2017-07-27 13:20:32 CEST
2017-07-27 13:20:32 CEST
REGLAMENTUOJAMA INFORMACIJA
Valmet Corporation - Half Year financial report
Valmet's Half Year Financial Review January 1 - June 30, 2017: Orders received increased - profitability at the previous year's level
Valmet Oyj's stock exchange release on July 27, 2017 at 2:20 p.m. EET
Figures in brackets, unless otherwise stated, refer to the comparison period,
i.e. the same period of the previous year.
April-June 2017: Orders received more than doubled in the Paper business line
* Orders received increased to EUR 796 million (EUR 692 million).
* Orders received increased in the Paper and Automation business lines,
remained at the previous year's level in the Services business line and
decreased in the Pulp and Energy business line.
* Orders received increased in China and South America, remained at the
previous year's level in Asia-Pacific and EMEA (Europe, Middle East and
Africa), and decreased in North America.
* Net sales remained at the previous year's level at EUR 803 million (EUR 804
million).
* Net sales increased in the Paper business line, remained at the previous
year's level in the Automation and Services business lines, and
decreased in the Pulp and Energy business line.
* Comparable earnings before interest, taxes and amortization (Comparable
EBITA) were EUR 57 million (EUR 57 million) and the corresponding Comparable
EBITA margin was 7.1 percent (7.1%).
* Earnings per share were EUR 0.22 (EUR 0.21).
* Items affecting comparability amounted to EUR -1 million (EUR -1 million).
* Cash flow provided by operating activities was EUR 31 million (EUR 33
million).
January-June 2017: Orders received increased more than 20 percent
* Orders received increased to EUR 1,802 million (EUR 1,495 million).
* Orders received increased in the Paper, Automation and Services business
lines and remained at the previous year's level in the Pulp and Energy
business line.
* Orders received increased in China, Asia-Pacific, North America and EMEA
and decreased in South America.
* Net sales remained at the previous year's level at EUR 1,475 million (EUR
1,456 million).
* Net sales increased in the Paper business line and remained at the
previous year's level in the other business lines.
* Comparable earnings before interest, taxes and amortization (Comparable
EBITA) were EUR 91 million (EUR 88 million), and the corresponding
Comparable EBITA margin was 6.2 percent (6.1%).
* Earnings per share were EUR 0.34 (EUR 0.28).
* Items affecting comparability amounted to EUR 2 million (EUR -3 million).
* Cash flow provided by operating activities was EUR 125 million (EUR 36
million).
Valmet reiterates its guidance for 2017
Valmet reiterates its guidance presented on April 12, 2017, in which Valmet
estimates that net sales in 2017 will increase in comparison with 2016 (EUR
2,926 million) and Comparable EBITA in 2017 will increase in comparison with
2016 (EUR 196 million).
Short-term outlook
General economic outlook
The mood in the global economy has brightened during the past year, with
confidence indicators and industrial production increasing, and investment and
trade improving in most economies. Global growth is projected to rise modestly
from 3 percent in 2016 to just over 3.5 percent by 2018. However, financial
stability risks persist and could affect the modest recovery. Geopolitical
shocks and trade protectionism could catalyze snap-backs in asset prices and
realize downside risks through a variety of channels. Current market
expectations imply a rising divergence in short-term interest rates between the
major advanced economies in the coming years. This creates risk of sharp
exchange rate movements, or other instabilities in financial markets. (OECD
Economic Outlook, June 7, 2017)
Short-term market outlook
Valmet reiterates the good short-term market outlook for services, energy, board
and paper, and tissue, the satisfactory short-term market outlook for automation
and the weak short-term market outlook for pulp.
President and CEO Pasi Laine: High customer activity continued and orders
received increased
"The first six months of 2017 were characterized by high market activity, and
since the beginning of the year, Valmet was able to increase its orders received
over 20 percent. In the capital business, the tissue, board and paper, and
energy markets have been active. Orders received in the Paper business line
increased almost 90 percent during the first half of the year, while the orders
in the Pulp and Energy business line remained at the previous year's level. In
the stable business, orders received in the Automation business line increased
10 percent and the order growth in the Services business line was 7 percent.
Despite the success in orders, we need to continue to focus on improving
profitability. Comparable EBITA margin in the second quarter remained at the
previous year's level at 7.1 percent, and for the last 12 months we now stand at
6.8 percent. There is still some way to go to reach our long-term margin target
of 8-10 percent. It is an ambitious target, but I strongly believe we can get
there.
In June, we launched our new Industrial Internet offering. With our new offering
of reliability and performance services, and by opening a Performance Center for
each of our four customer industries, we are taking our Industrial Internet
services to the next level. Valmet is the leading process technology, automation
and services provider for the pulp, paper and energy industries globally, and
our Industrial Internet applications and services are built on the experience
and know-how we have gained from this unique offering over the years."
Key figures(1)
Q2/2017 Q2/2016 Change Q1-Q2/ Q1-Q2/ Change
EUR million 2017 2016
-------------------------------------------------------------------------------
Orders received 796 692 15% 1,802 1,495 21%
Order backlog(2) 2,551 2,106 21% 2,551 2,106 21%
Net sales 803 804 0% 1,475 1,456 1%
Comparable earnings before
interest, taxes and amortization 57 57 0% 91 88 4%
(Comparable EBITA)
% of net sales 7.1% 7.1% 6.2% 6.1%
Earnings before interest, taxes 56 55 1% 93 85 9%
and amortization (EBITA)
% of net sales 6.9% 6.9% 6.3% 5.8%
Operating profit (EBIT) 48 47 2% 77 66 17%
% of net sales 6.0% 5.8% 5.2% 4.5%
Profit before taxes 45 44 3% 72 60 19%
Profit / loss 33 31 7% 52 43 21%
Earnings per share, EUR 0.22 0.21 8% 0.34 0.28 22%
Earnings per share, diluted, EUR 0.22 0.21 8% 0.34 0.28 22%
Equity per share, EUR 5.82 5.58 4% 5.82 5.58 4%
Cash flow provided by operating 31 33 -7% 125 36 >100%
activities
Cash flow after investments 15 16 -4% 95 8 >100%
Return on equity (ROE) 12% 10%
(annualized)
Return on capital employed (ROCE) 13% 11%
before taxes (annualized)
(1) The calculation of key figures is presented on page 38.
(2 )At the end of period.
Equity to assets ratio and As at As at June 30, As at March 31, 2017
gearing June 30, 2017 2016
-------------------------------------------------------------------------------
Equity to assets ratio at 38% 36% 37%
end of period
Gearing at end of period 4% 27% -3%
Q2/2017 Q2/2016 Change Q1-Q2/ Q1-Q2/ Change
Orders received, EUR million 2017 2016
-------------------------------------------------------------------------
Services 321 321 0% 676 634 7%
Automation 91 82 12% 163 148 10%
Pulp and Energy 141 180 -22% 406 417 -3%
Paper 243 109 >100% 557 295 88%
-------------------------------------------------------------------------
Total 796 692 15% 1,802 1,495 21%
-------------------------------------------------------------------------
As at As at Change As at
June 30, 2017 June 30, 2016 March 31,
Order backlog, EUR million 2017
------------------------------------------------------------------------
Total 2,551 2,106 21% 2,613
------------------------------------------------------------------------
Q2/2017 Q2/2016 Change Q1-Q2/ Q1-Q2/ Change
Net sales, EUR million 2017 2016
-------------------------------------------------------------------
Services 302 304 -1% 554 561 -1%
Automation 73 73 -1% 132 131 1%
Pulp and Energy 245 262 -7% 449 443 1%
Paper 184 165 12% 340 321 6%
-------------------------------------------------------------------
Total 803 804 0% 1,475 1,456 1%
-------------------------------------------------------------------
News conference and webcast for analysts, investors and media
Valmet will arrange a news conference in English for analysts, investors, and
media on Thursday, July 27, 2017 at 4:00 p.m. Finnish time (EET). The news
conference will be held at Valmet Head Office in Keilaniemi, Keilasatama
5, 02150 Espoo, Finland. The news conference can also be followed through a live
webcast at www.valmet.com/webcasts.
It is also possible to take part in the news conference through a conference
call. Conference call participants are requested to dial in at least five
minutes prior to the start of the conference, at 3:55 p.m. (EET), at
+44 1452 560304. The participants will be asked to provide the following
conference ID: 50508494.
During the webcast and the conference call, all questions should be presented in
English. After the webcast and the conference call, media has a possibility to
interview the management in Finnish.
The event can also be followed on Twitter at www.twitter.com/valmetir.
Further information, please contact:
Calle Loikkanen, Director, Investor Relations, Valmet, tel. +358 10 672 0020
Kari Saarinen, CFO, Valmet, tel. +358 10 672 9603
VALMET
Kari Saarinen
CFO
Calle Loikkanen
Director, Investor Relations
Valmet is the leading global developer and supplier of process technologies,
automation and services for the pulp, paper and energy industries. We aim to
become the global champion in serving our customers.
Valmet's strong technology offering includes pulp mills, tissue, board and paper
production lines, as well as power plants for bioenergy production. Our advanced
services and automation solutions improve the reliability and performance of our
customers' processes and enhance the effective utilization of raw materials and
energy.
Valmet's net sales in 2016 were approximately EUR 2.9 billion. Our 12,000
professionals around the world work close to our customers and are committed to
moving our customers' performance forward - every day. Valmet's head office is
in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.
Read more www.valmet.com, www.twitter.com/valmetglobal
Follow Valmet IR on Twitter www.twitter.com/valmetir
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