Stock Exchange release July 31, 2002 12:13:53 PM CET

Metso's Interim Review, January 1 - June 30, 2002: INCREASED NEW ORDERS AND IMPROVED ORDER BACKLOG

- Metso Corporation’s net sales in January-June totaled EUR 2,289 million (EUR 2,019 million in January-June 2001).
- New orders were received to the amount of EUR 2,547 million (EUR 1,915 million).
- The order backlog at the end of June was EUR 1,925 million (Dec 31, 2001: EUR 1,772 million).        
- Operating profit before nonrecurring items and amortization of goodwill was EUR 118.2 million (EUR 141.9 million). Operating profit was EUR 73.5 million (EUR 120.8 million).
- Earnings per share excl. nonrecurring items and amortization of goodwill were EUR 0.43 (EUR 0.77). Earnings per share were EUR 0.12 (EUR 0.61).
Metso’s market environment remained uncertain in April-June. Due to Metso’s strong market position, the volume of orders received by the Corporation continued at a satisfactory level.
In January–June, the value of new orders received by Metso increased by 33 percent from the corresponding period last year. The value of orders received by Metso Paper and Metso Automation was almost at the level of the comparison period, whereas the orders received by Metso Minerals increased considerably from the comparison period due to the acquisition of Svedala in September 2001. Metso’s order backlog increased by 9 percent from the end of 2001.
Metso’s net sales for January–June increased by 13 percent from the corresponding period of 2001. Of the net sales, 41 percent were from the deliveries of Metso Minerals, 38 percent from Metso Paper, 13 percent from Metso Automation and 8 percent from Metso Ventures. Aftermarket services accounted for 34 percent of the Corporation’s net sales.
Metso Minerals’ integration process is expected to be concluded by the end of September 2002. At the beginning of the process it was estimated that the annual synergy benefits of integration would amount to EUR 70 million and be realized in full during 2003. The target is now to exceed EUR 90 million in annual synergy benefits, of which more than half is expected to be realized already in 2002.
Metso's market environment is estimated to continue uncertain in the near future. However, the demand for Metso's products is estimated to continue at the satisfactory level of the year’s first half.  "We estimate that profitability in the second half of 2002 will be clearly up on the corresponding period last year", says Tor Bergman, President & CEO of Metso Corporation. "Metso's order backlog has strengthened, Metso Minerals integration is progressing well and we have several ongoing projects to improve cost efficiency and the use of capital."
Metso Corporation's Interim Review for January – June 2002
The full report including tables can be downloaded from the enclosed link
Interim Review January 1 - June 30, 2002 Download

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