2016-10-21 08:00:44 CEST
2016-10-21 08:00:44 CEST
REGULATED INFORMATION
Metso Oyj - Interim report (Q1 and Q3)
Metso's Interim Review January 1 - September 30, 2016
Metso's Interim Review January 1 - September 30, 2016
Metso Corporation's stock exchange release on October 21, 2016 at 09:00 a.m.
local time
Metso will arrange a results audiocast today at 13:00 EEST (5:00 EST, 10:00 UTC,
11:00 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 on the same
page.
This is a summary of Metso's January-September 2016 Interim Review. The 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 2015, unless otherwise
stated.
Third quarter 2016 in brief
* Minerals' equipment orders increased 19 percent while services orders
decreased 3 percent.
* Oil & gas-related valve orders weakened in the Flow Control segment.
* Orders received totaled EUR 628 million (EUR 647 million), of which EUR 422
million (EUR 436 million) were services orders.
* Net sales totaled EUR 638 million (EUR 680 million), of which services
accounted for EUR 413 million (EUR 435 million).
* Adjusted EBITA totaled EUR 77 million, or 12.1 percent of net sales (EUR 92
million, 13.6%).
* Operating profit totaled EUR 63 million, or 9.9 percent of net sales (EUR
76 million, 11.1%).
* Free cash flow was healthy at EUR 106 million (EUR 117 million).
Outlook for 2016 (changes in brackets)
Metso's overall trading conditions in 2016 will be somewhat weaker 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 has changed to satisfactory (previously: good) for Flow
Control services, with increased uncertainty in the oil & gas market.
At the end of September 2016, our backlog for the remainder of 2016 totaled
approximately EUR 680 million, but due to current market conditions we expect
some of these deliveries to be postponed into 2017. Internal efficiency actions
will continue to improve competitiveness and they will result in negative net
adjustment items of approximately EUR 30 million in 2016. Capital expenditure
excluding acquisitions is expected to be lower than in 2015. Net financial costs
are expected to be on the same level as in 2015.
President and CEO Matti Kähkönen:
Demand in the mining market in the third quarter remained at the same level
compared to the previous quarter. Activity in the capital equipment business was
stable; despite the fact that orders increased year-on-year, we do not foresee a
rapid recovery from the current low level. Mining services orders were on the
same level seen during the past 12 months. A slight improvement could be seen in
the aggregates business, where sales in some markets, such as the Nordic
countries, India and the US, have been growing this year. In Flow Control we saw
weakness in the oil & gas sector demand during the quarter. This resulted in
lower valve orders for customers' capex projects. Services orders in Flow
Control were relatively stable.
Despite challenges in the market place, we have been able to maintain our
profitability and financial position at a healthy level, thanks to internal
efficiency improvement actions that we will continue to implement during the
fourth quarter. Our EBITA margin of 12.1% was the highest seen so far this year
and our free cash flow was good at EUR 106 million.
Key figures
Q1-Q3/ Q1-Q3/
EUR million Q3/2016 Q3/2015 Change % 2016 2015* Change % 2015*
-------------------------------------------------------------------------------
Orders received 628 647 -3 2,052 2,207 -7 2,965
Orders received
by the services
business 422 436 -3 1,299 1,438 -10 1,879
% of orders
received 67 67 63 65 63
Order backlog
at the end of
the period 1,305 1,289 1 1,268
Net sales 638 680 -6 1,910 2,169 -12 2,923
Net sales of
the services
business 413 435 -5 1,261 1,359 -7 1,840
% of net
sales 65 64 66 63 63
Earnings before
interest, tax
and
amortization
(EBITA),
adjusted 77 92 -16 210 262 -20 356
% of net
sales 12.1 13.6 11.0 12.1 12.2
Personnel at
the end of the
period 11,647 12,940 -10 12,619
-------------------------------------------------------------------------------
* The Process Automation Systems (PAS) business was divested on April
1, 2015. The January-September 2015 and full-year 2015 comparison
numbers for Metso Group and Flow Control including the PAS business are
presented in the tables section.
IFRS figures
Q1-Q3/ Q1-Q3/
EUR million Q3/2016 Q3/2015 Change % 2016 2015 Change % 2015
-------------------------------------------------------------------------------
Operating profit 63 76 -17 183 488* -63 555*
% of net sales 9.9 11.1 9.6 21.9* 18.7*
Earnings per 0.24 0.29 -17 0.70 2.60* -73 2.95*
share, EUR
Free cash flow 106 117 -9 242 282 -14 341
Return on capital
employed (ROCE)
before taxes,
annualized, % 11.2 26.5* 25.7*
Equity-to-asset
ratio
at the end of the
period, % 48.1 46.4 48.3
Net gearing at 5.1 15.0 10.6
the end of the
period, %
-------------------------------------------------------------------------------
* Including a capital gain on the disposal of PAS.
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
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: +1 719 457 1036
other countries: +44 20 3043 2002
The confirmation code for joining the conference call is 2183391.
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.
[]
© 2024 Nasdaq, Inc. All Rights Reserved |