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Short-term outlook history 2006

This is the short-term outlook from Metso's 2006 Financial Statement published on February 7, 2007.

The overall market situation for Metso is expected to remain favorable in 2007.

The overall market outlook for Metso Paper is expected to be satisfactory in 2007. The demand for new fiber and tissue lines as well as related rebuilds and aftermarket services is expected to slightly soften from the good level in 2006, except for South America and Asia where the markets for new fiber lines are expected to remain good.

The demand for new paper and board machines, as well as rebuilds and aftermarket services is expected to remain satisfactory also in 2007. The strong demand is expected to continue in Asia. The demand for power production solutions, especially related to biomass utilization, is expected to remain excellent.

Metso Minerals’ markets for both new equipment and aftermarket services are expected to remain excellent in mining and metal recycling. In the mining industry, the trend is towards large equipment and projects. The demand for Metso Minerals’ new equipment for the construction industry is expected to soften from excellent to good in 2007. This is mainly due to the leveling-off of North American aggregates demand. On the other hand, the demand for aftermarket services within construction segment is expected to continue excellent thanks to the active spare and wear part markets for the installed base.

The demand for Metso Automation’s process automation systems for the pulp and paper industry is estimated to get slightly stronger. The demand for flow control systems is expected to continue good in the pulp and paper industry and excellent in the power, oil and gas industry. The markets for process automation systems in the power industry are expected to continue to be good.

Thanks to the strong order backlog, continuing favorable market situation and the expanded business scope, Metso’s net sales in 2007 are estimated to grow by more than 20 percent on 2006, and the operating profit is estimated to clearly improve. At present, it is estimated that the operating profit margin in 2007 will be slightly below Metso’ is over 10 percent target. This is primarily due to the high first-year amortization of intangible assets, integration costs and only partially materializing synergy benefits related to the acquisition of the Pulping and Power businesses.

The estimates concerning Metso’s net sales and operating profit do not include changes resulting from any future acquisitions or divestitures.


This is the short-term outlook from Metso's 2006 July-September interim report published on October 25, 2006.

No significant changes have occurred in Metso’s market outlook. The favorable market situation is expected to continue in the construction, mining and energy industries also in the final quarter of the year. The overall pulp and paper industry demand is expected to remain satisfactory.

Of Metso Paper’s products, the market outlook for new paper and board machines is the strongest in Asia, where several customers are actively considering new investments. In Europe and in North America, the demand for rebuilds and aftermarket services is expected to remain at the current level. The markets for both new tissue machines and tissue machine rebuilds are expected to be good. The markets for new fiber lines are expected to remain brisk in South America and good in Asia.

The demand for Metso Minerals’ construction equipment and related services is expected to remain good thanks to road network development projects and other infrastructure investments. The demand for mining industry and metal recycling equipment is expected to remain strong. The large mining companies are continuing to plan and implement extensive investments. In the mining industry the trend is towards larger equipment and projects.

Metso Automation’s market situation is expected to remain good in the energy, oil and gas industry and satisfactory in the pulp and paper industry. Based on the strong order backlog and the favorable market outlook, it is estimated that Metso’s good financial performance will continue also for the rest of the year. Metso’s net sales are estimated to grow by clearly more than 10 percent in 2006. Continued favorable market situation, strong order backlog and ongoing internal development projects give a positive outlook for Metso’s financial performance in 2007.

The estimates concerning Metso’s net sales and operating profit do not include any changes resulting from acquisitions or divestitures.


This is the short-term outlook from Metso's 2006 April-June interim report published on July 27, 2006.

No change has occurred in Metso’s market outlook during the first half-year. The favorable market situation is expected to continue in the civil engineering, mining and energy industries in 2006. The overall pulp and paper industry demand is expected to remain at least as satisfactory as in 2005.

Of Metso Paper’s products, the market outlook for new paper and board machines is the strongest in Asia. In Europe and in North America, demand for rebuilds is expected to level out. The markets for both new tissue machines and tissue machine rebuilds are expected to be good. The markets for new fiber lines are expected to remain brisk in South America and good in Asia.

The demand for Metso Minerals’ equipment related to aggregates production is expected to remain good in the construction and civil engineering sector, due to road network development projects and other infrastructure investments. The demand for mining industry and metal recycling equipment is expected to remain strong. The large mining companies are continuing to plan and implement extensive investments. In mining and aggregates production the trend is towards larger equipment and projects.

Metso Automation’s market situation is expected to remain good in the energy, oil and gas industry and satisfactory in the pulp and paper industry. Based on the strong order backlog and the favorable market outlook, it is estimated that Metso’s good financial performance will continue also during the second half of the year, and the operating profit will clearly exceed the operating profit in 2005. Metso’s net sales are estimated to grow by clearly more than 10 percent in 2006.

The estimates concerning Metso’s net sales and operating profit do not include any changes resulting from acquisitions or divestitures.


This is the short-term outlook from Metso's 2006 January-March interim report published on April 28, 2006.

The favorable market situation is expected to continue in the civil engineering, mining and energy industries in 2006. Pulp and paper industry demand is expected to remain at least as satisfactory as in 2005.

Of Metso Paper's products, the market prospects for new paper and board machines are the strongest in Asia. In Europe, demand will be focused on rebuilds of small and medium-size machines. In North America, while some rebuild projects are pending, the uncertainty prevailing in the sector is postponing decision-making. The markets for both new tissue machines and tissue machine rebuilds are good. The markets for new fiber lines are expected to remain active in South America and good in Asia.

The demand for Metso Minerals' equipment related to aggregates production is expected to remain good in the construction and civil engineering sector, due to road network development projects and other infrastructure investments. The demand for mining industry and metal recycling equipment is expected to remain strong. The large mining companies are continuing to plan and implement extensive investments.

Metso Automation's market situation is expected to remain good in the energy, oil and gas industry and satisfactory in the pulp and paper industry. It is estimated that in 2006 Metso Corporation's net sales will grow by over 10 percent and operating profit will clearly surpass the operating profit in 2005.

The estimates concerning Metso’s net sales and operating profit do not include any changes resulting from acquisitions or divestitures, and they are based on the current order backlog and market outlook.