Interim Review January-March 2019
Metso’s Interim Review for January-March 2019 was published on Thursday, April 25, 2019.
Metso’s President and CEO Pekka Vauramo and CFO Eeva Sipilä will presentede the first quarter results in an audiocast and a conference call for analysts and investors. Link for the recording is available above.
January-March 2019 in brief
- The year started with strong market activity
- Orders received increased 18% to EUR 1,013 million (859 million)’
- Sales grew 17%, totaling EUR 836 million (714 million)
- EBITA was EUR 104 million, or 12.4% of sales (85 million, or 11.9%)
- Operating profit was EUR 100 million, or 11.9% of sales (80 million, or 11.3%)
- Earnings per share improved to EUR 0.43 (0.33)
- Free cash flow was EUR 38 million (2 million)
- The divestment of the grinding media business was completed
Market activity in both segments, Minerals and Flow Control, is expected to remain at the current high level in both the equipment and services business.
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.
Previous outlook (February 6, 2019): 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:
This was my first full quarter with Metso, and I am encouraged by many things I have seen so far when visiting many customers and meeting with more than half of our people. Our employees are highly motivated and committed, with deep knowledge about our customers’ needs as well as our products and technologies. We have the local presence for providing service to our customers and the skills for adding value.
Our first quarter of 2019 was strong, with high growth and improved profitability. Our order intake was up 18% year-on-year and the growth was broad-based in both equipment and in services. Together with the healthy order growth of last year this has resulted in a solid order backlog, which we continue to deliver with better efficiency. The sales growth totaled 17% during the quarter and came from the both segments. Our profitability improved both as a result of volume growth as well as improving operational efficiency. This is despite the higher equipment sales having an impact on the sales mix and margins.
We see the market demand in our businesses to remain at the current high level. The mining equipment market looks somewhat stronger compared to the other markets we serve, thanks to the mining customers’ plans to improve productivity and add capacity. There are of course uncertainties in the world economy overall, which have so far had limited impact on our customer activity.
Going forward, we will concentrate on further developing our performance culture. I am confident that we have a significant potential to develop Metso further to deliver ’One Metso experience’ to our customers and sustainable returns to our shareholders.