Interim Review January-September 2019

Metso’s Interim Review for January-September 2019 was published on Friday, October 25, 2019.

Metso’s President and CEO Pekka Vauramo and CFO Eeva Sipilä will present the results in an audiocast and a conference call for analysts and investors today at 1:00 p.m. EEST.

Conference call participants are requested to dial in five minutes before the event on:
United States: +1 855 857 06 86
other countries: +44 333 300 08 04

The confirmation code for joining the conference call is 30069462#.

July-September 2019 in brief

  • Healthy market activity in both segments
  • Orders received increased 1% to EUR 894 million (883 million)
  • Sales grew 19%, totaling EUR 933 million (786 million)
  • Adjusted EBITA improved to EUR 131 million, or 14.0% of sales (96 million, or 12.1%)
  • Operating profit improved to EUR 108 million, or 11.5% of sales (91 million, or 11.6%)
  • Earnings per share were EUR 0.49 (0.40)
  • Free cash flow was EUR 12 million (66 million)

January-September 2019 in brief

  • Orders received increased 7% to EUR 2,776 million (2,597 million)
  • Sales grew 17%, totaling EUR 2,672 million (2,276 million)
  • Adjusted EBITA was EUR 356 million, or 13.3% of sales (272 million, or 11.9%)
  • Operating profit was EUR 322 million, or 12.0% of sales (258 million, or 11.3%)
  • Earnings per share were EUR 1.52 (1.11)
  • Free cash flow was EUR 22 million (89 million)

Market outlook

  • Market activity in both segments, Minerals and Flow Control, is expected to remain at the current 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.

President and CEO Pekka Vauramo:

Our performance during the third quarter was solid and we continued to deliver good improvement from the previous quarters. Activity in our end markets remained healthy and is visible in the strong order intake for services. Aggregates equipment orders were up slightly despite seasonally low quarter in the Northern Hemisphere and the Indian market remained softer than a year ago. Mining customers’ decision-making was slowed down by cautiousness with regards to global uncertainties. Sales growth continued at a double-digit rate in both segments and drove operational leverage, resulting in a clear improvement in profitability.

During the quarter we made progress on several fronts in executing our profitable growth strategy. The McCloskey acquisition in Canada was successfully closed right after the end of quarter. This deal expanded our offering of mobile crushing and screening equipment in the aggregates industry and is the biggest acquisition for Metso since the Svedala acquisition in 2001. Metso-McCloskey collaboration was officially launched right after confirmation of the closing at the Metso global distributor days. We are excited about the future possibilities this will bring.

Major steps were taken during the quarter in the planned combination of Metso Minerals and Outotec and in the formation of the future Neles, an independent valves business. We are on the road to creating two global leading companies: Metso Outotec, serving the aggregates, minerals processing and metals industries; and Neles, a focused supplier of valves for demanding applications. The Extraordinary General Meetings of shareholders are right around the corner and we anticipate getting the shareholders’ approval to continue implementing these transactions. The closing is targeted to take place in the second quarter of 2020, after the necessary competition authority and other approvals. Until then we will remain fully focused on delivering on our current strategy.