Outlook and disclosures
Metso publishes its outlook quarterly and provides updates on the outlook when necessary. The disclosure policy is approved by the Board of Directors and updated when necessary.
Covid-19 market update
The measures taken to prevent the spreading of Covid-19 started to have a material impact on Metso’s businesses and financial performance only towards the end of the first quarter. In February, the businesses and operations in China were affected but this impact was offset later, thanks to a fast ramp-up in March. Quarterly orders from China were higher year-on-year, while the drop in sales will take longer to catch up.
From mid-March, Metso has seen the biggest Covid-19 related impact in its aggregates equipment business, where customers and distributors have significantly reduced their investments. The mining equipment business, however, has continued in line with expectations. The importance of the mining operations for many countries has been visible in the continued healthy demand for spare and wear parts. Restrictions relating to travel and workforce mobility have had an impact on mining services by limiting service work carried out at customers’ mines.
In Neles’ businesses, volatile oil prices have had an impact on the market activity, whereas the pulp and paper market has developed as expected. Neles services business has also been hit by in the restricted access to customers’ sites, which has led to postponements of maintenance shutdowns.
Lockdowns were introduced in mid-March in several countries; the lockdown in India has had the biggest impact on Metso. As of mid-April, operations in India and South Africa have been permitted to ramp up, while lockdowns in Peru and Mexico continue.
According to its disclosure policy, Metso’s market outlook describes the expected sequential development of market activity during the following six-month period using three categories: improve, remain at the current level, or decline.
Due to the unpredictability of the Covid-19 situation, Metso will not, for the time being, estimate the development of its market activity for the six months ahead. Metso expects that market activity will continue to be affected by Covid-19 throughout the second quarter.
Previous outlook, published on February 6 and cancelled on March 31
Market activity in both segments, Flow Control and Minerals, is expected to remain at the current level in both the equipment and services business.
Metso's financial targets are:
- Sales to exceed market growth
- Adjusted EBITA-margin over 15%
- Return on Capital Employed, before taxes over 30%
Our dividend policy is to distribute at least 50% of annual earnings per share as dividend.
Metso follows the principle of equality in its investor communications and aims to give all market participants simultaneous and timely access to the information they need so that they can determine the value of the Metso shares in an informed manner.
Metso follows the rules and recommendations of the Nasdaq OMX Helsinki exchange, as well as the regulation set forth in the Finnish Companies Act and Finnish Securities Markets Act and other relevant laws and the standards of the Financial Supervision Authority (FSA) in Finland.
Disclosure policy is approved by the Board of Directors. The policy describes the main principles and practices of stock exchange communications according to which Metso communicates with its key stakeholders. The purpose of the disclosure policy is to promote the reliability and consistency of the disclosure methods used and to describe the decision-making procedures involved in disclosure.