Metso Corporation, Stock exchange release, October 20, 2017 at 09:00 a.m. EEST
Metso will arrange a results audio cast today
at 1:00 p.m. EEST
. The audio cast is viewable at
www.metso.com/latestreports
. The event will feature a simultaneous conference call allowing participants to ask questions. Details of the call are available at the end of this release.
This is a summary of Metso 's Interim Review January 1 -September 30, 2017. The complete report is attached to this release and is also available at www.metso.com/latestreports .
Figures in brackets refer to the corresponding period in 2016, unless otherwise stated.
Third-quarter 2017 in brief (compared to the third quarter of 2016)
January-September 2017 in brief (compared to corresponding period of 2016)
Metso has changed the way it comments on its market outlook. Going forward, our commentary will focus on the expected sequential market development with a rolling six months' view on the segment level (Minerals and Flow Control).
Our market conditions are expected to develop as follows:
President and CEO Nico Delvaux
Our order intake was good in the third quarter, growing 30 percent year-on-year. Even when excluding the large mining equipment order booked during the quarter, we saw a healthy order increase across our businesses, which is reflective of the current market situation. However, our performance during the quarter was clearly not satisfactory. Especially disappointing was that we needed to book 33 million euros for cost overruns and write-downs related to mining projects in the backlog. Going forward, we will need to focus on our delivery capability and improve our operational excellence.
Since I took over as President and CEO in the beginning of August, we have been making some changes to our organization and to the way we operate. Our aim is to improve the accountability of our businesses and to speed up decision-making, the implementation of our growth plans, and our response to market changes. I am convinced that these changes will help us to get the most out of the improved market conditions and deliver profitable growth going forward.
Key figures
EUR million | Q3/2017 | Q3/2016 | Change % |
Q1-Q3/
2017 |
Q1-Q3/
2016 | Change % | 2016 | |
Orders received | 817 | 628 | 30 | 2,298 | 2,052 | 12 | 2,724 | |
Orders received by the services business | 486 | 422 | 15 | 1,462 | 1,299 | 13 | 1,741 | |
% of orders received | 59 | 67 | 64 | 63 | 64 | |||
Order backlog at the end of the period | 1,491 | 1,305 | 14 | 1,320 | ||||
Sales | 673 | 638 | 5 | 1,996 | 1,910 | 5 | 2,586 | |
Sales of the services business | 440 | 413 | 7 | 1,308 | 1,261 | 4 | 1,703 | |
% of sales | 65 | 65 | 66 | 66 | 66 | |||
Earnings before interest, tax and amortization
(EBITA), adjusted | 43.0 | 77.2 | -44 | 179.4 | 210.2 | -15 | 274.0 | |
% of sales | 6.4 | 12.1 | 9.0 | 11.0 | 10.6 | |||
Operating profit (EBIT) | 39.4 | 62.9 | -37 | 158.6 | 182.6 | -13 | 227.1 | |
% of sales | 5.9 | 9.9 | 7.9 | 9.6 | 8.8 | |||
Earnings per share, EUR | 0.13 | 0.24 | -46 | 0.60 | 0.70 | -14 | 0.87 | |
Free cash flow | 58 | 106 | -45 | 101 | 242 | -58 | 339 | |
Return on capital employed (ROCE) before tax, annualized, % | 9.8 | 11.2 | 10.4 | |||||
Equity-to-assets ratio at the end of the period, % | 45.3 | 48.1 | 48.0 | |||||
Net gearing at the end of the period, % | 3.8 | 5.1 | -1.8 | |||||
Personnel at the end of the period | 11,698 | 11,647 | 11,542 |
Conference call details
Conference call participants are requested to dial in five minutes before the event begins on:
United States: +1 719 457 1036
other countries: +44 330 336 9105
The confirmation code for joining the conference call is 2236457.
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 on Monday, October 23 at the latest.
For further information, please contact:
Nico Delvaux, 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
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 sales of about EUR 2.6 billion in 2016. Metso employs over 11,000 people in more than 50 countries. Expect results.