Metso's Financial Statements Review January 1 - December 31, 2016
(Thomson Reuters ONE) -
Metso's Financial Statements Review January 1 - December 31, 2016
Metso Corporation, Stock exchange release, February 3, 2017 at 09:00 a.m. EET
Metso will arrange a results audiocast today at 1:00 p.m. EET. The audiocast is
viewable at www.metso.com/latestreports. A simultaneous conference call will be
arranged, allowing participants to ask questions. A recording and a transcript
of the event will be available on the same page on February 6, 2017, at the
latest.
This is a summary of Metso's January-December 2016 Financial Statements 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.
Fourth-quarter 2016 in brief
· Demand for aggregates equipment improved and demand for mining services
stabilized during the quarter.
· Orders received totaled EUR 672 million (EUR 758 million), of which EUR
442 million
(EUR 441 million) were services orders.
· Sales totaled EUR 676 million (EUR 754 million), of which services
accounted for EUR 442 million (EUR 481 million).
· Adjusted EBITA totaled EUR 64 million, or 9.4 percent of sales (EUR 91
million, 12.0%). The lower EBITA resulted from lower volumes, project overrun
costs and warranty costs in Minerals, as well as from a negative impact related
to non-operative items in the Group head office.
Full-year 2016 in brief
· Market environment was challenging.
· Orders received totaled EUR 2,724 million (EUR 2,965 million), of which
EUR 1,741 million
(EUR 1,879 million) were services orders.
· Orders clearly exceeded sales and consequently the year-end backlog grew
4 percent
· Sales totaled EUR 2,586 million (EUR 2,923 million), of which services
accounted for
EUR 1,703 million (EUR 1,840 million).
· Adjusted EBITA totaled EUR 274 million, or 10.6 percent of sales (EUR 356
million, 12.2%).
· Operating profit totaled EUR 227 million, or 8.8 percent of sales (EUR
555 million, 18.7%), and was negatively impacted by net adjustment items
resulting from continued restructuring to adapt the structure and footprint to
market conditions.
· Strong free cash flow of EUR 339 million (EUR 341 million), resulting from
a release of net working capital.
· The Board of Directors proposes a dividend of EUR 1.05 per share (EUR
1.05)
Outlook for 2017
Metso's overall trading conditions are expected to be slightly better than in
2016. Demand for our products and services in 2017 is expected to develop as
follows:
· Remain weak for mining equipment and satisfactory for mining services.
· Improve to good for aggregates equipment and services (previously:
satisfactory both for equipment and services)
· Remain satisfactory for Flow Control products related to customers' new
investments and satisfactory for Flow Control services, with some positive signs
seen in the oil & gas markets in the beginning of the year.
At the end of December 2016, our backlog for 2017 totaled approximately EUR 1.2
billion. In the current market conditions, we continue to expect some
postponements to planned delivery timetables. Negative adjustment items from
restructuring programs initiated in 2016 are expected to be EUR 10-15 million.
Capital expenditure excluding acquisitions is expected to increase compared to
2016 but remain below depreciation and amortization.
President and CEO Matti Kähkönen:
Last year proved to be challenging, especially in the mining and oil & gas
markets. The demand for mining equipment was more or less in line with 2015, and
the demand for services seemed to stabilize in the last quarter. In aggregates
we saw positive development as the demand for equipment strengthened in the US,
Northern Europe, and India. The biggest change in 2016 was seen in the oil & gas
market, where customers became clearly more cautious about downstream
investments during the second half of the year.
On a positive note, our annual orders exceeded sales, and the Group's
profitability was satisfactory, despite lower sales in both Minerals and Flow
Control. In addition, we reported a strong free cash flow and our balance sheet
strengthened significantly. Though I am pleased with the cost-efficiency
measures we have carried out so far, we will continue to look after our costs
and take measures where necessary also going forward.
We proceeded with many internal actions during the year. The digitalization of
both our offering and business models is under way and good progress was made
during 2016. We implemented a new operating model in the Minerals equipment
business and made notable progress with the standardization of our products and
projects for a smoother sales-to-delivery process. We also continued to broaden
our distribution network and add new distributors in both Flow Control and
Aggregates.
Our market outlook for 2017 illustrates some optimism, as we expect the market
situation to be slightly better compared to 2016. The most prominent
improvement, which started already last year, seems to be taking place in the
aggregates business. In the mining and oil & gas markets the year has started in
a relatively positive way, but it is still too early to announce a meaningful
recovery.
Key figures
EUR million Q4/2016 Q4/2015 Change % 2016 2015* Change %
--------------------------------------------------------------------------------
Orders received 672 758 -11 2,724 2,965 -8
Orders received by the
services business 442 441 0 1,741 1,879 -7
% of orders received 66 58 64 63
Order backlog at the end
of the year 1,320 1,268 4
Sales 676 754 -10 2,586 2,923 -12
Sales of the services
business 442 481 -8 1,703 1,840 -7
% of sales 65 64 66 63
Earnings before
interest, tax and
amortization (EBITA),
adjusted 64 91 -30 274 356 -23
% of sales 9.4 12.0 10.6 12.2
Personnel at the end of
the year 11,542 12,619 -9
--------------------------------------------------------------------------------
* The Process Automation Systems (PAS) business was divested on April
1, 2015. The full-year 2015 comparison numbers for Metso Group and Flow
Control including the PAS business are presented in the tables section.
IFRS figures
EUR million Q4/2016 Q4/2015 Change % 2016 2015 Change %
-------------------------------------------------------------------------------
Operating profit 44 67 -34 227 555* -59
% of sales 6.6 8.9 8.8 18.7*
Earnings per share, EUR 0.17 0.35 -53 0.87 2.95* -71
Free cash flow 97 59 64 339 341 -1
Return on capital employed (ROCE)
before taxes, % 10.4 25.7*
Equity-to-asset ratio
at the end of the year, % 48.0 48.3
Net gearing at the end of the -1.8 10.6
year, %
-------------------------------------------------------------------------------
* Including a capital gain on the disposal of PAS
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 6,000
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 2.6 billion in 2016. Metso employs over 11,000 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
Eeva Sipilä, CFO, Metso Corporation, tel. +358 20 484 3010
Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel.
+358 20 484 3253
Metso Corporation
Eeva Sipilä
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: +1 719 457 1036
other countries: +44 (0)330 336 9105
The confirmation code for joining the conference call is 6501163.
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 Financial Statements Review 2016:
http://hugin.info/3017/R/2075772/780554.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Metso Corporation via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 03.02.2017 - 08:00 Uhr
Sprache: Deutsch
News-ID 521808
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contact information:
Town:
Helsinki
Kategorie:
Business News
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