Metso's Interim Review January 1 - March 31, 2015
(Thomson Reuters ONE) -
Metso's Interim Review January 1 - March 31, 2015
Metso Corporation's stock exchange release on April 23, 2015 at 12:00 noon local
time
Metso will arrange a results audiocast on the day 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 on Tuesday, April 28, 2015,
the latest.
This is a summary of Metso's January-March 2015 Interim Review. Complete report
is attached to this release as a pdf-file and is also available at
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 included in the Flow Control segment in this report. This report
also contains pro forma information for periods of January-March 2015 and
January-March 2014, which represents the Metso Group excluding the PAS business.
First quarter 2015 in brief
* Services net sales increased 7%
* Challenging market conditions affected equipment, project and product orders
* Divestment of the Process Automation Systems (PAS) business to Valmet was
agreed on January 15, 2015 and closed on April 1, 2015
* Orders received EUR 799 million (EUR 875 million), of which EUR 542 million
(EUR 545 million) were services orders.
* Net sales EUR 787 million (EUR 817 million), of which EUR 470 million
services (EUR 438 million).
* EBITA before non-recurring items EUR 70 million, or 8.9% of net sales (EUR
88 million, 10.7%).
* Pro forma information (excluding PAS): orders received EUR 737 million (791
million), net sales EUR 732 million (756 million), EBITA before non-
recurring items EUR 78 million, 10.6% of net sales (EUR 85 million and
11.3%)
Financial guidance for 2015
Our guidance for 2015 (originally published on February 5, 2015) remains
unchanged. We estimate that our net sales, excluding the Process Automation
Systems business, in 2015 will be between EUR 3,000 million and EUR 3,300
million and that our EBITA margin before non-recurring items will be around 13
percent.
The 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 mining equipment market weakened further in the beginning of this year, and
revised investment plans in the oil & gas market have resulted in softening
project market for our valve business. The services business, however, grew in
the first quarter and is helping to offset the headwind from the equipment and
project business. Overall, we were successful in maintaining our gross margins
healthy and our performance was fairly stable in our core businesses. This gives
us confidence in meeting our full-year guidance for 2015.
During the quarter we also continued implementing our strategy by signing an
agreement to sell our Process Automation business (PAS) to Valmet for an
enterprise value of EUR 340 million. The divestment was closed on April
1, 2015, and, as a result, major strategic repositioning of Metso has now been
completed.
Key figures
EUR million Q1/ Q1/ Change % 2014
2015 2014
-------------------------------------------------------------------------------
Orders received 799 875 -9 3,409
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Orders received by the services business 542 545 -1 2,052
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% of orders received 68 62 60
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Order backlog at the end of the period 1,631 1,944 -16 1,575
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Net sales 787 817 -4 3,658
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Net sales of the services business 470 438 7 2,007
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% of net sales 60 54 55
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Earnings before interest, tax and amortization
(EBITA) and non-recurring items 70 88 -20 460
-------------------------------------------------------------------------------
% of net sales 8.9 10.7 12.6
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Operating profit 65 76 -14 351
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% of net sales 8.3 9.3 9.6
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Earnings per share, EUR 0.25 0.28 -11 1.25
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Free cash flow 87 48 81 204
-------------------------------------------------------------------------------
Return on capital employed (ROCE) before taxes,
annualized, % 12.9 14.3 16.4
-------------------------------------------------------------------------------
Equity-to-asset ratio at the end of the period, 36.6 33.6 40.5
%
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Net gearing at the end of the period, % 41.4 42.8 45.6
-------------------------------------------------------------------------------
Personnel at the end of the period 15,350 16,198 -5 15,644
-------------------------------------------------------------------------------
Market development
We expect the demand for mining equipment, products and projects to remain weak.
Due to our large installed equipment base and our stronger services presence, we
expect the demand for our mining services to remain good.
The demand for aggregates equipment is expected to be satisfactory, while the
demand for related services is expected to be good.
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 for downloading on Tuesday, April 28, 2015 the latest.
Metso interim review Q1 2015:
http://hugin.info/3017/R/1913932/683755.pdf
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Metso Corporation via GlobeNewswire
[HUG#1913932]
Unternehmensinformation / Kurzprofil:
Datum: 23.04.2015 - 11:01 Uhr
Sprache: Deutsch
News-ID 387972
Anzahl Zeichen: 10470
contact information:
Town:
Helsinki
Kategorie:
Business News
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"Metso's Interim Review January 1 - March 31, 2015"
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