Stock exchange release
March 30, 2010 03:00 PM EEST
Metso's Annual General Meeting, March 30, 2010: President and CEO Jorma Eloranta's review
Metso Corporation's company release, March 30, 2010 at 3:00 pm.
At Metso Corporation's Annual General Meeting starting today at 3:00 pm,
President and CEO Jorma Eloranta reports that the development of Metso's
operating environment during the first three months of the year is consistent
with the company's expectations.
"In conjunction with the publication of the financial statements on February
8, 2010, we estimated that our operating environment would remain demanding in
the first half of the year but would gradually recover. The market development
during the first months of the year supports this view: The stronger demand in
the mining industry and in power production during the fourth quarter of 2009
has continued to develop favorably. Also in the oil, gas and petrochemical
industry - important for our automation business - and in the recycling
industry, our customers' confidence in the development of the markets appears to
have strengthened. Our customers are starting to invest again."
"In the construction industry and in the pulp and paper industry the outlook has
not really changed, although the positive price development in pulp during
recent weeks creates a foundation for the gradual start up of investments also
in the pulp industry."
"All in all, positive tone in the markets has increased during the first
months," Eloranta summarizes the market situation. According to Eloranta, the
early-year development supports the full-year financial outlook presented in
conjunction with the publication of the financial statements. In its financial
statements press release on February 8, 2010, Metso estimated its net sales to
remain at about the same EUR 5 billion level as in 2009 and profitability to
remain satisfactory in 2010.
"As we have previously told, there have been price pressures in the markets
since last summer," Eloranta notes. "This is typical when demand is lower than
normal. We have been able to transfer some of the price pressures to our
component and raw materials suppliers, but not in full. We estimate the price
pressures to gradually ease as the market situation improves. We are improving
our profitability also by continuously developing our own operations."
"Winning new, profitable orders is the top priority in all our businesses this
year," Eloranta emphasizes. He points out that global megatrends - globalizing
economy, the rise of emerging economies, changing demographics and
sustainability - support the long-term profitable growth of Metso and its
customers: "The downswing in the global economy doesn't seem to have changed
Metso sees significant growth opportunities, especially in technology related to
bioenergy production. "We are already a leading global supplier of bioenergy
technology, and we have very extensive know-how in the entire process - from the
handling of biofuel and solid waste to boiler technology, environmental systems
and process automation. We are also developing next-generation solutions for
e.g. gasification, pyrolysis and heat-treatment of biomass. We are talking about
long-term development work that, according to our estimates, will yield
significant business for Metso in the years ahead."
At the beginning of the meeting, Metso's Board of Directors Chairman Jukka
Viinanen talked briefly about the succession issues at Metso's top management.
"As you can read from the Annual Report, Metso's Board has discussed successors
to Metso's top management because, in fact, within the next 12 months half of
the company's Executive Team members, Jorma Eloranta, Olli Vaartimo and Bertel
Langenskiöld, will turn 60 years old - the age of retirement in accordance with
their executive contracts. Jorma Eloranta will retire at the end of February
2011, unless otherwise agreed upon. It has been agreed with Olli Vaartimo and
Bertel Langenskiöld that they will be available until the end of June 2011. So
the management renewal process is very much under deliberation, and progress in
the matter will be communicated as new decisions are made. The goal is to ensure
as flexible transition as possible," Viinanen notes.
Metso is a global supplier of sustainable technology and services for mining,
construction, power generation, automation, recycling and the pulp and paper
industries. We have about 27,000 employees in more than 50 countries.
For further information, please contact:
Jorma Eloranta, President and CEO, Metso Group, tel. +358 20 484 3000
Further information for investors, please contact:
Johanna Henttonen, Vice President, Investor Relations, Metso Group, tel. +358
20 484 3253
It should be noted that certain statements herein which are not historical
facts, including, without limitation, those regarding expectations for general
economic development and the market situation, expectations for customer
industry profitability and investment willingness, expectations for company
growth, development and profitability and the realization of synergy benefits
and cost savings, and statements preceded by "expects," "estimates," "forecasts"
or similar expressions, are forward-looking statements. These statements are
based on current decisions and plans and currently known factors. They involve
risks and uncertainties which may cause the actual results to materially differ
from the results currently expected by the company.
Such factors include, but are not limited to:
(1) general economic conditions, including fluctuations in exchange rates and
interest levels which influence the operating environment and profitability of
customers and thereby the orders received by the company and their margins
(2) the competitive situation, especially significant technological solutions
developed by competitors
(3) the company's own operating conditions, such as the success of production,
product development and project management and their continuous development and
(4) the success of pending and future acquisitions and restructuring.
Executive Vice President and CFO
Vice President, Group Communications
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