Stock Exchange release April 21, 2009 01:15:00 PM CET
Metso's nonrecurring expenses related to the adjustment measures
Metso Corporation's stock exchange release on April 21, 2009 at 2.15 p.m.
Metso has made decisions on adjustment measures in many of its units during the early part of the year. In the first quarter, Metso plans to recognize in its operating profit about EUR 22 million of nonrecurring expenses related to these adjustment measures. Almost EUR 17 million of the expenses relate to Paper and Fiber Technology, close to EUR 2 million to Energy and Environmental Technology and close to EUR 4 million to Mining and Construction Technology. The nonrecurring expenses derive mainly from the permanent personnel reductions of about 1,800 employees and closure of units, decisions that Metso had taken in its various units since the beginning of this year. About one-half of the personnel reductions involve Metso operations in Finland.
With these measures Metso estimates to achieve annual savings of about EUR 90 million, of which about EUR 40 million is estimated to be realized in 2009. In addition, Metso estimates that the savings from the temporary layoffs implemented in Finland this year will amount to about EUR 25-30 million.
Metso's Interim Review for January - March 2009 will be published on Tuesday April 28, 2009 at about 12:00 p.m. Finnish time/EEST (10:00 a.m. BST, 11:00 a.m. CEST).
Metso is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. We have over 29,000 employees in more than 50 countries. www.metso.com
Further information for investors, please contact:
Johanna Sintonen, Vice President, Investor Relations, Metso Corporation, tel. +358 20 484 3253
It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for customer industry profitability and investment willingness, expectations for company growth, development and profitability and the realization of synergy benefits and cost savings, and statements preceded by "expects", "estimates", "forecasts" or similar expressions, are forward-looking statements. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by the company.
Such factors include, but are not limited to:
(1) general economic conditions, including fluctuations in exchange rates and interest levels which influence the operating environment and profitability of customers and thereby the orders received by the company and their margins
(2) the competitive situation, especially significant technological solutions developed by competitors
(3) the company's own operating conditions, such as the success of production, product development and project management and their continuous development and improvement
(4) the success of pending and future acquisitions and restructuring.
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