Metso Corporation - Interim report (Q1 and Q3)

Metso's Interim Report for January-March 2024

Metso Corporation's stock exchange release on April 25, 2024, at 09:00 a.m. EEST

Figures in brackets refer to the corresponding period in 2023, unless otherwise
stated.


First quarter 2024 in brief

  · Customer activity in line with expectations; sequential improvement in
Aggregates segment and Minerals services
  · Orders received declined 8% to EUR 1,361 million (EUR 1,485 million),
services orders declined 5%
  · Sales declined 9% to EUR 1,217 million (EUR 1,334 million), services sales
increased 6%
  · Adjusted EBITA was EUR 200 million, or 16.5% of sales (EUR 211 million, or
15.8%)
  · Operating profit was EUR 188 million, or 15.4% of sales (EUR 193 million, or
14.5%)
  · Cash flow from operations increased to EUR 158 million (EUR 110 million)

President and CEO Pekka Vauramo:

The year started in line with our expectations. We saw improvements in Minerals
services and Aggregates equipment orders, while customer decision-making in the
Minerals equipment business was slow. Despite this quarter-on-quarter
improvement, the Group's orders received were 8% lower year-on-year. Key metal
prices such as that of copper have improved and hence customers continued to run
their production at high rates, supporting the Minerals services business where
orders almost achieved the same high level recorded a year ago.
Quarterly sales declined in both segments due to lower equipment order backlogs
going into the year. However, sales of Minerals services increased 8% year-on
-year, which had a positive impact on the sales mix and services accounted for
68% of the Minerals segment sales.
Overall, the profitability was supported by an improvement in gross margin,
thanks to successful cost management and overall operational performance, as
well as a higher share of services in the sales mix. I am proud to see that we
can maintain very healthy margin levels in a softer demand environment. We also
showed positive cash generation performance during the quarter, with cash flow
from operations increasing to EUR 158 million. The first-quarter results confirm
that actions to improve our financial performance have been successful, and we
are on track to meet our profitability target.
Our focused actions have resulted in resilient profitability in both segments.
The adjusted EBITA margin of 17.0% in Aggregates was only slightly lower year-on
-year, despite the decline in the segment's top line. The Minerals segment
reported the same adjusted EBITA margin of 17.5% as in the comparison period.
The negative impact of lower equipment sales in Minerals was offset by cost
savings and services sales growth.
Our safety performance faced a setback in March due to a major incident at our
rubber plant in Irapuato, Mexico. Eleven of our colleagues were injured in a
steam explosion at the site, which also resulted in property damage. The well
-being of the injured is our top priority, and the investigation of the causes
of the incident continues.
The focus areas of our sustainability work continue to be the Planet Positive
offering and innovations for our customers, our people and culture, as well as
environmental efficiency in our own operations and a responsible supply chain.
In all these we have made considerable progress, and I anticipate ongoing
achievements throughout 2024.
We expect the market activity to remain at the current level in both segments.
There is general anticipation that higher metal prices and potential interest
rate cuts could accelerate overall economic activity and demand in our
industries later in the year. Under all market conditions, we will continue to
control our costs, implement other actions to improve our profitability and cash
flow and make sure that we are offering our customers the best service possible.

Market outlook

Metso expects that the market activity in both Minerals and Aggregates will
remain at the current level.

In its previously published outlook, Metso expected that the market activity in
Minerals will remain at the current level, while the activity in Aggregates was
expected to improve.

According to the company's disclosure policy, Metso's market outlook describes
the expected sequential development of market activity during the following six
-month period using three categories: improve, remain at the current level, or
decline.

Key figures

EUR million             Q1/2024  Q1/2023  Change %    2023
Orders received           1,361    1,485        -8   5,252
Orders received by          815      855        -5   2,955
services business
% of orders received         60       58         -      56
Order backlog             2,998    3,397       -12   2,951
Sales                     1,217    1,334        -9   5,390
Sales by services           727      689         6   2,891
business
% of sales                   60       52         -      54
Adjusted EBITA              200      211        -5     887
% of sales                 16.5     15.8         -    16.5
Operating profit            188      193        -3     805
% of sales                 15.4     14.5         -    14.9
Earnings per share,        0.15     0.17       -12    0.65
continuing operations,
EUR
Cash flow from              158      110        43     550
operations
Gearing, %                 30.1     27.2         -    33.8
Personnel at end of      17,121   17,015         1  17,134
period

Audiocast and conference call details

An audiocast and a conference call for analysts and investors will be arranged
today at 12:00 p.m. EEST.

The audiocast can be followedat
the company's website (https://www.metso.com/corporate/investors/financials/inter
im-review/). A recording and a transcript will be available at the same webpage
after the event has finished.
The teleconference can be accessed by registering on the link below.

https://palvelu.flik.fi/teleconference/?id=50048706 (https://eur01.safelinks.prot
ection.outlook.com/?url=https%3A%2F%2Fpalvelu.flik.fi%2Fteleconference%2F%3Fid%3D
50048706&data=05%7C02%7Celena.ranta%40metso.com%7C42c009d1734447c08a9408dc3c58f90
f%7C5c5456f4c40240c5a73de78777e7bf9e%7C0%7C0%7C638451600050984584%7CUnknown%7CTWF
pbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7
C%7C%7C&sdata=uZ0o1fWowos%2BXASUJgZpzVOKkfOyQXAEK4w2yPNr3k0%3D&reserved=0)

The complete Interim Report for January-March 2024 is available as an attachment
to this release.

Further information, please contact:
Juha Rouhiainen, Vice President, Investor Relations, Metso Corporation,
tel. +358 20 484 3253,
email: juha.rouhiainen(a)metso.com (juha.rouhiainen@metso.com)

Distribution:

Nasdaq Helsinki Ltd

Main media

www.metso.com

Metso is a frontrunner in sustainable technologies, end-to-end solutions and
services for the aggregates, minerals processing and metals refining industries
globally. We improve our customers' energy and water efficiency, increase their
productivity, and reduce environmental risks with our product and process
expertise. We are the partner for positive change.

Headquartered in Espoo, Finland, Metso employs over 17,000 people in close to 50
countries and sales for 2023 were about EUR 5.4 billion. The company is listed
on the Nasdaq Helsinki. metso.com, x.com/metsoofficial

Attachments:

Metso Interim Report Q1 2024.pdf