those of the Process Automation Systems business line
remained at the level of the comparison period. The aftermarket
operations accounted for 22 percent of net sales (24% in Q1/06).
Measured in euros, the volume of the aftermarket operations
remained at the level of the comparison period.

Metso Automation's operating profit amounted to EUR 15.5 million
or 10.6 percent of net sales. Operating profit was negatively
affected by a steep increase in the price of raw materials used in
valve casting.

The value of orders received by Metso Automation increased by 19
percent on the comparison period and rose to EUR 228 million. The
growth originated mainly from field equipment orders from the
power, oil and gas industry. The order backlog increased by 29
percent on the end of 2006 and was EUR 356 million at the end of
March.


Valmet Automotive

Valmet Automotive's net sales in January-March were EUR 28
million. Operating profit was EUR 4.4 million, or 15.7 percent of
net sales. In the first quarter, Valmet Automotive manufactured an
average of 127 cars per day, but in early April the manufacturing
volumes dropped according to plan to 102 cars per day. The
decrease was due to general uncertainty in the automotive markets.
Valmet Automotive's number of personnel was adjusted in the first
quarter to correspond with the current production level.


Events after the review period

Decisions of the Annual General Meeting

The Annual General Meeting of Metso Corporation approved on April
3, 2007 the accounts for 2006 as presented by the Board of
Directors and decided to discharge the members of the Board of
Directors and the President and CEO of Metso Corporation from
liability for the financial year 2006. In addition, the Annual
General Meeting approved the proposals of the Board of Directors
to amend the Articles of Association and to authorize the Board of
Directors to resolve of a repurchase of the Corporation's own
shares and of a share issue.

The Annual General Meeting decided to establish a Nomination
Committee of the Annual General Meeting to prepare proposals for
the following Annual General Meeting in respect of the composition
of the Board of Directors along with the director remuneration.
The Nomination Committee consists of representatives appointed by
the four biggest shareholders along with the Chairman of the Board
of Directors as an expert member.

Matti Kavetvuo was re-elected the Chairman of the Board and Jaakko
Rauramo was re-elected the Vice Chairman of the Board. Eva
Liljeblom, Professor at the Swedish School of Economics and
Business Administration, Helsinki, Finland, was elected as a new
member of the Board. The Board members re-elected were Svante
Adde, Maija-Liisa Friman, Christer Gardell and Yrjö Neuvo. The
term of office of Board members lasts until the end of the
following Annual General Meeting.

The Annual General Meeting decided that the annual remuneration
for Board members would be EUR 80,000 for the Chairman, EUR 50,000
for the Vice Chairman and the Chairman of the Audit Committee and
EUR 40,000 for the members, and that the meeting fee including
committee meetings would be EUR 500 per meeting.

The auditing company, Authorized Public Accountants
PricewaterhouseCoopers was re-elected to act as Auditor of the
Corporation until the end of the next Annual General Meeting.

The Annual General Meeting decided that a dividend of EUR 1.50 per
share would be paid for the financial year which ended on December
31, 2006. The dividend was paid on April 17, 2007.


Board committees

The Board of Directors elected members among the Board for the
Audit Committee and Compensation Committee at its assembly
meeting.

The Board's Audit Committee consists of Maija-Liisa Friman
(Chairman), Svante Adde and Eva Liljeblom. The Board of Directors
assigned Svante Adde as the financial expert of the Audit
Committee.

The Board's Compensation Committee consists of Matti Kavetvuo
(Chairman), Jaakko Rauramo, Christer Gardell and Yrjö Neuvo.


Metso evaluates possible delisting from the New York Stock
Exchange

In the beginning of April, Metso Corporation's Board of Directors
decided to evaluate the possible deregistration and delisting of
Metso Corporation's shares from the New York Stock Exchange in
view of the revisions to the U.S. Securities Exchange Act of 1934
published by the U.S. Securities and Exchange Commission on March
27, 2007, which will take effect in early June 2007. Metso
Corporation's Board of Directors will decide on the matter later
this year after having completed the evaluation.


New service center in Guangzhou

In the beginning of the second quarter, Metso Paper made a
decision to build a service center in Guangzhou, China. The value
of the investment is approximately EUR 10 million. The new service
center will start its operations in 2008.


Short-term risks of business operations

The significance of China as the primary market for new paper and
board machines has increased even further, and thus any
substantial changes in demand on the Chinese market may have a
material adverse effect on Metso Paper's profitability. Metso
seeks to mitigate these risks by developing its global aftermarket
operations and increasing the flexibility of its delivery chain.

The delivery times for Metso products have been lengthened because
of strong growth in order intake and backlog. Therefore, there is
a risk that material and other costs may rise significantly during
the delivery time and have a greater impact on Metso's
profitability than currently anticipated. In the current strong
demand situation, the scarcity of certain components and
subcontractor resources, particularly at Metso Minerals and Metso
Automation, may also lengthen delivery times.

Metso strives to manage and limit the potential adverse effects of
these and other risks. However, if the risks materialize, they
could have a significant adverse effect on Metso's business,
financial position and results of operations or on the price of
Metso share.


Short-term outlook

The favorable market outlook for Metso's products and services is
expected to continue for the rest of 2007.

Metso Paper's market situation is estimated to continue much the
same as in the year's first quarter. The demand for paper, board
and tissue machines and for fiber lines is expected to be
satisfactory. The demand for power plants is estimated to be good.
Also the demand for Metso Paper's aftermarket services is expected
to remain satisfactory.

Metso Minerals' favorable market outlook is expected to continue.
The demand is anticipated to remain at the first quarter's
excellent level in the mining and metals recycling industries, and
at a good level in the construction industry. The demand for
aftermarket services is expected to remain excellent.

Metso Automation's market outlook in the pulp and paper customer
segment is estimated to be good. In the power, oil and gas
industries, the demand is expected to be good in process
automation systems and excellent in flow control systems.

It is estimated that Metso's financial performance for the rest of
the year will be stronger than in the first quarter. Metso's net
sales in 2007 are estimated to grow by more than 20 percent on
2006, thanks to the strong order backlog, continuing favorable
market situation and the expanded business scope. The operating
profit in 2007 is estimated to clearly improve. It is estimated
that the operating profit margin in 2007 will be slightly below
Metso's target, which is over 10 percent. This is primarily due to
the high first-year amortization of intangible assets, integration
costs and only partially materializing synergy benefits related to
the acquisition of the Pulping and Power businesses.

The estimates concerning financial performance are based on
Metso's current structure, order backlog and market outlook.

Helsinki, April 27, 2007

Metso Corporation's Board of Directors


The interim review is unaudited

CONSOLIDATED STATEMENTS OF INCOME                                 


EUR million                           1-3/        1-3/       1-12/
                                      2007        2006        2006
Net sales                            1,366       1,078       4,955
Cost of goods sold                 (1,026)       (778)     (3,659)
Gross profit                           340         300       1,296
Selling, general and                 (238)       (206)       (846)
administrative expenses
Other operating income and               6           1           6
expenses, net
Share in profits of associated           0           0           1
companies
Operating profit                       108          95         457
  % of net sales                      7.9%        8.8%        9.2%
Financial income and expenses,         (8)         (7)        (36)
net
Profit on continuing operations        100          88         421
before tax
Income taxes on continuing            (30)        (21)        (11)
operations
Profit on continuing operations         70          67         410
Profit (loss) on discontinued            -           -           -
operations
Profit (loss)                           70          67         410
                                                        
Profit (loss) attributable to            0           0           1
minority interests
Profit (loss) attributable to           70          67         409
equity shareholders
Profit (loss)                           70          67         410
                                                        
                                                        
Earnings per share from                                 
continuing operations, EUR
 Basic                                0.50        0.47        2.89
 Diluted                              0.50        0.47        2.89
                                                                   
Earnings per share from                                            
discontinued operations, EUR
 Basic                                   -           -           -
 Diluted                                 -           -           -
                                                                   
Earnings per share from continuing and                            
discontinued operations, EUR
 Basic                                0.50        0.47        2.89
 Diluted                              0.50        0.47        2.89


CONSOLIDATED BALANCE SHEETS

ASSETS

EUR million                            Mar 31,    Mar 31,   Dec 31,
                                          2007       2006      2006
Non-current assets                                                 
 Intangible assets                                                 
  Goodwill                                 772        496       768
  Other intangible assets                  265        100       274
                                         1,037        596     1,042
 Property, plant and equipment                                     
  Land and water areas                      54         58        57
  Buildings and structures                 217        213       221
  Machinery and equipment                  312        280       318
  Assets under construction                 29         19        19
                                           612        570       615
 Financial and other assets                                        
  Investments in associated                 19         19        19
  companies
  Available-for-sale equity                 15         13        15
  investments
  Loan and other interest bearing            6          5         6
  receivables
  Available-for-sale financial               5         34         5
  assets
  Deferred tax asset                       218        156       228
  Other non-current assets                  29         47        33
                                           292        274       306
                                                                   
Total non-current assets                 1,941      1,440     1,963
                                                                   
Current assets                                                     
 Inventories                             1,276        963     1,112
                                                                   
 Receivables                                                       
  Trade and other receivables            1,074        840     1,218
  Cost and earnings of projects            302        206       284
  under construction in excess
  of advance billings
  Loan and other interest bearing            2          2         2
  receivables
  Available-for-sale                        10        100        10
  financial assets
  Tax receivables                           20         15        16
                                         1,408      1,163     1,530
                                                                   
 Cash and cash equivalents                 371        494       353
                                                                   
Total current assets                     3,055      2,620     2,995
                                                                   
Assets held for sale                         -          -         -
                                                                   
TOTAL ASSETS                             4,996      4,060     4,958


SHAREHOLDERS' EQUITY AND LIABILITIES

EUR million                          Mar 31,    Mar 31,     Dec 31,
                                        2007       2006        2006
Equity                                                              
  Share capital                          241        241         241
  Share premium reserve                   77         76          77
  Cumulative translation                (45)       (16)        (45)
  differences
  Fair value and other reserves          436        434         432
  Retained earnings                      827        618         763
 Equity attributable to                1,536      1,353       1,468
 shareholders
                                                                    
 Minority interests                        6          6           6
                                                                    
Total equity                           1,542      1,359       1,474
                                                                    
Liabilities                                                         
 Non-current liabilities                                            
  Long-term debt                         590        589         605
  Post employment benefit                159        153         157
  obligations
  Deferred tax liability                  54         21          57
  Provisions                              50         32          53
  Other long-term liabilities              2          4           2
 Total non-current liabilities           855        799         874
                                                                    
 Current liabilities                                                
  Current portion of long-term           107        160          93
  debt
  Short-term debt                         50         29         132
  Trade and other payables             1,302        936       1,238
  Provisions                             203        181         213
  Advances received                      653        399         655
  Billings in excess of cost and         230        164         222
  earnings of projects under
  construction
  Tax liabilities                         54         33          57
 Total current liabilities             2,599      1,902       2,610
                                                                    
 Liabilities held for sale                 -          -           -
                                                                    
Total liabilities                      3,454      2,701       3,484
                                                                    
TOTAL SHAREHOLDERS' EQUITY AND         4,996      4,060       4,958
LIABILITIES
                                                                    
                                                                    
NET INTEREST BEARING LIABILITIES                                    
                                                                    
Long-term interest bearing debt          590        589         605
Short-term interest bearing debt         157        189         225
Cash and cash equivalents              (371)      (494)       (353)
Other interest bearing assets           (23)      (141)        (23)
Total                                    353        143         454



CONDENSED CONSOLIDATED CASH FLOW STATEMENT


EUR million                               1-3/       1-3/     1-12/
                                          2007       2006      2006
Cash flows from operating                                  
activities:
Profit (loss)                               70         67       410
Adjustments to reconcile profit                            
(loss) to net cash provided by
operating activities
                                                           
  Depreciation                              36         26       105
  Provisions / Efficiency                    0        (2)       (7)
  improvement programs
  Interests and dividend income              6          8        26
  Income taxes                              30         21        11
  Other                                      4          1         7
Change in net working capital                1         62      (18)
Cash flows from operations                 147        183       534
  Interest paid and dividends                0          1      (24)
  received
  Income taxes paid                       (24)       (15)      (68)
Net cash provided by (used in)             123        169       442
operating activities
Cash flows from investing                                  
activities:
  Capital expenditures on fixed           (32)       (26)     (129)
  assets
  Proceeds from sale of fixed                6          9        14
  assets
  Business acquisitions, net of              -          -     (277)
  cash acquired
  Proceeds from sale of businesses,          2          -        13
  net of cash sold
  (Investments in) proceeds from             3         33       154
  sale of financial assets
  Other                                      0          1       (2)
Net cash provided by (used in)            (21)         17     (227)
investing activities
Cash flows from financing                                  
activities:
  Share options exercised                    0          -         1
  Redemption of own shares                   -          -      (11)
  Dividends paid                             -          -     (198)
  Net funding                             (85)        (8)        35
  Other                                      -        (5)       (6)
Net cash provided by (used in)            (85)       (13)     (179)
financing activities
Net increase (decrease) in cash and         17        173        36
cash equivalents
Effect from changes in exchange              1        (2)       (6)
rates
Cash and cash equivalents at               353        323       323
beginning
of period
Cash and cash equivalents at end of        371        494       353
period
                                                           
Free cash flow                                             
                                                           
                                                           
EUR million                               1-3/       1-3/     1-12/
                                          2007       2006      2006
Net cash provided by operating             123        169       442
activities
Capital expenditures on fixed             (32)       (26)     (129)
assets
Proceeds from sale of fixed assets           6          9        14
Free cash flow                              97        152       327



CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY


                  Sha-   Sha-  Cumu-    Fair Retai-  Equi-  Mino-  To-
                    re     re lative   value    ned     ty   rity  tal
                 capi-   pre- trans-     and   ear- attri-  inte- equi-
                   tal   mium lation   other  nings    bu-   rest   ty
                          re-    ad-     re-         table
                         ser-  just-    ser-            to
                           ve  ments     ves        share-
                                                      hol-
                                                      ders
                                                                      
                                                                      
                                                                      
EUR million                                                           
Balance at         241     76    (9)     424    553  1,285      7 1,29
Jan 1, 2006                                                          2
Dividends            -      -      -       -      -      -      -    -
Share options        -      -      -       -      -      -      -    -
exercised
Translation          -      -   (13)       -      -   (13)      - (13)
differences
Net investment       -      -      4       -      -      4      -    4
hedge gains
(losses)
Cash flow            -      -      -      10      -     10      -   10
hedges, net of
tax
Available-for-       -      -      -       -      -      -      -    -
sale equity
investments,
net of tax
Other                -      -      2       -    (2)      -    (1)  (1)
Net profit for       -      -      -       -     67     67      0   67
the period
Balance at         241     76   (16)     434    618  1,353      6 1,35
Mar 31, 2006                                                         9
                                                                        
Balance at         241     77   (45)     432    763  1,468      6 1,47
Dec 31, 2006                                                         4
Dividends            -      -      -       -      -      -      -    -
Share options        0      0      -       -      -      0      -    0
exercised
Translation          -      -      8       -      -      8      -    8
differences
Net investment       -      -    (8)       -      -    (8)      -  (8)
hedge gains
(losses)
Cash flow            -      -      -     (2)      -    (2)      -  (2)
hedges, net of
tax
Available-for-       -      -      -       -      -      -      -    -
sale equity
investments,
net of tax
Redemption of        -      -      -       -      -      -      -    -
own shares
Other                -      -      -       6    (6)      -      -    0
Net profit for       -      -      -       -     70     70      0   70
the period
Balance at         241     77   (45)     436    827  1,536      6 1,54
Mar 31, 2007                                                         2



ACQUISITIONS


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, which was paid in April, was approximately EUR 9
million.
The company's net sales were about EUR 2 million and net income
approximately
EUR 0.2 million in January-March 2007. Part of the excess purchase price,
EUR 2
million, was allocated to intangible assets, representing the calculated
preliminary fair values of acquired customer base, brands, new technology
and
order backlog. The remaining excess arising from the acquisition, EUR 7
million, represents goodwill related to Metso's improved position in
the North American metal recycling market.

Information on acquisitions for January-March 2007 is as follows
(there were no acquisitions in the comparison period January-March
2006):

                                   Carrying  Fair value   Fair value
                                     amount allocations
EUR million                                                         
Intangible assets                         -           2            2
Property, plant and equipment             0           -            0
Inventories                               1           0            1
Trade and other receivables               1           -            1
Deferred tax liabilities                  -         (1)          (1)
Other liabilities assumed               (1)           -          (1)
Non-interest bearing net assets           1           1            2
                                                         
Cash and cash equivalents                 0           -            0
acquired
Debt assumed                              0           -            0
Purchase price                          (9)           -          (9)
Goodwill                                  8         (1)            7

Purchase price payable                                            (9)


ASSETS PLEDGED AND CONTINGENT LIABILITIES


EUR million                      Mar 31,       Mar 31,       Dec 31,
                                    2007          2006          2006
Mortgages on corporate debt           14             3            14
Other pledges and                                       
contingencies
  Mortgages                            2             2             2
  Pledged assets                       0             0             0
Guarantees on behalf of                -             -             -
associated company
obligations
Other guarantees                       9             4             6
                                                        
Repurchase and other                   9            12            10
commitments
Lease commitments                    155           123           166


NOTIONAL AMOUNTS OF DERIVATIVE FINANCIAL INSTRUMENTS

EUR million                      Mar 31,       Mar 31,       Dec 31,
                                    2007          2006          2006
Forward exchange rate              1,459         1,142         1,357
contracts
Interest rate and currency             1             2             1
swaps
Currency swaps                         1             1             1
Interest rate swaps                  143           183           143
Interest rate futures                  -             -             -
contracts
Option agreements                                       
  Bought                              11             5             7
  Sold                                12            11             6

The notional amount of electricity forwards was 463 GWh as of March 31,
2007 and 382 GWh as of March 31, 2006.

The notional amounts indicate the volumes in the use of derivatives,
but do not indicate the exposure to risk.

KEY RATIOS

                                          1-3/       1-3/       1-12/
                                          2007       2006        2006
Earnings per share from continuing        0.50       0.47        2.89
operations, EUR
Earnings per share from                      -          -           -
discontinued operations, EUR
Earnings per share from continuing        0.50       0.47        2.89
and discontinued operations, EUR
                                                                       
Equity/share at end of period, EUR       10.86       9.56       10.38
Return on equity (ROE),                   20.0       22.1        30.3
% (annualized)
Return on capital employed (ROCE),        20.7       20.2        22.2
% (annualized)
Equity to assets ratio at end             37.5       38.9        36.1
of period, %
Gearing at end of period, %               22.9       10.5        30.8
                                                            
Free cash flow                              97        152         327
Free cash flow/share                      0.68       1.07        2.31
                                                            
Gross capital expenditure of                32         26         131
continuing operations (excl.
business acquisitions)
Business acquisitions, net of cash           -          -         277
acquired
Depreciation and amortization of            36         26         105
continuing operations
                                                            
Number of outstanding shares at end    141,494    141,594     141,359
of period (thousands)
Average number of shares               141,364    141,594     141,581
(thousands)
Average number of diluted shares       141,364    141,628     141,600
(thousands)


EXCHANGE RATES USED


                         1-3/    1-3/   1-12/ Mar 31,  Mar 31, Dec 31,
                         2007    2006    2006    2007     2006    2006
USD (US dollar)        1.3161  1.2032  1.2630  1.3318   1.2104  1.3170
SEK (Swedish krona)    9.2248  9.3769  9.2533  9.3462   9.4315  9.0404
GBP (Pound sterling)   0.6722  0.6868  0.6819  0.6798   0.6964  0.6715
CAD (Canadian          1.5370  1.3829  1.4267  1.5366   1.4084  1.5281
dollar)
BRL (Brazilian real)   2.7699  2.6216  2.7375  2.7195   2.6484  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                         1-3/      1-3/  4/2006-     1-12/
                                    2007      2006   3/2007      2006
Metso Paper                          666       417    2,341     2,092
Metso Minerals                       540       503    2,236     2,199
Metso Automation                     146       134      625       613
 Valmet Automotive                    28        31      106       109
 Corporate office and other            -         3        7        10
Corporate office and others           28        34      113       119
total
Intra Metso net sales               (14)      (10)     (72)      (68)
Metso total                        1,366     1,078    5,243     4,955


OTHER OPERATING INCOME (+) AND EXPENSES (-), NET


EUR million                         1-3/      1-3/  4/2006-     1-12/
                                    2007      2006   3/2007      2006
Metso Paper                          1.9       0.9   (10.0)    (11.0)
Metso Minerals                       1.2       2.3     15.0      16.1
Metso Automation                     0.5       0.2      0.6       0.3
 Valmet Automotive                   0.0       0.0      0.0       0.0
 Corporate office and other          2.2     (1.8)      4.4       0.4
Corporate office and others          2.2     (1.8)      4.4       0.4
total
Metso total                          5.8       1.6     10.0       5.8

SHARE IN PROFITS OF ASSOCIATED COMPANIES

EUR million                         1-3/      1-3/  4/2006-     1-12/
                                    2007      2006   3/2007      2006
Metso Paper                          0.4       0.3      1.8       1.7
Metso Minerals                       0.0       0.0      0.1       0.1
Metso Automation                     0.0       0.2      0.6       0.8
 Valmet Automotive                     -         -        -         -
 Corporate office and other          0.0     (0.6)    (1.1)     (1.7)
Corporate office and others          0.0     (0.6)    (1.1)     (1.7)
total
Metso total                          0.4     (0.1)      1.4       0.9

OPERATING PROFIT (LOSS)

EUR million                         1-3/      1-3/  4/2006-     1-12/
                                    2007      2006   3/2007      2006
Metso Paper                         25.4      21.5     93.7      89.8
Metso Minerals                      67.8      60.2    305.3     297.7
Metso Automation                    15.5      15.3     86.9      86.7
 Valmet Automotive                   4.4       5.0     11.1      11.7
 Corporate office and other        (4.7)     (6.6)   (26.8)    (28.7)
Corporate office and others        (0.3)     (1.6)   (15.7)    (17.0)
total
Metso total                        108.4      95.4    470.2     457.2

OPERATING PROFIT (LOSS), % OF NET SALES

%                                   1-3/      1-3/  4/2006-     1-12/
                                    2007      2006   3/2007      2006
Metso Paper                          3.8       5.2      4.0       4.3
Metso Minerals                      12.6      12.0     13.7      13.5
Metso Automation                    10.6      11.4     13.9      14.1
 Valmet Automotive                  15.7      16.1     10.5      10.7
 Corporate office and other          n/a       n/a      n/a       n/a
Corporate office and others          n/a       n/a      n/a       n/a
total
Metso total                          7.9       8.8      9.0       9.2

EBITA

EUR million                         1-3/      1-3/  4/2006-     1-12/
                                    2007      2006   3/2007      2006
Metso Paper                         37.1      23.8    118.9     105.6
Metso Minerals                      68.7      61.5    309.3     302.1
Metso Automation                    15.9      15.7     88.5      88.3
 Valmet Automotive                   4.4       5.0     11.1      11.7
 Corporate office and other        (4.2)     (6.1)   (24.7)    (26.6)
Corporate office and others          0.2     (1.1)   (13.6)    (14.9)
total
Metso total                        121.9      99.9    503.1     481.1

EBITA, % OF NET SALES

%                                   1-3/      1-3/  4/2006-     1-12/
                                    2007      2006   3/2007      2006
Metso Paper                          5.6       5.7      5.1       5.0
Metso Minerals                      12.7      12.2     13.8      13.7
Metso Automation                    10.9      11.7     14.2      14.4
 Valmet Automotive                  15.7      16.1     10.5      10.7
 Corporate office and other          n/a       n/a      n/a       n/a
Corporate office and others          n/a       n/a      n/a       n/a
total
Metso total                          8.9       9.3      9.6       9.7

ORDERS RECEIVED

EUR million                         1-3/      1-3/  4/2006-     1-12/
                                    2007      2006   3/2007      2006
Metso Paper                          653       544    2,385     2,276
Metso Minerals                       771       686    2,740     2,655
Metso Automation                     228       191      754       717
 Valmet Automotive                    28        31      106       109
 Corporate office and other            0         2       13        15
Corporate office and others           28        33      119       124
total
Intra Metso orders received         (16)      (17)     (66)      (67)
Metso total                        1,664     1,437    5,932     5,705


QUARTERLY INFORMATION

NET SALES


EUR million                    1-3/    4-6/    7-9/   10-12/    1-3/
                               2006    2006    2006     2006    2007
Metso Paper                     417     469     489      717     666
Metso Minerals                  503     541     525      630     540
Metso Automation                134     140     146      193     146
  Valmet Automotive              31      28      22       28      28
  Corporate office and            3       2       2        3       -
other
Corporate office and others      34      30      24       31      28
total
Intra Metso net sales          (10)    (10)    (15)     (33)    (14)
Metso total                   1,078   1,170   1,169    1,538   1,366



OTHER OPERATING INCOME (+) AND EXPENSES (-), NET

EUR million                    1-3/    4-6/    7-9/   10-12/    1-3/
                               2006    2006    2006     2006    2007
Metso Paper                     0.9     1.7   (3.2)   (10.4)     1.9
Metso Minerals                  2.3     3.2   (0.1)     10.7     1.2
Metso Automation                0.2     0.1   (0.4)      0.4     0.5
  Valmet Automotive             0.0     0.0     0.0      0.0     0.0
  Corporate office and        (1.8)     2.9     0.4    (1.1)     2.2
other
Corporate office and others   (1.8)     2.9     0.4    (1.1)     2.2
total
Metso total                     1.6     7.9   (3.3)    (0.4)     5.8


OPERATING PROFIT (LOSS)

EUR million                    1-3/    4-6/    7-9/   10-12/    1-3/
                               2006    2006    2006     2006    2007
Metso Paper                    21.5    25.1    30.0     13.2    25.4
Metso Minerals                 60.2    71.6    75.9     90.0    67.8
Metso Automation               15.3    19.6    20.0     31.8    15.5
  Valmet Automotive             5.0     4.0     1.7      1.0     4.4
  Corporate office and        (6.6)   (3.9)   (7.2)   (11.0)   (4.7)
other
Corporate office and others   (1.6)     0.1   (5.5)   (10.0)   (0.3)
total
Metso total                    95.4   116.4   120.4    125.0   108.4


EBITA

EUR million                    1-3/    4-6/    7-9/   10-12/    1-3/
                               2006    2006    2006     2006    2007
Metso Paper                    23.8    27.4    32.3     22.1    37.1
Metso Minerals                 61.5    72.8    76.7     91.1    68.7
Metso Automation               15.7    19.9    20.5     32.2    15.9
  Valmet Automotive             5.0     4.0     1.7      1.0     4.4
  Corporate office and        (6.1)   (3.4)   (6.8)   (10.3)   (4.2)
other
Corporate office and others   (1.1)     0.6   (5.1)    (9.3)     0.2
total
Metso total                    99.9   120.7   124.4    136.1   121.9



CAPITAL EMPLOYED

EUR million                 Mar 31,    June Sep 30,  Dec 31, Mar 31,
                               2006     30,    2006     2006    2007
                                       2006
Metso Paper                     266     300     292      631     572
Metso Minerals                  934     939     955      967     983
Metso Automation                123     132     130      149     156
  Valmet Automotive              32      28      31       23      23
  Corporate office and          783     656     745      534     555
other
Corporate office and others     815     684     776      557     578
total
Metso total                   2,138   2,055   2,153    2,304   2,289

ORDERS RECEIVED

EUR million                    1-3/    4-6/    7-9/   10-12/    1-3/
                               2006    2006    2006     2006    2007
Metso Paper                     544     564     491      677     653
Metso Minerals                  686     628     636      705     771
Metso Automation                191     181     183      162     228
  Valmet Automotive              31      28      22       28      28
  Corporate office and            2       3       6        4       0
other
Corporate office and others      33      31      28       32      28
total
Intra Metso orders received    (17)    (14)    (17)     (19)    (16)
Metso total                   1,437   1,390   1,321    1,557   1,664

ORDER BACKLOG

EUR million                 Mar 31,    June Sep 30,  Dec 31, Mar 31,
                               2006     30,    2006     2006    2007
                                       2006
Metso Paper                   1,459   1,540   1,547    2,225   2,190
Metso Minerals                1,043   1,101   1,213    1,277   1,497
Metso Automation                234     272     309      276     356
  Valmet Automotive               -       -       -        -       -
  Corporate office and            3       3       7        0       0
other
Corporate office and others       3       3       7        0       0
total
Intra Metso order backlog      (47)    (52)    (54)     (41)    (44)
Metso total                   2,692   2,864   3,022    3,737   3,999

PERSONNEL


                            Mar 31,    June Sep 30,  Dec 31, Mar 31,
                               2006     30,    2006     2006    2007
                                       2006
Metso Paper                   8,902   9,328   9,445   11,558  11,469
Metso Minerals                8,914   9,124   9,158    9,433   9,545
Metso Automation              3,170   3,341   3,315    3,352   3,379
  Valmet Automotive           1,088   1,077   1,082    1,013     899
  Corporate office and          329     351     342      322     324
other
Corporate office and others   1,417   1,428   1,424    1,335   1,223
total
Metso total                  22,403  23,221  23,342   25,678  25,616


NOTES TO THE INTERIM REVIEW

This interim review has been prepared in accordance with IAS 34
'Interim Financial Reporting.' The same accounting principles have
been applied as in the annual financial statements.

New accounting standards

IFRS 7
In August 2005, IASB issued IFRS 7 ‘Financial Instruments:
Disclosures' which requires the company to disclose information
enabling users of its financial statements to evaluate the
significance of financial instruments to its financial position
and performance. Metso adopted the standard and the related
amendments to IAS 1 'Presentation of Financial Statements' from
January 1, 2007.

IFRS 8
In November 2006, the IASB issued IFRS 8 'Operating segments'
which requires the application of the 'management approach' in
segment reporting. This would result in uniformity between the
disclosed information and the principles for evaluating the
financial performance of segments followed internally by the
management. Metso will evaluate the effects of IFRS 8 on the
consolidated financial statements. The standard will come into
force in the financial years beginning after January 1, 2009, but
may already be applied in earlier financial years.


Shares traded on the Helsinki and New York Stock Exchanges

The number of Metso Corporation shares traded on the Helsinki
Stock Exchange in January-March was 98 million, equivalent to a
turnover of EUR 3,821 million. The share price on March 31, 2007
was EUR 39.55. The highest quotation was EUR 42.20 and the lowest
EUR 34.79.

The number of Metso ADRs (American Depository Receipts) traded on
the New York Stock Exchange was 1.3 million, equivalent to a
turnover of USD 66 million. The price of an ADR on March 31, 2007
was USD 52.81. The highest quotation was USD 54.27 and the lowest
USD 44.37.


Disclosures of changes in holdings

J.P. Morgan Chase & Co. announced that the funds they managed held
6,996,732 Metso shares/ADRs on February 12, 2007 corresponding to
4.94 percent of the paid up share capital of Metso Corporation.


Publication dates for Metso's Interim Reviews in 2007

Metso's Interim Review for January - June will be published on
July 26, 2007,
Interim Review for January - September on October 25, 2007.

Metso is a global engineering and technology corporation with 2006
net sales of approximately EUR 5 billion. Its 25,500 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


For further information, please contact:
Jorma Eloranta, President and CEO, Metso Corporation, tel. +358
204 84 3000
Olli Vaartimo, Executive Vice President and CFO, Metso
Corporation, tel. +358 204 84 3010
Johanna Sintonen, Vice President, Investor Relations, Metso
Corporation, tel. +358 204 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 Corporation



Olli Vaartimo                       Kati Renvall
Executive Vice President and CFO    Vice President,
                                    Corporate Communications


Distribution:
Helsinki Stock Exchange
New York Stock Exchange
The media
www.metso.com

q107eng.pdf