Stock exchange release
July 25, 2013 12:00 PM EEST
Good result in a challenging market environment
Metso Corporation's stock exchange release on July 25, 2013 at 12:00 a.m. local
We will arrange a news conference on Metso's January-June 2013 Interim Review
for the media, investors and analysts, in Helsinki today. The event takes place
at Metso Group Head Office, Fabianinkatu 9 A, Helsinki, Finland. A News
conference in English will be arranged at 15:00 EEST / Helsinki time (08:00 EDT
/ New York, 13:00 BST / London, 14:00 CEST / Paris). The news conference can
also be followed through a live webcast at www.metso.com/irwebcasts and a
conference call, details at the end of this release.
This is a summary of Metso's January-June 2013 Interim Review. Complete report
is attached to this release as a pdf-file and is also available at
Figures in brackets, unless otherwise stated, refer to the comparison period,
i.e. the same period last year.
Highlights of the second quarter 2013:
* New orders worth EUR 1,883 million (EUR 1,735 million) were received in
April-June, an increase of 9 percent. Orders received by the services
business across all segments were on a par with the comparison period,
amounting to EUR 806 million, i.e. 44 percent of all orders received (EUR
812 million and 48%).
* Net sales totaled EUR 1,756 million (EUR 1,897 million). Services business
net sales were comparable to those booked during the same quarter last year,
totaling EUR 780 million, and accounted for 46 percent of total net sales
(EUR 795 million and 43%).
* Earnings before interest, tax, and amortization (EBITA), and before non-
recurring items, were EUR 142 million, i.e. 8.1 percent of net sales (EUR
178 million and 9.4%).
* Earnings per share were EUR 0.34 (EUR 0.69).
* Free cash flow was EUR 20 million negative (EUR 46 million negative).
* The demerger process proceeded according to plan.
We have updated our guidance for 2013 financial performance:
Based on the current economic situation, the market outlook, our order backlog
for 2013, and foreign exchange rates remaining similar to those at the end of
June, we estimate that Metso's net sales and EBITA before non-recurring items in
2013 will be somewhat lower than those in 2012.
Previous guidance (from January-March 2013 Interim Review, published on April
23, 2013): We estimate that Metso's EBITA before non-recurring items in 2013
will be at around 2012 levels and that our net sales will be similar to that in
2012 or slightly lower.
Metso's President and CEO Matti Kähkönen comments on the second quarter:
We can be satisfied with what we achieved during the second quarter. Despite the
prevailing uncertainty of the global economy, which has continued to impact our
customer industries, we received new orders worth more than EUR 1.8 billion
during the quarter. It was positive to see Metso win another major pulp mill
order; new investments in the mining industry have continued at a lower level,
however. Our net sales declined year-on-year, primarily due to a slow-down in
some of our capital businesses. The services business has remained at a similar
level to last year, which is positive, but we are continuing our efforts to grow
volumes in this area. EBITA before non-recurring items was fairly good, with
Automation performing well, while Mining and Construction was impacted by
declining capital deliveries. Pulp, Paper and Power faced similar challenges to
those experienced during previous quarters.
We also made good progress with the demerger in the second quarter. The Board
signed a demerger plan at the end of May and will propose that shareholders
approve the demerger at an Extraordinary General Meeting in early October.
Outlining the strategies and organization of the new Metso and Valmet will keep
us busy during the next few months, and I remain confident that the demerger,
conditional on the EGM's approval of course, will be successful and will be in
the best interest of Metso and its shareholders.
Metso's key figures
EUR million Q2/ 2013 Q2/ 2012 Change % 2013 2012 Change % 2012
Orders received 1,883 1,735 9 3,467 3,655 -5 6,865
by the services
business 806 812 -1 1,679 1,693 -1 3,264
* 44 48 50 48 49
Order backlog at
the end of the
period 4,141 5,290 -22 4,515
Net sales 1,756 1,897 -7 3,346 3,652 -8 7,504
Net sales of the
business 780 795 -2 1,507 1,516 -1 3,174
net sales * 46 43 46 43 44
(EBITA) and non-
recurring items 142.2 178.2 -20 273.7 319.4 -14 687.5
net sales 8.1 9.4 8.2 8.7 9.2
Operating profit 97.0 164.7 -41 216.2 293.7 -26 601.7
net sales 5.5 8.7 6.5 8.0 8.0
share, EUR 0.34 0.69 -51 0.82 1.25 -34 2.46
Free cash flow -20 -46 57 54 70 -23 257
annualized % 13.6 19.7 19.7
ratio at the end
of the period, % 38.9 39.6 40.5
Net gearing at
the end of the
period, % 27.4 22.6 14.2
*) Excluding Valmet Automotive
Uncertainty in the global economy continued and demand in our customer
industries deteriorated somewhat during the first half of the year. Some initial
positive signs seen in the US and China have not impacted materially our
We expect demand for mining equipment to remain satisfactory. Due to our large
installed equipment base and our stronger services presence, we expect demand
for our mining services to remain good.
Demand for construction equipment and related services is projected to remain
satisfactory. Demand for our process automation systems and flow control
products and services is expected to remain good. Strong demand in the oil and
gas industry is expected to offset the continuing softness affecting the pulp
and paper industry.
The market for pulp mills and rebuilds is expected to remain satisfactory, with
good demand for services.
Structural changes in the paper industry are likely to continue and the demand
for papermaking lines is expected to remain weak, while the outlook for services
Demand for recovery boilers for pulp mills is projected to continue
satisfactory. Demand for power plants based on renewable energy sources is
expected to stay weak and that for related services to remain satisfactory.
Metso is a global supplier of technology and services to customers in the
process industries, including mining, construction, pulp and paper, power, and
oil and gas. Our 30,000 professionals based in over 50 countries contribute to
sustainability and deliver profitability to customers worldwide. Metso's shares
are listed on the NASDAQ OMX Helsinki Ltd.
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
VP, Investor Relations
Invitation to news conference for investors, analysts and media
Metso will arrange a news conference in Helsinki today, July 25, 2013 at 08:00
EDT / New York, 13:00 BST / London, 14:00 CEST / Paris, 15:00 EEST / Helsinki.
The event will take place at Metso Group Head Office, Fabianinkatu 9 A,
This conference can also be followed through a live webcast at
www.metso.com/IRwebcasts and a conference call from 3:00 p.m. local time
onwards. Questions are accepted during the event via conference call.
Due to live webcast, we kindly ask those attending to be present 5 minutes prior
to the start of the event.
Representatives of the media are also welcome to attend, requests for same day
interviews are also accepted.
Conference call details
Conference call participants are requested to dial in five minutes before the
scheduled time at:
US: +1 877 491 0064
other countries: +44 20 7162 0077
access code: 927 190
A replay of the call will be available until August 8, 2013 on the following
US: +1 954 334 0342
other countries: +44 20 7031 4064
access code: 927 190
An audio file (mp3) and a transcript of the event will be made available for
downloading at www.metso.com/IRwebcasts on Monday, July 29, 2013 the latest.
The presentation material will be available after the publication of the Interim
Review on July 25, 2013 at www.metso.com/Investors at approximately 12.00 noon
NASDAQ OMX Helsinki Ltd