Apart from this, the adjusted EBITA of our running business lagged expectations due to unfavorable mix and margin pressure in the services business. All this means that there is an urging need to focus on our delivery capability and improve our operational excellence going forward. Our new operating model is designed to support this with improved accountability and faster decision-making at our businesses.
Q3 results also saw us changing the way we comment our market outlook. We will from now on focus on the expected sequential market development with a rolling six months’ view. For both Minerals’ and Flow Control the markets are expected to remain stable.
During the week following the results announcement, Nico Delvaux met with investors and sell-side analysts in both Helsinki and London. Since these were his first investor meetings as Metso’s President and CEO, there was a lot of interest to meet him and hear his views. The most discussed topics included Nico’s first impressions on Metso, what he will bring to the company and what are the main areas where he sees future opportunities.
According to Nico, the main attractions for him in Metso were the company’s leading positions in its core businesses, global playing field and a strong services business. He thinks his background of driving profitable growth in another major global company with highly recognized services business is a good fit for Metso and he will use that experience to lead Metso to be even more successful than before. Nico mentioned in the meetings that organic growth will be a priority for Metso and that all its seven business areas have good opportunities to grow. Organic growth will be complemented by add-on acquisitions for which Metso has adequate financial firepower. Nico also wants Metso to increase its focus on innovation and R&D, and those activities will be ramped up gradually from 2018 onwards.
Discussions around these topics as well as on the market environment will continue actively, as we have, for example, visits to Paris, New York and Frankfurt on our agenda for the remainder of the year.