2016-07-21 08:03:07 CEST
2016-07-21 08:03:07 CEST
REGULATED INFORMATION
Metso Oyj - Half Year financial report
Metso's Interim Review January 1 - June 30, 2016
Metso's Interim Review January 1 - June 30, 2016
Metso Corporation's stock exchange release on July 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-June 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. The Process Automation Systems (PAS) business was divested on April
1, 2015. The January-June 2015 comparison numbers for Metso Group and Flow
Control including the PAS business are presented in the tables section.
Second quarter 2016 in brief
* Mining equipment orders increased 6 percent year-on-year
* Minerals services markets have stabilized; profitability of the business
remains healthy
* Valve orders in Flow Control were stable outside the North American market
* Orders received totaled EUR 761 million (EUR 823 million), of which EUR 444
million (EUR 495 million) were services orders
* Net sales totaled EUR 671 million (EUR 756 million), of which services
accounted for EUR 439 million (EUR 483 million)
* Adjusted EBITA totaled EUR 77 million, or 11.5 percent of net sales (EUR 94
million, 12.4%)
* Free cash flow totaled EUR 74 million (EUR 78 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 good for Flow Control services
From our end of June 2016 backlog, we expect to invoice about EUR 1.0 billion
during the remainder of 2016. Internal efficiency actions will continue to
improve competitiveness and mitigate the price pressure that can be seen in the
markets that are facing weak or satisfactory demand. Restructuring costs are
expected to be higher than in 2015 (on the same level as in 2015). Capital
expenditure without 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:
In the second quarter, the market activity and demand for our products and
services continued at roughly the same level seen in the first quarter. The
mining equipment market seems to have stabilized and the demand for valves
outside the North American market has held up well. We booked one large order
for mining equipment during the quarter, which improved our total order intake
sequentially. Overall, our orders received declined year-on-year, due to the
fact that the activity both in the mining services market and in the North
American oil & gas valve market softened to their current levels already during
the second half of 2015.
Our financial performance during the quarter was largely dictated by a year-on-
year decline in net sales in both segments. I'm pleased to see that our own cost
efficiency initiatives have been timely and resolute in keeping our
profitability at a good level in these circumstances. Profitability of the
mining equipment business improved compared to the first quarter, and the
profitability of the services business was at the same healthy level as in the
comparison period. Flow Control's profitability will continue to be impacted by
lower net sales in North America, which we will continue to compensate for with
cost control and by making advances in other markets.
Overall, our end markets are not expected to provide us with any significant
support in the near future, which means that we will continue to enhance our
customer service and cost efficiency and develop our operating models to make
Metso an even better company in the future.
Key figures
Q2/ Q2/ Q1-Q2/ Q1-Q2/
EUR million 2016 2015 Change % 2016 2015* Change % 2015*
-------------------------------------------------------------------------------
Orders received 761 823 -8 1,424 1,560 -9 2,965
-------------------------------------------------------------------------------
Orders received by the
services business 444 495 -10 877 1,002 -12 1,879
-------------------------------------------------------------------------------
% of orders received 58 60 62 64 63
-------------------------------------------------------------------------------
Order backlog at the
end of the period 1,399 1,411 -1 1,268
-------------------------------------------------------------------------------
Net sales 671 756 -11 1,272 1,489 -15 2,923
-------------------------------------------------------------------------------
Net sales of the
services business 439 483 -9 848 924 -8 1,840
-------------------------------------------------------------------------------
% of net sales 65 64 67 62 63
-------------------------------------------------------------------------------
Earnings before
interest, tax and
amortization (EBITA),
adjusted 77 94 -18 133 172 -23 356
-------------------------------------------------------------------------------
% of net sales 11.5 12.4 10.5 11.6 12.2
-------------------------------------------------------------------------------
Personnel at the end
of the period 12,099 13,550 -11 12,619
-------------------------------------------------------------------------------
* Comparison numbers including the divested PAS business are presented in the
tables section
Metso has adopted the ESMA European Securities and Markets Authority
guidelines on Alternative Performance Measures which were effective from July
3, 2016. Metso uses alternative performance measures to reflect the underlying
business performance and to improve comparability between financial periods.
These alternative performance measures should, however, not be considered as a
substitute for measures of performance in accordance with the IFRS. Metso
changes the previously referenced "before non-recurring items" with "adjusted
items". Adjusted items affecting comparability and alternative performance
measures used by Metso are defined in the tables section of this interim
report.
IFRS figures
EUR million Q2/ Q2/ Q1-Q2/ Q1-Q2/
2016 2015 Change % 2016 2015 Change % 2015
-------------------------------------------------------------------------------
Operating profit 70 347* -80 120 412* -71 555*
-------------------------------------------------------------------------------
% of net sales 10.3 45.9 9.4 26.7 18.7
-------------------------------------------------------------------------------
Earnings per share,
EUR 0.28 2.06** -86 0.46 2.31* -80 2.95*
-------------------------------------------------------------------------------
Free cash flow 74 78 -5 136 165 -18 341
-------------------------------------------------------------------------------
Return on capital
employed (ROCE) before
taxes, annualized, % 11.0 26.2* 25.7
-------------------------------------------------------------------------------
Equity-to-asset ratio
at the end of the
period, % 47.4 46.0 48.3
-------------------------------------------------------------------------------
Net gearing at the end
of the period, % 12.8 16.6 10.6
-------------------------------------------------------------------------------
*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
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 on:
United States: +1 646 254 3360
other countries: +44 20 3427 1913
The confirmation code for joining the conference call is 9547270
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.
[HUG#2029842]
© 2024 Nasdaq, Inc. All Rights Reserved |