Metso Corporation Financial Statements 2001: Profit improved clearly on the previous year
- Metso's earnings per share excluding nonrecurring items and amortization of goodwill were EUR 1.26 (EUR 0.91). Earnings per share were EUR 1.09 (EUR 0.90 in 2000).
- The Corporation's net sales were EUR 4,343 million (EUR 3,891 million).
- Operating profit before nonrecurring items and amortization of goodwill was EUR 270 million (EUR 197 million). Operating profit was EUR 246 million (EUR 200 million).
- Income before extraordinary items and taxes was EUR 222 million (EUR 180 million).
- New orders totaling EUR 3,778 million (EUR 4,268 million) were received. The Corporation's order backlog at the end of the year was EUR 1,772 million (EUR 1,907 million).
- The Board of Directors proposes to the Annual General Meeting scheduled for March 27, 2002 that a dividend of EUR 0.60 (EUR 0.60) be distributed.
In 2001, Metso's net sales increased by 12 percent on the previous year and operating profit before nonrecurring items and amortization of goodwill was up 37 percent. Metso Paper's net sales increased by 10 percent on the previous year and profit improved due to growth in the share of aftermarket services, more efficient project implementation and the synergy benefits achieved by the merger creating Metso. Metso Minerals' net sales increased by 63 percent on the previous year, mainly due to the Svedala acquisition completed in September, 2001. Metso Minerals' profit was affected by the market situation, the Svedala acquisition process and the intensive integration of businesses at the end of the year. However, the integration is proceeding according to plan. Metso Automation's net sales increased by 8 percent, but profitability was weakened mainly by the restructuring of North American operations, the disruption this caused to business and weak demand in the North American market.
Through the Svedala acquisition Metso expanded rock and mineral processing into another global leader, alongside fiber and paper technology, giving better balance to the corporate structure. Although the estimated EUR 70 million in annual synergy benefits arising from the merger of Metso Minerals and the acquired businesses are expected to be fully realized in 2003, about half of these benefits should be attained in 2002. The cost of acquiring the shares of Svedala was EUR 944 million. The acquisition price, including Svedala's net liabilities, was EUR 1,371 million.
In 2001, the value of new orders received by Metso was 11 percent down on the previous year. However, despite the uncertainty in the main markets in Europe and North America in the second half of the year, the intake of new orders in the last quarter was stronger than in the two preceding quarters.
"Metso's market environment is expected to remain uncertain in the coming months, particularly in North America, and no significant changes are anticipated in the European markets. As a whole, the demand for Metso's products is expected to remain at a satisfactory level in all business areas," said Tor Bergman, President and CEO of Metso Corporation.
Despite the factors of economic uncertainty, it is estimated that Metso's prospects for favorable profitability development in 2002 to be good. The estimate is based on the good order backlog, the demand outlook and several implemented and ongoing cost efficiency improvement projects. Among the most important goals for 2002 are ensuring the successful integration of Metso Minerals, improving the Corporation's profitability and increasing the share of know-how and aftermarket services in line with the Metso Future Care business concept.
Metso Corporation is a global supplier of process industry machinery and systems, as well as know-how and aftermarket and 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.
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