Metso's Interim Review January 1 - March 31, 2014
Metso Corporation's stock exchange release on April 24, 2014 at 12:00 noon local
We will arrange a news conference on Metso's January-March 2014 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 through
a conference call. Questions are accepted via conference call. Details of the
event can be found at the end of this release.
This is a summary of Metso's January-March 2014 Interim Review. Complete report
is attached to this release as a pdf-file and is also available at
Figures in brackets refer to the comparison period, i.e. the same period last
year and all figures relate to Metso's continuing operations, unless otherwise
Highlights of the first quarter of 2014
* Oil and gas continued to be strong and construction is recovering
* Demand for our services businesses picked up sequentially and that for
mining equipment and projects seems to be bottoming out
* The implementation of our profit improvement program is proceeding according
* Orders received totaled: EUR 875 million (EUR 1,031 million), of which EUR
545 million (EUR 589 million) were services orders
* Net sales totaled: EUR 817 million (EUR 915 million), of which services
accounted for EUR 438 million (EUR 466 million)
* EBITA before non-recurring expenses totaled: EUR 88 million or 10.7% of net
sales (EUR 103 million, 11.2%). Non-recurring expenses totaled EUR 7 million
(EUR 0 million).
Financial guidance for 2014
Our guidance for 2014 (published on February 6, 2014) remains unchanged. We
estimate that our net sales in 2014 will be somewhat below 2013 and that our
EBITA margin before non-recurring items for 2014 will be at around 12 percent of
The guidance is based on our current market outlook, order backlog for 2014 and
cost efficiency actions, as well as foreign exchange rates remaining similar to
those in March 2014.
President and CEO Matti Kähkönen:
"The first quarter was relatively stable in terms of market activity. We saw
continuing good demand from the oil and gas industry, which contributed to a
good level of order intake in our Automation segment. Demand for construction
equipment and services recovered from the level current at the end of 2013.
Although investments in mining equipment and projects continue to be low, demand
seems to be bottoming out, which is a positive development.
In terms of profitability, the first quarter is usually the weakest quarter of
the year for Metso. We can be satisfied that our services business gives us
useful resilience here and that cost savings have continued to compensate for
the decline in net sales."
EUR million Q1/2014 Q1/2013 Change % 2013
Orders received 875 1,031 -15 3,709
Orders received of services business 545 589 -7 2,038
% of orders received 62 57 55
Order backlog at the end of the period 1,944 2,475 -21 1,927
Net sales 817 915 -11 3,858
Net sales of services business 438 466 -6 1,976
% of net sales 54 51 51
Earnings before interests, tax and amortization
(EBITA) and non-recurring items 88 103 -15 496
% of net sales 10.7 11.2 12.8
Operating profit 76 98 -22 423
% of net sales 9.3 10.7 11.0
Earnings per share, EUR 0.28 0.38 1.59
Free cash flow 48 47 251
Return on capital employed (ROCE) before
taxes, annualized % 14.3 17.0 18.6
Return on equity (ROE), %(annualized) 14.9 18.2 19.0
Equity to asset ratio at the end of the period 33.6 32.3 36.9
Net gearing at the end of the period, % 42.8 32.7 41.6
For illustrative purposes, the balance sheet key figures for 2013 have been
restated to represent continuing operations.
We expect demand for mining equipment and projects to remain weak but stay
stable. 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 expected to be active
and similar to that seen during the first quarter and remain satisfactory.
Demand for our process automation systems is expected to remain satisfactory,
whereas demand for flow control products and related services is expected to
Metso is a leading process performance provider, with customers in the mining,
construction, and oil & gas industries. Our focus is on the continuous
development of intelligent solutions that improve sustainability and
profitability. Metso's shares are listed on the NASDAQ OMX Helsinki Ltd. Metso
employs around 16,000 professionals in 50 countries. Expect results.
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 for media, investors and analysts in
Helsinki on Thursday, April 24, 2014 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.
Conference call details
Conference call participants are requested to dial in five minutes before the
scheduled time at:
United States: +1 646 741 2120
other countries: +44 1452 541 003
access code: 934 9973
A replay of the call will be available for two weeks until May 8, 2014 on the
following phone numbers:
United States: +1 866 247 4222
other countries: +44 1452 550 000
access code: 934 9973
Recording of the event is available at www.metso.com/IRwebcasts at the earliest
after the event has finished and a transcript of the event will be available for
downloading on Monday, April 28, 2014 the latest.
The presentation material will be available at www.metso.com/investors.
NASDAQ OMX Helsinki Ltd