Stock Exchange release April 23, 2013 12:00:00 PM CET

Margin improved in a slightly softer market environment

Metso Corporation's stock exchange release on April 23, 2013 at 12:00 a.m. local time

We will arrange a news conference on Metso's January-March 2013 interim review for the media, investors and analysts, in Helsinki today. The event takes place at Metso Group Head Office, Fabianinkatu 9 A, Helsinki, Finland. A News conference in English will be arranged at 15:00 EEST / Helsinki time (08:00 EDT / New York, 13:00 BST / London, 14:00 CEST / Paris). The news conference can also be followed through a live webcast at and a conference call, details at the end of this release. Questions are accepted via conference call only.


This is a summary of Metso's January-March 2013 Interim Review. Complete report is attached to this release as a pdf-file and is also available at

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

Highlights of the first quarter of 2013

  • New orders worth EUR 1,584 million were received in January-March (EUR 1,920 million). Orders received by the services business were at a similar level to those in the first quarter of 2012 and totaled EUR 873 million, i.e. 57 percent of all orders received (EUR 881 million and 48%).
  • Net sales were EUR 1,590 million (EUR 1,755 million). Net sales in the services business were at the level of comparison period, EUR 727 million and accounted for 47 percent of Metso's net sales (EUR 721 million and 43%).
  • Earnings before interest, tax and amortization (EBITA), before non-recurring items, were EUR 132 million, i.e. 8.3 percent of net sales (EUR 141 million and 8.0%).
  • Earnings per share were EUR 0.48 (EUR 0.56).
  • Free cash flow was EUR 74 million (EUR 116 million).
  • The Board decided to start a strategy study relating to a possible demerger of Metso. 

Guidance for financial performance during 2013 unchanged

Based on the current economic situation, the market outlook, our order backlog for 2013, and foreign exchange rates remaining similar to those at the end of March, we estimate that our EBITA before non-recurring items in 2013 will be at around 2012 levels and our net sales at the 2012 level or slightly below.


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


The first quarter was two-fold for Metso. Firstly, as expected, demand for new equipment and projects remained similar to that seen in the previous quarter and below that in the first quarter of 2012. Secondly, and even more importantly, Metso's flexible business model and focus on its services business yielded a good operating result (EBITA) and an improved EBITA margin for the quarter, despite net sales coming in a little slower than in early 2012. The Mining and Construction and Automation segments recorded a strong improvement in their margins, and we expect these segments to perform well going forward. Pulp, Paper and Power, however, was weak, as had been expected. The challenges in this segment are known and we will continue our actions to improve profitability in the business. The results of this work, together with our slightly more optimistic view of the segment's customer industries, are expected to be seen in better performance later this year.


In March, the Board launched a strategy study to review the possibilities of separating Metso into two independent listed companies. This work is proceeding at a good pace and according to the planned milestones. We are confident that this project will be in the best interests of our customers, personnel, shareholders and other stakeholders.


Metso's key figures


EUR million Q1/2013 Q1/2012 Change % 2012
Orders received 1,584 1,920 -18 6,865
Orders received of services business 873 881 -1 3,264
   % of orders received 1) 57 48   49
Order backlog at end of period 4,558 5,407 -16 4,515
Net sales 1,590 1,755 -9 7,504
Net sales of services business 727 721 1 3,174
   % of net sales 1) 47 43   44
Earnings before interest, tax and amortization (EBITA) and non-recurring items 131.5 141.2 -7 687.5
   % of net sales 8.3 8.0   9.2
Operating profit 119.2 129.0 -8 601.7
   % of net sales 7.5 7.4   8.0
Earnings per share, EUR 0.48 0.56 -14 2.46
Free cash flow 74 116 -36 257
Return on capital employed (ROCE) before taxes, % 15.1 17.8   19.6
Equity to assets ratio at end of period, % 36.9 36.3   40.5
Net gearing at end of period, % 13.5 7.6   14.2

1) Excluding Valmet Automotive


Short-term outlook

Market development


The global economic situation and demand in our customer industries have remained largely unchanged during the early part of the year. Some initial positive signs have been seen in the US and China, which may have a positive impact on the activity of our customer industries in the second half of 2013. Stable capacity utilization levels and the need to increase production efficiency will continue to support demand for our services business.


We expect underlying demand in the mining market to remain at the good level seen during the first quarter of the year. Due to expected high utilization rates at mines, our large installed equipment base, and stronger services presence, we expect demand for our mining services to remain excellent.


Demand for construction equipment is projected to strengthen somewhat in emerging markets, especially China. In developed markets, we anticipate demand to remain at current relatively low levels going forward. Demand for our construction industry services is expected to remain satisfactory.


Demand for our process automation and flow control solutions and services is expected to remain good. Strong demand in the oil and gas industry is expected to offset continuing softness in the pulp and paper industry.


The market for pulp mills is expected to remain satisfactory, with good demand for rebuilds and services. Structural changes in the paper industry are likely to continue and the demand for papermaking lines is expected to remain weak and the outlook for services good. Demand for recovery boilers for the pulping industry is projected to continue stable, whereas shale gas will continue to have a negative impact on market of renewable energy solutions. All in all, we expect the demand for power plants and for related services to remain satisfactory.

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 contribute to sustainability and deliver profitability to customers worldwide. Metso's shares are listed on the NASDAQ OMX Helsinki Ltd.,

For 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                 

Metso Corporation

Harri Nikunen



Juha Rouhiainen

VP, Investor Relations


Invitation to news conference for media, investors and analysts


Metso will arrange a news conference for investors and analysts in English in Helsinki on Tuesday, April 23, 2013 at 15:00 EEST / Helsinki time (08:00 EDT / 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.


This conference can also be followed through a live webcast at and a conference call from 3:00 p.m. onwards. Questions are accepted during the event via the conference call only.


Due to live webcast, we kindly ask those attending to be present 5 minutes prior to the start of the event. Representatives of the media are also welcome to attend. Also, requests for same day interviews are accepted, please contact Milla Kivinen, Communications officer, tel. +358 50 317 3500.


Conference call details

Conference call participants are requested to dial in five minutes before the scheduled time at:

  • US: +1 877 491 0064
  • other countries: +44 20 7162 0077
  • access code: 927 189

A replay of the call will be available until May 7, 2013 on the following phone numbers:

  • US: +1 954 334 0342
  • other countries: +44 20 7031 4064
  • access code 927 189


An audio file (mp3) and a transcript of the event will be made available for downloading at on Thursday, April 25, 2013 the latest.


The presentation material will be available after the publication of the Interim Review on April 23, 2013 at at approximately 12.00 noon local time/EEST.





NASDAQ OMX Helsinki Ltd


Interim Review Q1 2013 Download

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