Outotec Oyj - Half Year financial report

Outotec's Half year financial report 2017

OUTOTEC OYJ HALF YEAR FINANCIAL REPORT JULY 27, 2017 AT 9:00 AM

HALF YEAR FINANCIAL REPORT 2017

Good development in Minerals Processing, recovery of Metals, Energy & Water
pending

"Our half year order intake improved significantly from last year, reflecting a
more positive market sentiment in the mining industry. Our Minerals Processing
segment, whose market activity started to improve in the second quarter last
year, continued to develop well and its profitability improved.

During the reporting period, our order intake increased by 34% from last year.
Service order intake was up by 15% mainly due to an increase in spare parts and
shutdown services. Our sales increased by 6%; the growth came from process
equipment orders in Minerals Processing. Increased sales improved our adjusted
EBIT to EUR 3.5 million, but the result was weakened by lower gross margin. This
was a result of sales mix, cost overruns in some project deliveries, as well as
decreased sales in Metals, Energy & Water.

In the second quarter, our order intake and sales improved significantly in
Minerals Processing, which together with earlier achieved cost savings more than
doubled the segment's adjusted EBIT margin year-on-year from 4.1% to 8.8%. In
Metals, Energy & Water, order intake, sales and adjusted EBIT declined in the
second quarter. We continue actions to make this segment profitable again. The
development in our new service organization was encouraging, with a 17% increase
in order intake during the second quarter mainly coming from growth in spare
parts and shutdown services. We will continue to further strengthen our
capabilities in serving our customers and our large installed base.

During the second half of the year, market continues to offer attractive
opportunities. The timing of large plant orders, however, is difficult to
foresee", summarizes President & CEO Markku Teräsvasara.


Summary of key
figures                   Q2      Q2             Q1-Q2   Q1-Q2             Q1-Q4

EUR million             2017    2016 %(1) %(2)    2017    2016 %(1) %(2)    2016
--------------------------------------------------------------------------------
Order intake           286.3   280.7    2   -1   604.6   450.9   34   30 1,007.7
--------------------------------------------------------------------------------
Service order intake   130.8   112.2   17   11   245.9   214.1   15    9   443.3
--------------------------------------------------------------------------------
Order backlog at end
of period            1,035.6 1,017.3    2    - 1,035.6 1,017.3    2    - 1,002.1
--------------------------------------------------------------------------------
Sales                  272.2   267.6    2   -1   540.0   507.4    6    3 1,057.9
--------------------------------------------------------------------------------
Service sales          111.0   100.2   11    7   209.7   214.3   -2   -7   447.0
--------------------------------------------------------------------------------
Gross margin, %         22.4    26.1              22.9    25.2              22.1
--------------------------------------------------------------------------------
Adjusted EBIT(3)         2.3     4.9               3.5     0.1             -23.0
--------------------------------------------------------------------------------
Adjusted EBIT(3), %      0.9     1.8               0.6     0.0              -2.2
--------------------------------------------------------------------------------
EBIT                     0.8    -0.8              -0.0   -13.0             -67.7
--------------------------------------------------------------------------------
EBIT, %                  0.3    -0.3              -0.0    -2.6              -6.4
--------------------------------------------------------------------------------
Net cash from
operating activities    -0.4   -16.1             -34.5   -49.7             -84.6
--------------------------------------------------------------------------------
Earnings per share,
EUR                    -0.02   -0.03             -0.05   -0.09             -0.42
--------------------------------------------------------------------------------
(1 )Change, %
(2 )Change in comparable currencies, %
(3 )Excluding restructuring and acquisition-related costs and PPA amortizations.


Financial guidance for 2017: revised on July 25

The guidance for 2017 is based on the current order backlog and market outlook
as well as further cost savings.

  * Sales are expected to be approximately EUR 1,100 -1,200 million, and
  * Adjusted EBIT* is expected to be approximately 3 - 4 %


Previous guidance: The guidance for 2017 is based on the current order backlog
and market outlook, as well as achieved cost savings.

  * Sales are expected to be approximately EUR 1,050 -1,150 million, and
  * Adjusted EBIT* is expected to be approximately 3 - 5%
* Excluding restructuring and acquisition-related costs, as well as purchase
price allocation amortizations.

This text is a summary of Outotec's Half year financial report 2017. The full
report is available as an attachment to this report.

FURTHER INFORMATION

Outotec Oyj

Markku Teräsvasara, CEO
Tel. +358 20 529 2000

Jari Ålgars, CFO
Tel. +358 20 529 2007

Rita Uotila, Vice President - Investor Relations
Tel. +358 20 529 2003, mobile +358 400 954 141

Format for e-mail addresses: firstname.lastname@outotec.com

BRIEFING/TELECONFERENCE

Date: July 27, 2017

Time: 2:00 PM

Venue: Outotec House, Rauhalanpuisto 9, Espoo, Finland

Joining the teleconference

To register as a participant for the teleconference and Q&A session, please dial
in 5 to 10 minutes before the beginning of the event using the numbers below.

Dial in numbers:
US: +18557161597
FI: +358 981710495
SE: +46 856642702
UK: +44 2031940552

DISTRIBUTION

Nasdaq Helsinki
Main media
www.outotec.com




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Attachments:

Outotec s Half year financial report 2017.pdf