Valmet’s results for the second quarter of 2018 exceeded analysts’ expectations on orders received, net sales and Comparable EBITA. Orders received increased 9 percent to EUR 865 million, which is the highest second quarter figure and the third-highest of all quarters since mid-2014. Order growth was strongest in the Paper business line, where especially the board and paper market has had high activity. Paper business line’s rolling 12 months orders now exceed 1.1 billion euros. In the second quarter, orders received increased also in Services. During the first half of the year, Valmet’s orders received remained at the previous year’s level.
Net sales increased 15 percent during the second quarter and amounted to EUR 844 million. The increase was supported by all business lines, of which Paper increased the most following the high level of orders in the previous quarters. In the first half-year, net sales were 14 percent higher than in the same period last year.
Comparable EBITA increased in the second quarter, and the margin improved to 7.2 percent. Due to the low first quarter, Comparable EBITA for the first half of 2018 is at the same level as a year ago.
At EUR 2.6 billion, Valmet’s order backlog was 37 million higher than at the end of the previous quarter. We expect approximately 55% of the backlog to be recognized as net sales during 2018.
Valmet raised its net sales guidance before the results release on July 17, 2018. We now expect net sales in 2018 to increase in comparison with 2017. The guidance for Comparable EBITA remained unchanged, i.e. Comparable EBITA is expected to increase. The short-term market outlook also remained unchanged. The outlook is ‘good’ in four of the six markets where Valmet operates: services, automation, board and paper, and tissue. The outlook is ‘satisfactory’ for energy and ‘weak’ for pulp, where there are still no big investment announcements from customers.
Valmet’s Capital Markets Day is approaching, and we have now launched a CMD website. In addition to all the information about the event, you can find short videos with the business line presidents introducing their businesses. Watch the videos and get a head start for Valmet’s capital markets day! The event in Helsinki is only for institutional investors and analysts, but please follow the presentations via live webcast on September 18. In the meantime, we at Valmet IR wish you a nice summer.