Questions and answers related to Q3/2015 Interim Review
Oct 28, 2015
Why did the profitability (EBITA %) increase y-o-y? (Compared to Q3 2014)
Profitability improved due to higher level of net sales, improved gross profit, and the acquisition of Automation
Why did the profitability (EBITA %) decrease q-o-q? (Compared to Q2 2015)
Lower business volumes in stable business
What was the profitability excluding Automation?
We don’t report business lines’ profitability separately
Automation had solid performance in Q3
Why did orders received in Services decline by 1% at constant currencies, after strong H1?
Orders received increased in China, remained stable compared with the comparison period in North America, EMEA and Asia-Pacific, and decreased in South America. However, currency has supported the reported figures in North America.
Orders received increased in Mill Improvements and Fabrics, remained stable compared with the comparison period in Performance Parts and decreased in Energy and Environmental, and Rolls.
Key issues to grow services are related to increase long-term agreements, being close to customers
Long-term outlook for services intact, service growth is strategic priority for Valmet
Why did you downgrade the short term market outlook for Board and paper to satisfactory (previously good)?
It seems that customers’ decision making takes longer time
Any improvement in Energy, where the short term outlook is “weak”?
Customers’ decision making takes long time, no clear improvement seen
Very difficult to evaluate the impact on our business and our customers: Typically customers consider the investment in longer term, but it may be quite difficult to forecast the long-term price development