Stock Exchange release October 30, 2002 11:14:10 AM CET
Metso's Interim Review, January 1- September 30, 2002: ORDER INTAKE CONTINUED SATISFACTORY AND GEARING DECREASED
-Metso Corporation's net sales in January-September totaled EUR 3,394 million (1-9/2001: EUR 2,906 million).
- New orders were received to the value of EUR 3,604 million (EUR 2,609 million).
- The order backlog at the end of September was EUR 1,838 million (Dec 31, 2001: EUR 1,772 million).
-Operating profit before nonrecurring items and amortization of goodwill in January-September was EUR 156.0 million (EUR 195.1 million). Operating profit was EUR 94.0 million (EUR 170.5 million).
-Earnings per share excl. nonrecurring items and amortization of goodwill were EUR 0.50 (EUR 1.06). Earnings per share were EUR 0.13 (EUR 0.83).
-In January-September Metso's net cash provided by operating activities was EUR 159 million (EUR 151 million) and in July-September EUR 107 million (EUR 17 million).
Metso's market environment continued to be uncertain in July-September, and the deliveries were at a lower level than had been expected. However, the Corporation's total order intake for the third quarter remained satisfactory.
In January-September, the value of new orders received by Metso totaled EUR 3,604 million. Metso's order backlog increased by 4 percent from the end of 2001.
Metso's net sales for January-September 2002 increased by 17 percent compared with the corresponding period in 2001. Of the Corporation's net sales, 40 percent came from the deliveries of Metso Minerals, 39 percent from Metso Paper, 13 percent from Metso Automation and 8 percent from Metso Ventures. Aftermarket services accounted for 33 percent of the Corporation's net sales.
In January-September, Metso's operating profit before nonrecurring items and amortization of goodwill represented 4.6 percent of net sales. Profitability was weakened mainly by the low delivery level.
The third quarter net cash provided by operating activities was good, EUR 107 million. Net working capital of EUR 55 million was released, particularly from Metso Minerals.
"Despite of the uncertain market situation in the third quarter, we still received orders satisfactorily. In addition, as the net cash provided by operating activities was good, our gearing ratio decreased significantly," says Tor Bergman, President and CEO of Metso Corporation.
Although Metso's market outlook is estimated to continue to be uncertain, the demand for the Corporation's products is estimated to remain at the current level. As the year's second half deliveries are concentrated in the final quarter, the fourth quarter operating profit is expected to exceed last year's corresponding period.
Metso Corporation is a global supplier of process industry machinery and systems, as well as know-how and aftermarket services. The corporation's core businesses are fiber and paper technology (Metso Paper), rock and mineral processing (Metso Minerals) and automation and control technology (Metso Automation). In 2001, the net sales of Metso Corporation were EUR 4.3 billion and the personnel totaled approximately 30,000. Metso Corporation is listed on the Helsinki and New York Stock Exchanges.
Metso Corporation's Interim Review for January - September 2002