Metso's Interim Review January 1 - March 31, 2016
(Thomson Reuters ONE) -
Metso's Interim Review January 1 - March 31, 2016
Metso Corporation's stock exchange release on April 22, 2016 at 09:00 a.m. local
time
Metso will arrange a results audiocast today at 13:00 EET (6:00 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.
This is a summary of Metso's January-March 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 comparison numbers for Metso Group and Flow Control including the
PAS business can be found in the tables section.
First quarter 2016 in brief
* Challenging market conditions had a negative impact on the demand for
services in the mining and aggregates industry as well as on the demand for
valves sold to the oil & gas transportation segment in North America.
* Orders for aggregates equipment increased and those for mining equipment
were at the same level compared to the first quarter of 2015.
* Orders received totaled EUR 663 million (EUR 737 million), of which EUR 433
million (EUR 507 million) were services orders.
* Net sales were EUR 601 million (EUR 733 million), of which EUR 409 million
for services (EUR 441 million). The decline was mainly due to a slowdown in
project deliveries
* Adjusted EBITA totaled EUR 56 million, or 9.3% of net sales (EUR 78 million,
10.6%). The profitability of the services business remained healthy as
expected, whereas profitability of the mining equipment business was weak.
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 March, 2016 backlog we expect to invoice EUR 1.1 billion during
2016. Internal efficiency actions will continue to improve competitiveness and
mitigate the price pressure that can be seen in markets that are facing weak or
satisfactory demand. Restructuring costs are expected to be on the same level as
in 2015 (previously: lower than in 2015). Capital expenditure without
acquisitions and net financial costs are expected to be lower than in 2015
(previously: at the same level as in 2015).
President and CEO Matti Kähkönen:
Orders and net sales were at a low level in the project businesses during the
first quarter, as uncertainties in the markets tend to slow down both the
decision-making relating to new orders and the execution of ongoing projects.
This is most visible in the mining business and to some extent also in the oil &
gas-related valve business in North America. In addition, the low order volume
for capex driven engineered services in particular resulted in a slow start for
mining services in the first quarter. Positive development was seen in the
aggregates business, where equipment orders grew in India and some other
regions.
Despite the challenges with volumes in the equipment businesses, our
profitability remains at a satisfactory level, thanks to the services business
and overall cost control. Services net sales have been somewhat impacted by our
customers' cost cutting, which we have offset with internal initiatives;
profitability of the services business in both Minerals and Flow Control
improved in the first quarter. Going forward, we do not foresee any significant
changes in the activity of our end-markets and our focus continues to be on
developing our cost competitiveness and our product and services offering to
help our customers to improve their productivity.
Key figures
EUR million Q1/ Q1/
2016 2015* Change % 2015*
-------------------------------------------------------------------------------
Orders received 663 737 -10 2,965
-------------------------------------------------------------------------------
Orders received by the
services business 433 507 -15 1,879
-------------------------------------------------------------------------------
% of orders received 65 69 63
-------------------------------------------------------------------------------
Order backlog at the end of
the period 1,300 1,445 -10 1,268
-------------------------------------------------------------------------------
Net sales 601 733 -18 2,923
-------------------------------------------------------------------------------
Net sales of the services
business 409 441 -7 1,840
-------------------------------------------------------------------------------
% of net sales 68 60 63
-------------------------------------------------------------------------------
Earnings before interest, tax
and amortization (EBITA),
adjusted 56 78 -28 356
-------------------------------------------------------------------------------
% of net sales 9.3 10.6 12.2
-------------------------------------------------------------------------------
Personnel at the end of the
period 12,386 14,015 -12 12,619
-------------------------------------------------------------------------------
*Comparison numbers including the divested PAS business can be found in the
tables section of the interim review
Q1/ Q1/
2016 2015 Change % 2015
-------------------------------------------------------------------------------
Operating profit 50 65 -23 555
-------------------------------------------------------------------------------
% of net sales 8.4 8.3 18.7
-------------------------------------------------------------------------------
Earnings per share, EUR 0.18 0.25 -28 2.95
-------------------------------------------------------------------------------
Free cash flow 62 87 -29 341
-------------------------------------------------------------------------------
Return on capital employed
(ROCE) before taxes,
annualized, % 9.4 12.9 25.7
-------------------------------------------------------------------------------
Equity-to-asset ratio at the
end of the period, % 43.9 36.6 48.3
-------------------------------------------------------------------------------
Net gearing at the end of the
period, % 6.9 41.4 10.6
-------------------------------------------------------------------------------
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: +1 212 444 0481
other countries: +44 (0)20 3427 1905
The confirmation code for joining the conference call is 7546996
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.
Metso Interim Review Q1 2016:
http://hugin.info/3017/R/2005844/741022.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Metso Corporation via GlobeNewswire
[HUG#2005844]
Unternehmensinformation / Kurzprofil:
Datum: 22.04.2016 - 08:01 Uhr
Sprache: Deutsch
News-ID 465822
Anzahl Zeichen: 11227
contact information:
Town:
Helsinki
Kategorie:
Business News
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"Metso's Interim Review January 1 - March 31, 2016"
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