2015-07-23 11:00:00 CEST
2015-07-23 11:00:58 CEST
BIRTINGARSKYLDAR UPPLÝSNINGAR
Metso Oyj - Interim report (Q1 and Q3)
Metso's Interim Review January 1 - June 30, 2015
Metso's Interim Review January 1 - June 30, 2015
Metso Corporation's stock exchange release on July 23, 2015 at 12:00 noon local
time
Metso will arrange a results audiocast today at 15:00 EEST (8:00 EDT, 13:00 BST,
14:00 CEST). The audiocast is viewable at www.metso.com/latestreports. A
simultaneous conference call will be arranged, allowing participants to ask
questions. You can also send your written questions during the audiocast via
chat function.
Recording of the event is available at the earliest after the event has finished
and a transcript will be available for downloading.
This is a summary of Metso's January-June 2015 Interim Review. 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 2014, unless otherwise
stated. The Process Automation Systems (PAS) business was divested on April
1, 2015, and is not included in the Flow Control segment's figures for April-
June 2015. Figures for January-June 2015 and all comparison periods prior to the
divestment include PAS. Like-for-like comparisons are made with a separate
note.
Second quarter 2015 in brief
* Demand related to customers' capital investment projects continues to be
soft, while services demand remains stable.
* Orders received EUR 823 million (EUR 947 million, or EUR 833 million
excluding PAS), of which EUR 495 million (EUR 534 million, or EUR 500
million excluding PAS) were services orders.
* Net sales EUR 756 million (EUR 962 million, or EUR 884 million excluding
PAS), of which EUR 483 million services (EUR 507 million, or EUR 477 million
excluding PAS).
* EBITA before non-recurring items EUR 94 million and 12.4% of net sales (EUR
131 million and 13.6%, or EUR 121 million and 13.7% excluding PAS).
* An initial gain on disposal of about EUR 258 million was booked from the
sale of PAS, resulting in operating profit of EUR 347 million for the
quarter (EUR 102 million).
Updated financial guidance for 2015
Our guidance for 2015 (originally published on February 5, 2015) has beenupdated. We estimate that our net sales, excluding the Process Automation
Systems business, in 2015 will be between EUR 3,000 million and EUR 3,200
million (previously between 3,000 and 3,300) and that our EBITA margin before
non-recurring items will be around 12.5 percent (12.0-13.0%), previously around
13 percent (12.5-13.5%).
The updated guidance for 2015 is based on the current market activity in our
customer industries, our current backlog and the current exchange rates.
President and CEO Matti Kähkönen:
The demand and outlook in our customer industries remained unchanged in the
second quarter compared to the first months of the year. Our like-for-like order
intake in the second quarter was one percent behind the comparison period, even
though the situation in our end markets is more challenging. This was thanks to
the few large mining equipment orders we booked during the quarter. While we are
happy having received these it should not be read as a sign of recovery.
The softening of the oil & gas market has had only slight impact on our valve
business, , primarily due to our position in specialized areas in mid and
downstream markets. In addition, the demand for pulp & paper valves and mining
pumps was good in the second quarter, which helped to mitigate the softness seen
in the oil industry.
In terms of results, Flow Control continues to perform well and shows good
margin development resulting from sales growth and cost control. Minerals still
suffers from rapidly declining volumes in the equipment business, and our right-
sizing efforts will continue there. The services business continues to prove its
resilience but we are taking more action to grow the business towards the end of
the year and beyond.
Key figures
EUR million Q2/ Q2/
2015 2014 Change % Q1-Q2/ 2015 Q1-Q2/ 2014 Change % 2014
-------------------------------------------------------------------------------
Orders received 823 947 -13 1,622 1,822 -11 3,409
-------------------------------------------------------------------------------
Orders received by
the services
business 495 534 -7 1,037 1,079 -4 2,052
-------------------------------------------------------------------------------
% of orders
received 60 56 64 59 60
-------------------------------------------------------------------------------
Order backlog at
the end of the
period 1,411 1,938 -27 1,575
-------------------------------------------------------------------------------
Net sales 756 962 -21 1,543 1,779 -13 3,658
-------------------------------------------------------------------------------
Net sales of the
services business 483 507 -5 953 945 1 2,007
-------------------------------------------------------------------------------
% of net sales 64 53 62 53 55
-------------------------------------------------------------------------------
Earnings before
interest, tax and
amortization
(EBITA) and non-
recurring items 94 131 -28 164 219 -25 460
-------------------------------------------------------------------------------
% of net sales 12.4 13.6 10.6 12.3 12.6
-------------------------------------------------------------------------------
Operating profit* 347 102 241 412 178 131 351
-------------------------------------------------------------------------------
% of net sales 45.9 10.6 26.7 10.0 9.6
-------------------------------------------------------------------------------
Earnings per share,
EUR 2.06 0.35 489 2.31 0.63 267 1.25
-------------------------------------------------------------------------------
Free cash flow 78 47 66 165 95 74 204
-------------------------------------------------------------------------------
Return on capital
employed (ROCE)
before taxes,
annualized, %** 26.2 16.6 16.4
-------------------------------------------------------------------------------
Equity-to-asset
ratio at the end of
the period, % 46.0 37.3 40.5
-------------------------------------------------------------------------------
Net gearing at the
end of the period,
% 16.6 53.4 45.6
-------------------------------------------------------------------------------
Personnel at the
end of the period 13,324 16,248 -18 15,644
-------------------------------------------------------------------------------
Figures for Q1-Q2/2015, Q2/2014, Q1-Q2/2014, and full-year 2014 include Process
Automation Systems.
*Operating profit for Q2/2015 includes an initial gain on disposal of the PAS
business.
** Roce for Q1 - Q2/2015 includes the initial gain on disposal of the PAS
business, which is not annualized
Key Figures excluding PAS
EUR million Q2/ Q2/ Change % Q1-Q2/ Q1-Q2/ Change %
2015 2014 2015 2014 2014
-------------------------------------------------------------------------------
Orders received 823 833 -1 1,560 1,625 -4 3,074
-------------------------------------------------------------------------------
Services orders, % of total 60 60 64 62 62
-------------------------------------------------------------------------------
Net sales 756 884 -15 1,489 1,644 -9 3,363
-------------------------------------------------------------------------------
Services net sales, % of 64 54 62 54 56
total
-------------------------------------------------------------------------------
Earnings before interest, tax
and amortization (EBITA) and
non-recurring items 94 121 -22 172 206 -17 426
-------------------------------------------------------------------------------
% of net sales 12.4 13.7 11.6 12.6 12.7
-------------------------------------------------------------------------------
Return on capital employed
(ROCE) before taxes,
annualized, % 17.1 -
-------------------------------------------------------------------------------
Personnel at the end of the 13,324 14,591 -9 14,072
period
-------------------------------------------------------------------------------
Market development
We expect the demand for mining equipment, products and projects to remain weak.
We expect the demand for our mining services to remain good, despite being
impacted by customers' cost savings initiatives. The demand for both aggregates
equipment and services is expected to be satisfactory. The demand for Flow
Control products related to customers' new investments is expected to be
satisfactory. The demand for Flow Control services is expected to be good.
Metso is the world's leading industrial company in the mining and aggregates
industries and in the flow control business. Our knowledge, people and solutions
help drive sustainable improvements in performance and profitability in our
customers' businesses.
Metso has an uncompromising attitude towards safety. Our products range from
mining and construction equipment and systems to industrial valves and controls.
Our solutions are delivered and supported by decades of process knowledge and a
broad scope of services backed by a global footprint of over 90 service centers,
thousands of service employees, and an extensive logistics network.
Metso is listed on the NASDAQ OMX Helsinki, Finland. In 2014, Metso's net sales
totaled EUR 3.7 billion. Metso employs approximately 14,000 industry experts in
more than 50 countries. Expect results.
www.metso.com, www.twitter.com/metsogroup
For further information, please contact:
Matti Kähkönen, President and CEO, Metso Corporation, tel. +358 20 484 3000
Harri Nikunen, CFO, Metso Corporation, tel. +358 20 484 3010
Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel.
+358 20 484 3253
Metso Corporation
Harri Nikunen
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 at:
United States: +1 646 254 3366
other countries: +44 20 3427 1903
The confirmation code for joining the conference call is 6107586.
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.
[HUG#1940771]
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