Stock Exchange release February 5, 2003 12:24:27 PM CET
Metso Corporation's Financial Statements 2002:EARNINGS IMPROVED AND CASH FLOW CONTINUED STRONG IN THE LAST QUARTER
- Metso's earnings per share excl. nonrecurring items and amortization of goodwill was EUR 0.99 (EUR 1.26 in 2001). Earnings per share was EUR 0.48 (EUR 1.09 in 2001).
- Metso's earnings per share for the fourth quarter of 2002 was 0.35 euro (10-12/2001: 0.26 euro).
- The Corporation's net sales totaled EUR 4,691 million (EUR 4,343 million in 2001).
- Operating profit before nonrecurring items and amortization of goodwill was EUR 251 million (EUR 270 million). The operating profit was EUR 167 million (EUR 246 million).
- New orders worth EUR 4,646 million (EUR 3,778 million) were received. The Corporation's end-of-year order backlog was EUR 1,589 million (EUR 1,772 million).
-Net cash provided by operating activities was EUR 252 million (EUR 235 million).
-Gearing at the end of the year was 80.6 percent (84.8 percent at end of 2001).
- The Board of Directors proposes to the Annual General Meeting to be convened on April 15, 2003 that a dividend of EUR 0.60 per share (EUR 0.60 per share) be distributed.
The uncertainty of the global economy was reflected in Metso's market environment and product demand throughout the year, especially in the important US and German markets. The development in the Chinese market was positive.
In 2002, Metso's net sales increased by 8 percent over the previous year. Of the net sales, 38 percent came from Metso Paper (excl. Converting Equipment group), 38 percent from Metso Minerals, 13 percent from Metso Automation and 8 percent from Metso Ventures.
The demand for aftermarket services was good and they accounted for 33 percent of Metso's net sales compared with 27 percent in the previous year. The share of aftermarket services increased to 28 percent for Metso Paper, to 42 percent for Metso Minerals and to 23 percent for Metso Automation.
In 2002 Metso received 23 percent more orders than in the comparison year 2001. The order backlog at the end of 2002 was 10 percent under the last year-end level.
Metso's operating profit was EUR 167 million, or 3.6 percent of net sales. During the year's final quarter, the profitability of both Metso Paper and Metso Minerals improved. Metso's operating profit for the whole year declined, due especially to the weakened market situation in Germany and the USA. In addition, the operating loss of Metso Panelboard, part of Metso Ventures, and of the Converting Equipment group, part of Metso Paper, as well as the integration of Metso Minerals, weakened the Corporation's profitability.
In 2002 Metso's net cash provided by operating activities was EUR 252 million. Operating cash flow continued to be good in the year's final quarter, totaling EUR 93 million.
Metso's net interest-bearing liabilities fell and gearing, the ratio of net interest-bearing liabilities to shareholders' equity, fell from 87.3 percent at the end of September to 80.6 percent at the end of December.
"Metso's market environment is expected to continue uncertain in the near future, although the paper industry's investment planning activity seems to be cautiously reviving. We are continuing work to improve profitability and to achieve our financial goals," says Tor Bergman, President and CEO of Metso Corporation.
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 2002, the net sales of Metso Corporation were EUR 4.7 billion and the personnel totaled approximately 28,500. Metso Corporation is listed on the Helsinki and New York Stock Exchanges.
The full report including tables can be downloaded from the enclosed link
ATTACHMENTS Metso Corporation's financial statements release