Short-term risks and uncertainties

The description of short term risks of our business operations are published in accordance with Metso's financial reports.

Short-term business risks and market uncertainties

Updated with Financial Statements Review published on February 6, 2020

Uncertainties in economic growth and political developments globally 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. Concern about the possible effects of the ongoing trade disputes on economic growth has had an impact on metal prices. This could further impact our customers’ behavior.

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.

The outbreak of the coronavirus will likely have an impact on the manufacturing and supply chain-related operations in China during the first quarter of 2020.

Information security and cyber threats could disturb or disrupt Metso’s businesses and operations.