2016-02-04 08:01:16 CET
2016-02-04 08:01:16 CET
REGULATED INFORMATION
Metso Oyj - Financial Statement Release
Metso's Financial Statements Review January 1 - December 31, 2015
Metso's Financial Statements Review January 1 - December 31, 2015
Metso Corporation's stock exchange release on February 4, 2016 at 09:00 a.m.
local time
Metso will arrange a results audiocast today at 13:00 EET (6:00 EST, 11:00 UTC,
12:00 CET). The audiocast is viewable at www.metso.com/latestreports. A
simultaneous conference call will be arranged, allowing participants to ask
questions. A recording of the event is available at the earliest after the event
has finished and a transcript will be available for downloading.
This is a summary of Metso's January-December 2016 Financial Statements Review.
Complete report is attached to this release as a pdf-file and is also available
at www.metso.com/latestreports
Figures in brackets refer to the corresponding period in 2014, unless otherwise
stated. The Process Automation Systems (PAS) business was divested on April
1, 2015, and is not included in the Flow Control segment's figures for April-
December 2015. Figures for 2014 and all comparison periods prior to the
divestment include PAS. Like-for-like comparisons are made with a separate
note.
Fourth-quarter 2015 in brief
* Orders received EUR 758 million (EUR 801 million, or EUR 721 million
excluding PAS), of which EUR 440 million (EUR 481 million, or EUR 446
million excluding PAS) were services orders.
* Net sales EUR 754 million (EUR 1,018 million, or EUR 921 million excluding
PAS), of which EUR 481 million services (EUR 572 million, or EUR 525 million
excluding PAS).
* EBITA before non-recurring items EUR 91 million and 12.0% of net sales (EUR
138 million and 13.5%, or EUR 120 million and 13.0% excluding PAS).
Full-year 2015 in brief
* Weak economic growth in emerging markets and low commodity prices had a
negative impact on the demand for capital equipment in the mining and oil &
gas industries.
* Orders received EUR 3,027 million (EUR 3,409 million), or EUR 2,965 million
(EUR 3,074 million) excluding PAS. Services orders totaled EUR 1,913 million
(EUR 2,052 million), or EUR 1,879 million (EUR 1,910 million) excluding PAS.
* Net sales EUR 2,977 million (EUR 3,658 million), or EUR 2,923 million (EUR
3,363 million) excluding PAS. Services net sales totaled EUR 1,869 million
(EUR 2,007 million) or EUR 1,840 million (EUR 1,869 million) excluding PAS.
* EBITA before non-recurring items EUR 347 million and 11.7 percent of net
sales (EUR 460 million and 12.6%), or EUR 356 million and 12.2 percent (EUR
426 million and 12.7%) excluding PAS.
* Strong free cash flow of EUR 341 million (EUR 204 million).
* Divestment of the Process Automation Systems business resulted in a gain of
EUR 252 million.
* Earnings per share EUR 2.95 (EUR 1.25).
* Strong balance sheet with gearing of 10.6 percent (45.6%).
* The Board will propose to the AGM a dividend of EUR 1.05 (EUR 1.05 and extra
dividend of EUR 0.40).
Outlook for 2016
Metso has changed its guidance policy and will discontinue publishing financial
guidance as of the beginning of 2016. Instead of numerical financial guidance on
the development of our net sales and profitability, we will share our views on
the overall trading conditions, expected demand development in our end markets,
as well as some financial information, such as expected capital expenditure and
restructuring costs during the current financial year.
Metso's overall trading conditions are expected to weaken somewhat in 2016
compared to 2015. Demand for our products and services is expected to develop as
follows:
* remain weak for mining equipment and satisfactory for mining services
* remain satisfactory for aggregates equipment and services
* remain satisfactory for Flow Control products related to customers' new
investments and good for Flow Control services
We expect to invoice EUR 1.1 billion from our year-end 2015 backlog during
2016. Internal efficiency actions will continue to improve competitiveness and
mitigate price pressure that can be seen in the markets that are facing weak or
satisfactory demand. Restructuring costs are expected to be lower than in 2015.
Capital expenditure without acquisitions and net financial costs are expected to
be on the same level as in 2015.
President and CEO Matti Kähkönen:
Last year we achieved fairly good results overall, despite a weakening demand in
many of our end markets. Our profitability (EBITA margin before non-recurring
items) remained on a good level, 12.2 percent compared to 12.7 percent in 2014,
while orders and net sales declined. These figures do not include the divested
PAS business. The gain from the PAS divestment increased our operating profit
(EBIT) to EUR 555 million and earnings per share to EUR 2.95. I would also want
to highlight the substantial progress in Metso's safety culture, seen in the
decreasing number of work-related incidents. The number of recorded incidents
decreased by 28 percent from the previous year, and the incident frequency rate
was 2.6 compared to 3.9 in 2014.
We also continued to make good progress in making Metso an increasingly better
and more competitive company. We have renewed our product and services offering
to meet our customers' changing needs, and we have implemented new business
models so that our organizations are structurally lighter, responsibilities are
clear in all areas, and we are generally more flexible in reacting to changes in
the business environment.
This report features our renewed guidance policy, which follows industry
practice. Metso is today a product and services-focused company, with less
internal volatility than before. From this perspective this change is a natural
step for us and independent of prevailing market conditions. Our renewed market
outlook statement will provide the capital markets with sufficient information
to form a justified opinion on Metso's future development.
Thanks to our motivated personnel, competitive services, product offering,
flexible operating models, strong balance sheet and financial position, I am
confident that we will continue to do well in 2016 and beyond.
Key figures
EUR million Q4/ Q4/
2015 2014 Change % 2015 2014 Change %
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Orders received 758 801 -5 3,027 3,409 -11
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Services orders 440 481 -9 1,913 2,052 -7
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% of orders received 58 60 63 60
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Order backlog at the end of the year 1,268 1,575 -19
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Net sales 754 1,018 -26 2,977 3,658 -19
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Services net sales 481 572 -16 1,869 2,007 -7
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% of net sales 64 56 63 55
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Earnings before interest, tax and
amortization (EBITA) and non-
recurring items 91 138 -34 347 460 -25
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% of net sales 12.0 13.5 11.7 12.6
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Operating profit* 67 101 -33 555 351 58
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% of net sales 8.9 9.9 18.7 9.6
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Earnings per share, EUR 0.35 0.36 -3 2.95 1.25 136
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Free cash flow 59 63 -6 341 204 67
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Return on capital employed (ROCE)
before taxes, %** 25.7 16.4
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Equity-to-asset ratio at the end of
the year, % 48.3 40.5
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Net gearing at the end of the year,
% 10.6 45.6
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Personnel at the end of the year 12,375 15,644 -21
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Figures for full-year 2015, Q4/2014 and full-year 2014 include Process
Automation Systems.
*Operating profit for full-year 2015 includes the gain on the disposal of the
PAS business.
** ROCE for full-year 2015 includes the gain on the disposal of the PAS
business.
Key Figures excluding PAS
EUR million Q4/ Q4/
2015 2014 Change % 2015 2014 Change %
-------------------------------------------------------------------------------
Orders received 758 721 5 2,965 3,074 -4
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Services orders 440 446 -1 1,879 1,910 -2
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Net sales 754 921 -18 2,923 3,363 -13
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Services net sales 481 525 -9 1,840 1,869 -2
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Earnings before interest, tax and
amortization (EBITA) and non-
recurring items 91 120 -24 356 426 -16
-------------------------------------------------------------------------------
% of net sales 12.0 13.0 12.2 12.7
-------------------------------------------------------------------------------
Return on capital employed (ROCE)
before taxes, % 16.1 -
-------------------------------------------------------------------------------
Personnel at the end of the year 12,375 14,072 -12
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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 6,400
services professionals. Metso has an uncompromising attitude towards safety.
Metso is listed on the NASDAQ OMX Helsinki, Finland, and had net sales of about
EUR 2.9 billion in 2015. Metso employs over 12,000 persons in more than 50
countries. Expect results.
www.metso.com, twitter.com/metsogroup
For further information, please contact:
Matti Kähkönen, President and CEO, Metso Corporation, tel. +358 20 484 3000
Harri Nikunen, CFO, Metso Corporation, tel. +358 20 484 3010
Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel.
+358 20 484 3253
Metso Corporation
Harri Nikunen
CFO
Juha Rouhiainen
VP, Investor Relations
Distribution:
NASDAQ OMX Helsinki Ltd
Media
www.metso.com
Conference call details
Conference call participants are requested to dial in five minutes before the
scheduled time on:
United States: +1 646 254 3362
other countries: +44 (0)20 3427 1911
The confirmation code for joining the conference call is 3735943
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.
[HUG#1983637]
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