Valmet targets to grow with improved profitability
(Thomson Reuters ONE) -
Valmet Oyj's stock exchange release on June 21, 2016 at 3:30 p.m. EET
Valmet's Board of Directors has confirmed Valmet's strategy and higher financial
targets. The strategy is a continuation of the previous strategy, which was
reconfirmed on June 24, 2015.
Strategy
Valmet's mission is to convert renewable resources into sustainable results. The
company develops and supplies competitive process technology, services and
automation to the pulp, paper and energy industries. Valmet is committed to
moving its customers' performance forward with its unique offering.
Valmet's vision is to become the global champion in serving its customers.
Valmet seeks growth with improved profitability in pulp, paper and energy
industries.
Financial targets increased
Valmet's financial targets are the following (previous targets in brackets):
* Net sales for stable business to grow over two times the market growth (net
sales growth to exceed market growth)
* Net sales for capital business to exceed market growth (net sales growth to
exceed market growth)
* Comparable EBITA: 8-10% (6-9%)
* Comparable return on capital employed (pre-tax), ROCE: 15-20% (minimum of
15%)
* Dividend payout at least 50% of net profit (40%)
Stable business means Services and Automation business lines. Capital business
means Paper, and Pulp and Energy business lines.
Strategy implementation through Must-Win initiatives
Valmet implements its strategy through four Must-Win initiatives: customer
excellence, leader in technology and innovation, excellence in processes, and
winning team.
In customer excellence Valmet has launched its new service concept, Valmet Way
to Serve. Further it targets to grow with new customers and regions and
strengthens ongoing sales management initiatives. In leader in technology,
Valmet continues to develop leading technology and to reduce product costs.
Valmet's comprehensive industrial internet solutions and focused R&D work
enhance its technological leadership. Valmet invests in a new ERP (Enterprise
resource planning) system to support process improvements aiming at operational
excellence. Nurturing shared values and continuing globalization of its
capabilities are important factors in building winning team.
Comment from Pasi Laine, President and CEO of Valmet:
"Since the demerger, we have strengthened our offering and market position. We
have also succeeded to reach good results in our internal efficiency programs.
As a result of our actions, we reached our EBITA-margin target range in 2015 and
we have decided to set higher, more demanding financial targets.
We will continue to implement our strategy with our four Must-Win initiatives.
We are focusing on improving our customer excellence further with our new
service concept. We also continue to concentrate on process improvement, and our
ongoing ERP investment is a good example of that. We are aiming at becoming the
global champion in serving our customers," says Pasi Laine, President and CEO of
Valmet.
Further information, please contact:
Pasi Laine, President and CEO, Valmet, tel. +358 10 672 0001
Kari Saarinen, CFO, Valmet, tel. +358 10 672 0031
Valmet Capital Markets Day for institutional investors and analysts will take
place in Helsinki on Tuesday, September 20, 2016. The aim of the Capital Markets
Day is to provide information of Valmet's strategy. More information:
www.valmet.com/cmd
VALMET
Kari Saarinen
CFO
Hanna-Maria Heikkinen
VP, Investor Relations
Valmet is the leading global developer and supplier of process technologies,
automation and services for the pulp, paper and energy industries. We aim to
become the global champion in serving our customers.
Valmet's strong technology offering includes pulp mills, tissue, board and paper
production lines, as well as power plants for bioenergy production. Our advanced
services and automation solutions improve the reliability and performance of our
customers' processes and enhance the effective utilization of raw materials and
energy.
Valmet's net sales in 2015 were approximately EUR 2.9 billion. Our 12,000
professionals around the world work close to our customers and are committed to
moving our customers' performance forward - every day. Valmet's head office is
in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.
Read more www.valmet.com, www.twitter.com/valmetglobal
Follow Valmet IR in Twitter www.twitter.com/valmetir
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: Valmet via GlobeNewswire
[HUG#2022091]
Unternehmensinformation / Kurzprofil:
Datum: 21.06.2016 - 14:30 Uhr
Sprache: Deutsch
News-ID 479105
Anzahl Zeichen: 5610
contact information:
Town:
Espoo
Kategorie:
Business News
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