Stock Exchange release April 26, 2012 12:00:00 PM CET

Metso Corporation's Interim Review January 1 - March 31, 2012

Metso Corporation's stock exchange release on April 26, 2012 at 12:00 p.m. local time

Strong order intake gives a positive start for the year

Metso will hold a news conference for media, investors and analysts in Helsinki on Thursday, April 26, 2012 at 03:00 pm Finnish time The event will take place at Metso Group Head Office, Fabianinkatu 9 A, Helsinki, Finland. The news conference can also be followed through a live webcast at or through a simultaneously arranged conference call. The news conference will be in English (details at the end of this release).

This is a summary of Metso's Q1/2012 Interim Review and the complete report is attached as a pdf-file to this release and is also available on our website at

Figures in brackets, unless otherwise stated, refer to the comparison period, i.e. the same period in the previous year.

Highlights of the first quarter of 2012

  • Solid development in all our strategic priority areas; services, emerging markets and mining. 

  • New orders worth EUR 1,920 million were received in January-March, i.e. 4 percent more than in the comparison period (EUR 1,847 million). Orders received by the services business increased 4 percent and were EUR 881 million, i.e. 48 percent of all orders received (EUR 848 million and 48%). 

  • Net sales increased 22 percent on the comparison period and were EUR 1,755 million (EUR 1,444 million). Our services business net sales were up 13 percent, totaling EUR 721 million and accounting for 43 percent of total net sales (EUR 640 million and 46%). 

  • Earnings before interest, tax and amortization (EBITA), before non-recurring items, increased 14 percent and were EUR 140.4 million, i.e. 8.0 percent of net sales (EUR 123.6 million and 8.6%). 

  • Earnings per share were EUR 0.56 (EUR 0.49). 

  • Free cash flow was EUR 116 million (EUR 68 million). 

Metso's President and CEO Matti Kähkönen comments on the first quarter:

"We continued to see good demand in most of our customer industries during the first quarter, which translated into a strong order intake of EUR 1.9 billion. All of our strategic priority areas -services, emerging markets and mining - recorded strong development. Organic growth in net sales continued to be strong, at more than 20 percent compared to the first quarter of 2011. Our EBITA before non-recurring items rose to EUR 140 million. This was despite temporarily lower profitability in the Automation segment in January and February. Going forward, the market for paper and board machines is expected to remain weak due to low demand in China, whereas our other businesses expect better demand broadly in line with the first quarter. Our strong order backlog puts us in a good position to meet our guidance for 2012."

Metso's key figures

EUR million Q1/2012 Q1/2011 Change % 2011
Net sales 1,755 1,444 22 6,646
Net sales of services business 721 640 13 2,871
   % of net sales *) 43 46   45
Earnings before interest, tax and amortization (EBITA) and non-recurring items 140.4 123.6 14 628.5
   % of net sales 8.0 8.6   9.5
Operating profit 128.2 112.9 14 571.8
   % of net sales 7.3 7.8   8.6
Earnings per share, EUR 0.56 0.49 14 2.38
Orders received 1,920 1,847 4 7,961
Orders received of services business 881 848 4 3,100
   % of orders received *) 48 48   40
Order backlog at end of period 5,407 4,300 26 5,310
Free cash flow 116 68 71 375
Return on capital employed (ROCE) before taxes, annualized, % 17.8 15.2   18.4
Equity to assets ratio at end of period, % 36.3 35.0   39.8
Gearing at end of period, % 7.6 13.8   12.2

*) Calculated out of external net sales / orders received excluding Valmet Automotive, which does not have a services business.

Short-term outlook

Market development

Demand has been healthy in most of our customer industries in recent months, with some variation between different customer industries and geographic areas. We estimate that the operating environment in emerging markets will continue to be good in most of our customer industries. We anticipate that most of our customer industries will continue to utilize their capacity at a good or satisfactory level, thereby supporting our services business.

We expect underlying demand in the mining market to remain good. Due to expected high utilization rates at mines and our large installed equipment base, we expect demand for our mining services to remain excellent.

Demand for construction equipment is projected to remain good in the Asia-Pacific region and Brazil. We anticipate that demand for equipment used in aggregates processing by the construction industry in Europe and in North America will stay at the current relatively low level going forward. We estimate that demand for our construction industry services will remain satisfactory.

We estimate that demand for our automation products will continue to be good, although activity in the pulp and paper industry is anticipated to slow somewhat. We expect demand for our automation solution services to remain good.

We expect the market for pulp mills to remain satisfactory, with demand for rebuilds and services remaining good.

Demand for papermaking lines is expected to be weak. Capacity utilization rates in the paper and board industry are expected to remain sufficient to keep demand for our services at a good level.  

Demand for power plants that use renewable energy sources is expected to remain satisfactory, while demand for power plant services is anticipated to be good.

Financial development

In line with our earlier statement and assuming that current demand in our customer industries does not clearly weaken due to the European economic situation or other similar factors, we estimate that our net sales for 2012 will grow compared to 2011 and that our profit (EBITA before non-recurring items) will improve.

The estimates for our financial performance in 2012 are based on Metso's current market outlook, strong order backlog for 2012 and business scope, as well as on foreign exchange rates remaining similar to those in March 2012.

Helsinki, April 26, 2012

Metso Corporation's Board of Directors

Metso is a global supplier of technology and services to customers in the process industries, including mining, construction, pulp and paper, power, and oil and gas. Our 30,000 professionals based in over 50 countries deliver sustainability and profitability to customers worldwide. Expect results. ,

Further information, please contact:

Matti Kähkönen, President and CEO, Metso Corporation, tel. +358 20 484 3000
Harri Nikunen, CFO, Metso Corporation, tel. +358 20 484 3010
Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel. +358 20 484 3253

Invitation to news conferences

Metso will hold a news conference for media, investors and analysts in Helsinki on Thursday, April 26, 2012 at 15:00 EEST / Helsinki, 08:00 EST / New York, 13:00 BST / London, 14:00 CEST / Paris. The event will take place at Metso Group Head Office, Fabianinkatu 9 A, Helsinki, Finland. The news conference will be in English.

The news conference can also be followed through a live webcast at or through a simultaneously arranged conference call. It will be possible to ask questions during the event through a conference call lines.

Due to the live webcast, we are kindly asking those attending the news conference to be present 5 minutes prior the start of the event.

Conference call details

Conference call participants are requested to dial in a few minutes prior to the start of the teleconference

US: +1 334 323 6201
other countries: +44 20 7162 0077
access code: 910 752

A replay will be available for 14 days until May 10, 2012 on the following phone numbers:
US: +1 954 334 0342
other countries: +44 20 7031 4064
access code 910 752

After the news conference there will be an audio file (mp3) available for downloading and at the latest on Friday, April 27, a transcript of the event at The presentation material will be available at  

You are most welcome to participate in these events.

It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for customer industry profitability and investment willingness, expectations for company growth, development and profitability and the realization of synergy benefits and cost savings, and statements preceded by "expects", "estimates", "forecasts" or similar expressions, are forward-looking statements. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by the company.

Such factors include, but are not limited to:
1) general economic conditions, including fluctuations in exchange rates and interest levels, which influence the operating environment and profitability of customers and thereby the orders received by the company and their margins
(2) the competitive situation, especially significant technological solutions developed by competitors
(3) the company's own operating conditions, such as the success of production, product development and project management and their continuous development and improvement
(4) the success of pending and future acquisitions and restructuring.

Metso Corporation

Harri Nikunen

Juha Rouhiainen
VP, Investor Relations

NASDAQ OMX Helsinki Ltd

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