During the third quarter of 2016, Valmet’s orders received increased 9 percent. Orders received increased in the Pulp and Energy business line, remained at the previous year’s level in the Services and Automation business lines and decreased in the Paper business line.
Although net sales decreased 7 percent in the third quarter, profitability (Comparable EBITA) increased 10 percent. Profitability improved due to the higher level of net sales in the Services business line. Comparable EBITA margin was 7.5 percent, which is the highest figure since Valmet became an independent company.
Valmet’s order backlog increased by EUR 85 million since the end of June 2016 and the backlog currently stands at EUR 2.2 billion. Net debt and gearing decreased in the third quarter and Valmet’s gearing is now 15 percent.
Valmet reiterates its guidance, according to which Valmet estimates that net sales in 2016 will remain at the same level with 2015 (EUR 2,928 million) and Comparable EBITA in 2016 will increase in comparison with 2015 (EUR 182 million).
In the short-term market outlook, Valmet estimates that the short-term market outlook has increased to a good level (previously satisfactory) in tissue and in energy and decreased to a satisfactory level (previously good level) in board and paper. The satisfactory short-term market outlook for services, automation and pulp is reiterated.
Valmet has been included in the Dow Jones Sustainability Index (DJSI) for the third consecutive year, which means that Valmet maintains its position among the world’s sustainability leaders. This is an excellent achievement and it shows that Valmet has been able to improve its sustainability performance year by year.
A recording of the Q3 result presentations is available at www.valmet.com/webcasts. Don’t forget to watch the three-minute summary video of Valmet’s Q3 results in Valmet’s IR Video Gallery.