Interim Review for January-March 2018
Metso's Interim Review for January-March 2018 was published on Wednesday, April 25, 2018
Metso’s January-March 2018 Interim Review was published on Wednesday, April 25, 2018.
Metso’s Interim President and CEO Eeva Sipilä will present the financial results in a webcast and a conference call for analysts and investors today at 13:00 EEST.
Conference call participants are requested to dial in five minutes before the event on: United States: +1 646 828 8374 other countries: +44 (0)330 336 9104
The confirmation code for joining the conference call is 111643. Metso will not arrange separate event for investors, analysts or the media at its headquarters on the day of the publication.
Note: Figures relating to the first quarter and full-year 2017 have been restated, according to the adoption of IFRS 15 standard and the revision of the Flow Control segment's services business. Restated figures were published on April 16, 2018 as a stock exchange release.
First quarter 2018 in brief
- Market activity continued at a healthy level
- Orders received increased 17%, or 27% in constant currencies, and totaled EUR 859 million (733 million)
- Services orders increased 9%, or 18% in constant currencies, and totaled EUR 490 million (451 million)
- Sales increased 10%, or 19% in constant currencies, to EUR 714 million (647 million)
- Services sales increased 10%, or 19% in constant currencies, and totaled EUR 422 million (383 million)
- Adjusted EBITA was EUR 85 million, or 11.9% of sales (66 million, or 10.2%)
- Operating profit (EBIT) totaled EUR 80 million, or 11.3% of sales (59 million, or 9.2%)
- Earnings per share were EUR 0.33 (0.23)
- Free cash flow was EUR 2 million (39 million)
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 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 were pleased to see positive development on several fronts during the first quarter. All our businesses reported strong growth in orders, which resulted in a 17% increase in total orders received compared to the first quarter last year. This growth was supported by the continued healthy market activity in all our customer industries. The strong order growth was also partly attributable to timing, as some of the orders expected in the previous quarter were delayed to the first quarter.
Sales growth and faster than expected progress in improving earlier internal issues had a positive impact on our profitability. We have been working intensively on the internal operational issues that affected our performance in late 2017 and I am encouraged by the development so far. Nevertheless, the work continues, as there are still several areas where we can further improve our operational excellence.
We started the year with no interruption in the implementation of our profitable growth strategy. In March, we announced an expansion investment at our Indian plant. The investment will increase our production capacity to better meet the growing demand for aggregates products in India and other markets. After the reporting period, we announced two acquisitions: one in our valves business in India and the other in our aggregates business in Sweden. These acquisitions represent complementary additions to our offering and will strengthen our presence in these markets. Executing our strategy is our key focus area for the remainder of the year.