Metso’s Interim Review January 1 – September 30, 2019
Metso Corporation, Stock Exchange Release, October 25, 2019 at 9:45 a.m. EEST
This is a summary of Metso’s January 1 – September 30, 2019 Interim Review. The complete report is attached to this release and is also available at www.metso.com/latestreports.
Figures in brackets refer to the corresponding period in 2018, unless otherwise stated.
July-September 2019 in brief
January-September 2019 in brief
|EUR million||Q3/2019||Q3/2018||Change %||Q1–Q3/2019||Q1–Q3/2018||Change %||2018|
|Orders received by services business||528||461||15||1,553||1,415||10||1,913|
|% of orders received||59||52||56||54||55|
|Order backlog at the end of period||1,740||1,686||3||1,686|
|Sales by services business||516||436||18||1,451||1,300||12||1,773|
|% of sales||55||55||54||57||56|
|Adjusted EBITA *)||131||96||36||356||272||31||369|
|% of sales||14.0||12.1||13.3||11.9||11.6|
|% of sales||11.5||11.6||12.0||11.3||11.1|
|Earnings per share, EUR||0.49||0.40||23||1.52||1.11||37||1.53|
|Free cash flow||12||66||22||89||-75||146|
|Return on capital employed (ROCE) before taxes, %, annualized||19.2||17.1||16.9|
|Equity to assets ratio, %||40.2||47.8||47.7|
|Net gearing, %||28.4||10.3||11.7|
|Personnel at end of period||14,563||12,772||14||13,150|
• Market activity in both segments, Minerals and Flow Control, is expected to remain at the current level in both the equipment and services business.
Metso’s market outlook describes the expected sequential development of market activity during the following
six-month period using three categories: improve, remain at the current level, or decline.
President and CEO Pekka Vauramo:
Our performance during the third quarter was solid and we continued to deliver good improvement from the previous quarters. Activity in our end markets remained healthy and is visible in the strong order intake for services. Aggregates equipment orders were up slightly despite seasonally low quarter in the Northern Hemisphere and the Indian market remained softer than a year ago. Mining customers’ decision-making was slowed down by cautiousness with regards to global uncertainties. Sales growth continued at a double-digit rate in both segments and drove operational leverage, resulting in a clear improvement in profitability.
During the quarter we made progress on several fronts in executing our profitable growth strategy. The McCloskey acquisition in Canada was successfully closed right after the end of quarter. This deal expanded our offering of mobile crushing and screening equipment in the aggregates industry and is the biggest acquisition for Metso since the Svedala acquisition in 2001. Metso-McCloskey collaboration was officially launched right after confirmation of the closing at the Metso global distributor days. We are excited about the future possibilities this will bring.
Major steps were taken during the quarter in the planned combination of Metso Minerals and Outotec and in the formation of the future Neles, an independent valves business. We are on the road to creating two global leading companies: Metso Outotec, serving the aggregates, minerals processing and metals industries; and Neles, a focused supplier of valves for demanding applications. The Extraordinary General Meetings of shareholders are right around the corner and we anticipate getting the shareholders’ approval to continue implementing these transactions. The closing is targeted to take place in the second quarter of 2020, after the necessary competition authority and other approvals. Until then we will remain fully focused on delivering on our current strategy.
Audiocast and conference call details
Metso’s President and CEO Pekka Vauramo and CFO Eeva Sipilä will present the results in an audiocast and a conference call for analysts and investors today at 1:00 p.m. EEST. The audiocast can be followed at www.metso.com/latestreports. A recording and a transcript will be available at the same webpage after the event has finished.
Conference call participants are requested to dial in five minutes before the event on:
United States: +1 855 857 06 86
other countries: +44 333 300 08 04
The confirmation code for joining the conference call is 30069462#.
For further information:
Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel. +358 20 484 3253
VP, Investor Relations
Metso is a world-leading industrial company offering equipment and services for the sustainable processing and flow of natural resources in the mining, aggregates, recycling and process industries. With our unique knowledge and innovative solutions, we help our customers improve their operational efficiency, reduce risks and increase profitability. Metso is listed on the Nasdaq Helsinki in Finland and had sales of about EUR 3.2 billion in 2018. Metso employs over 14,000 people in more than 50 countries.