Half-Year Review for January-June 2018

Metso's Half-Year Review for January-June 2018 was published on Thursday, July 26, 2018.





Metso’s January-June 2018 Half-Year Review was published on Thursday, July 26, 2018.

Audiocast

Audiocast recording is available above and a transcript available for downloading from the right hand side materials section.

April-June 2018 in brief
• Healthy activity in all markets
• Orders received increased 14%, or 22% in constant currencies, to EUR 853 million (749 million)
• Services orders grew 7%, or 15% in constant currencies, to EUR 463 million (431 million)
• Sales grew 15%, or 23% in constant currencies, and totaled EUR 776 million (675 million)
• Services sales grew 10%, or 18% in constant currencies, and totaled EUR 442 million (403 million)
• Adjusted EBITA was EUR 91 million, or 11.7% of sales (70 million, or 10.4%)
• Operating profit (EBIT) up 45%, totaling EUR 86 million, or 11.1% of sales (60 million, or 8.9%)
• Earnings per share were EUR 0.38 (0.24)
• Free cash flow was EUR 21 million (4 million)

January-June 2018 in brief
• Orders received increased 16%, or 23% in constant currencies, to EUR 1,712 million (1,482 million)
• Services orders grew 8%, or 16% in constant currencies, to EUR 954 million (882 million)
• Sales grew 13%, or 20% in constant currencies, and totaled EUR 1,490 million (1,322 million)
• Services sales grew 10%, or 18% in constant currencies, and totaled EUR 864 million (786 million)
• Adjusted EBITA was EUR 176 million, or 11.8% of sales (136 million, or 10.3%)
• Operating profit (EBIT) up 40%, totaling EUR 167 million, or 11.2% of sales (119 million, or 9.0%)
• Earnings per share were EUR 0.71 (0.47)
• Free cash flow was EUR 23 million (43 million)

Market outlook

The outlook represents expected sequential market development with a rolling six-month view. Our market conditions are expected to develop as follows:
• Growth in demand to increase for Minerals equipment
• Growth in demand to remain stable for Minerals services
• Growth in demand to level off for Flow Control

Previous market outlook (published April 25, 2018)
Our market conditions are expected to develop as follows:
• Growth in demand to remain stable for Minerals equipment and services
• Growth in demand to remain stable for Flow Control equipment and services


Interim President and CEO Eeva Sipilä:

We saw continued healthy market activity across our businesses and were particularly pleased to see the project activity in the mining equipment market increase during the second quarter. The solid growth in both equipment and services is a clear indication of our strong position in our key markets. The recent increased uncertainty relating to global trade is something we are obviously watching closely. However, we currently estimate the direct impact of the tariffs enforced so far on Metso to be limited.

Going forward, we will continue to focus on operational excellence as well as on implementing Metso’s other strategic fundamentals. We are moving forward with our Digital Strategy and currently successfully piloting comminution analytics at customer sites in North America, Africa, and Australia. We are also taking R&D plans forward across our portfolio to strengthen our offering further. Also, our work on adjacent acquisitions supporting our growth strategy continues. Overall, while we have a lot of areas of further improvement ahead of us, I am encouraged by the results we have achieved during the first six months of the year.