Financial Statements Release 2018
Metso’s Financial Statements Release 2018 was published on Wednesday, February 6, 2019
Metso’s President and CEO Pekka Vauramo and CFO Eeva Sipilä presented the financial results in an audiocast and a conference call for analysts and investors. Recording is available above.
Results in brief
October-December 2018 in brief
- Market activity continued to be healthy
- Orders received increased 38% in constant currencies
- Reported orders received increased 32% to EUR 904 million (684 million)
- Sales increased 32% in constant currencies
- Reported sales increased 27% and totaled EUR 897 million (709 million)
- Adjusted EBITA was EUR 98 million, or 10.9% of sales (64 million, or 9.1%)
- Operating profit (EBIT) was EUR 93 million, or 10.4% of sales (60 million, or 8.4%)
- Earnings per share improved to EUR 0.42 (0.08)
- Free cash flow was EUR 57 million (57 million)
- Two acquisitions were completed: one in the valves business in India and another in the UK related to pyro processing solutions in mining
- Pekka Vauramo started as President and CEO on November 1
January-December 2018 in brief
- Orders received increased 23% in constant currencies
- Reported orders received increased 17% to EUR 3,499 million (2,982 million)
- Sales increased 23% in constant currencies
- Reported sales increased 18% and totaled EUR 3,173 million (2,699 million)
- Adjusted EBITA was EUR 369 million, or 11.6% of sales (244 million, or 9.0%)
- Operating profit (EBIT) totaled EUR 351 million, or 11.1% of sales (218 million, or 8.1%)
- Earnings per share improved to EUR 1.53 (0.68)
- Free cash flow was EUR 146 million (158 million)
- Three acquisitions were completed
- Metso will transition to semi-annual dividend payments. The Board will propose a dividend of EUR 1.20 per share for 2018 (EUR 1.05), of which EUR 0.60 will be paid in May and EUR 0.60 in November 2019
Metso has changed the structure of its market outlook statement. Going forward, the market outlook will describe the expected sequential development in market activity during the following six-month period. Expected development will be described using three categories: grow, remain at the current level, or decline.
Metso’s market outlook:
Market activity in Minerals is expected to continue to grow in both equipment and services business.
Market activity in Flow Control is expected to continue to grow in both equipment and services business.
President and CEO Pekka Vauramo:
We had a strong fourth quarter. Orders received increased in both Minerals and Flow Control year-on-year and sequentially. Our top-line growth was also solid and resulted from improved delivery capability in all businesses. The sales mix continued to tilt towards higher share of equipment than services, which had an effect on our profitability. Most importantly, both our segments grew and improved their profitability year-on-year.
Since joining Metso on November 1, I have been pleased to see the positive developments throughout the company during 2018. The organizational changes made have proven to support the implementation of Metso’s profitable growth strategy, and results can be seen in strong volume growth and improved performance across all our seven business areas. I would like to thank Metso personnel who has put a lot of effort into better customer service, capitalizing on organic and inorganic growth opportunities, driving innovations and improving sustainability in our offering and operations.
Going forward, Metso has a solid position to further improve its performance. We are in a strong position to create value for customers, shareholders and other stakeholders. People, technological know-how and global presence are our most important assets and we will continue to leverage them. Working together with our customers opens new business opportunities. I am excited to be part of the Metso team and look forward to working together to start a new chapter for the company.