In 1999, Metso's net sales decreased by 8 percent compared with the previous year and the result was poor in a weak market situation. The operating loss includes EUR 67 million in non-recurring merger and restructuring costs.
"In 1999, we implemented a number of adaptive measures and the changes required by business restructuring. We estimate that these actions and the synergic benefits of the merger will generate the annual benefits amounting to more than EUR 100 million and they are expected to be fully achieved in year 2001," says Heikki Hakala, President and CEO, Metso Corporation. "A clear improvement is expected in the Corporation's profitability already in 2000, based on the restructuring measures taken and the improved market situation."
The Corporation's gross capital expenditure, including acquisitions, amounted to EUR 237 million, or 7 percent of the Corporation's net sales. Through acquisitions and divestments Metso strengthened its strategic focus on selected process industries. The value of received new orders increased by 4 percent and the Corporation's order backlog increased by 18 percent compared with the end of 1998. Metso Corporation employed 23,274 persons at the end of 1999.
Metso Corporation's Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.40 per share be distributed.