Metso Oyj - Interim report (Q1 and Q3)

Metso's Interim Review January 1 - March 31, 2017

Metso's Interim Review January 1 - March 31, 2017
Metso Corporation, Stock exchange release, April 25, 2017 at 09:00 a.m. EEST

Metso will arrange a results audiocast today at 1:00 p.m. EEST. The audiocast is
viewable at www.metso.com/latestreports. A simultaneous conference call will be
arranged, allowing participants to ask questions.

This is a summary of Metso's January-March 2017 Interim Review. 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.




First-quarter 2017 in brief (compared to the first quarter of 2016)

Metso's overall trading conditions are expected to be better than in 2016
(previously: slightly better). Demand for our products and services in 2017 is
expected to develop as follows:
   ·  Market activity increased, especially in the services businesses

   ·  Orders received increased 11 percent and totaled EUR 733 million (EUR 663
million). Services orders increased 15 percent to EUR 496 million (EUR 433
million)

   ·  Sales grew 8 percent to EUR 648 million (EUR 601 million). Services sales
increased 3 percent and totaled EUR 423 million (EUR 409 million)

   ·  Adjusted EBITA improved to EUR 66.4 million, or 10.2 percent of sales (EUR
55.7 million, or 9.3%)

   ·  Free cash flow was EUR 39 million (EUR 62 million)

   ·   Balance sheet remains  strong with net  gearing at -4.7 percent (-1.8% at
the end of 2016)



Outlook for 2017 (changes in brackets)

Metso's overall trading conditions are expected to be better than in 2016
(previously: slightly better). Demand for our products and services in 2017 is
expected to develop as follows:



   ·   Remain  weak  for  mining  equipment,  while improving to good for mining
services
(previously: weak for mining equipment and satisfactory for mining services)

   ·  Remain good for aggregates equipment and services

   ·   Improve  to  good  for  Flow  Control  products related to customers' new
investments and services (previously: both were satisfactory)

At  the end of  March 2017, our backlog  for 2017 totaled approximately EUR 1.2
billion.   In  the  current  market  conditions,  we  continue  to  expect  some
postponements  to planned  delivery timetables.  Negative adjustment  items from
restructuring  programs initiated in 2016 are  expected to be EUR 10-15 million.
Capital  expenditure excluding acquisitions is  expected to increase compared to
2016, but to remain below depreciation and amortization.

President and CEO Matti Kähkönen:

We  were pleased to see the market activity in our customer industries improving
in  the first quarter. This could be seen  in an increased order intake for both
Minerals  and Flow Control compared to the first quarter of last year as well as
quarter-on-quarter.  In aggregates,  we continued  to see  good activity  in the
United  States and Europe, and other markets  recovered from the low levels seen
in  the previous years. Flow Control services saw increased activity in both oil
&  gas and pulp & paper. The mining  market has recovered gradually and we saw a
better  activity  in  the  services  business  during  the quarter. The somewhat
brighter  outlook  in  the  mining  industry  is  less  visible in the equipment
business, even though there is some optimism in discussions with customers.

Our  sales grew  8 percent during  the quarter,  which resulted largely from the
equipment  business in the Minerals segment. Higher services orders will support
sales  during the next quarters. Profitability of the Minerals segment improved,
but  was somewhat diluted by  sales mix and increased  raw material prices. Flow
Control's   performance  was  good  and  this  is  expected  to  continue  going
forward.

This  year's big  themes for  Metso are  growth and  digitalization. All  of our
businesses  have robust  plans to  accelerate organic  growth and  our financial
position  also enables us to  actively explore acquisition opportunities. During
the  first quarter, we launched the Metso  Digital Program, which is designed to
take  us to a new level in the digital capabilities required to succeed and grow
in  our  businesses.  We  focus  on  digitalization  in very practical ways, for
instance,  using the Internet-of-Things (IoT)  and analytics-based tools to help
our customers make the most of their assets and improve performance.



Key figures

EUR million                                      Q1/2017 Q1/2016 Change %   2016
--------------------------------------------------------------------------------
Orders received                                      733     663       11  2,724

Orders received by the services business             496     433       15  1,741

  % of orders received                                68      65              64

Order backlog at the end of the period             1,396   1,300        7  1,320

Sales                                                648     601        8  2,586

Sales of the services business                       423     409        3  1,703

  % of sales                                          65      68              66

Earnings before interest, tax and amortization
(EBITA), adjusted                                   66.4    55.7       19  274.0

  % of sales                                        10.2     9.3            10.6

Operating profit                                    59.4    50.4       18  227.1

  % of sales                                         9.2     8.4             8.8

Earnings per share, EUR                             0.23    0.18       28   0.87

Free cash flow                                        39      62      -37    339

Return on capital employed (ROCE) before tax,
annualized, %                                       11.1     9.4            10.4

Equity-to-asset ratio at the end of the period,
%                                                   43.7    43.9            48.0

Net gearing at the end of the period, %             -4.7     6.9            -1.8

Personnel at the end of the period                11,453  12,386       -8 11,542
--------------------------------------------------------------------------------



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 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
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

Conference call details
Conference call participants are requested to dial in five minutes before the
scheduled time on:
United States: +1 719 325 2385
other countries: +44 330 336 9105

The confirmation code for joining the conference call is 8897870.

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.




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Priedai:

Metso Interim Review Q1 2017.pdf