The description of short term risks of our business operations are published in accordance with Metso's financial reports.
Updated with Interim Review Q1/2020 published on May 7, 2020
Covid-19 poses significant short-term risks and uncertainties to the markets. The spread and severity of the pandemic are difficult to predict. Abrupt measures taken by various national and local governments to restrict the spread have further increased the unpredictability of the pandemic on the demand for Metso’s products and services as well as on Metso’s operations restricting our ability to provide services at customer sites due to restrictions on mobility of people and to run our manufacturing sites when lockdowns are imposed.
There is increased risk that the pandemic will significantly deteriorate global economic growth, which together with uncertain political and trade related developments could affect our customer industries, reduce the investment appetite and spending among our customers, weaken the demand for Metso’s products and services as well as affect our business operations. There are also other market- and customer-related risks that could cause on-going projects to be postponed, delayed or discontinued.
Continued market growth and inflation as well as the impact of tariffs or other trade barriers could pose challenges to our supply chain and price management, impacting our growth capability and margins.
Exchange rate fluctuations and changes in commodity prices could affect our orders received, sales and financial position. Metso hedges currency exposure linked to firm delivery and purchase agreements.
Uncertain market conditions could adversely affect our customers’ payment behavior and increase the risk of lawsuits, claims and disputes taken against Metso in various countries related to, among other things, Metso’s products, projects and other operations.
Information security and cyber threats could disturb or disrupt Metso’s businesses and operations.