Metso lowers its EBITA guidance for the Pulp, Paper and Power segment (to be transferred to Valmet) for 2013
Metso Corporation's stock exchange release on December 19, 2013 at 3:45 p.m. local time
Metso has decided to lower its EBITA guidance for the Pulp, Paper and Power segment for 2013. Pulp, Paper and Power segment's net sales and EBITA before non-recurring items were previously expected to be significantly lower compared to 2012. Its net sales and EBITA before non-recurring items during the second half were expected to be at about the first half's level.
The updated guidance now indicates that EBITA before non-recurring items of the Pulp, Paper and Power segment is expected to be significantly lower than the level booked during the first half, mainly because of a delay linked to a major pulp project delivery and the higher-than-expected costs incurred as a result. The project in question is an individual case and is not expected to have a wider impact on the Pulp, Paper and Power segment. Capacity utilization in the company's paper and power businesses has also been lower than expected.
Metso's overall guidance for the Group remains unchanged: it is estimated that net sales and EBITA before non-recurring items in 2013 will be significantly lower than those in 2012.
Previous guidance for the Pulp, Paper and Power segment:
Both net sales and EBITA before non-recurring items are expected to be significantly lower compared to 2012. Net sales and EBITA during the second half are expected to be at about the first half's level.
Updated guidance for the Pulp, Paper and Power segment:
Both net sales and EBITA before non-recurring items are expected to be significantly lower compared to 2012. Net sales during the second half are expected to be at the level booked during the first half of 2012 (EUR 1,345 million), but EBITA before non-recurring items is expected to be significantly lower than during the first half of 2013 (EUR 55.5 million).
Metso's Extraordinary General Meeting decided on October 1, 2013 that Metso will demerge through a partial demerger and that all the assets, debts, and liabilities relating to Metso's Pulp, Paper and Power businesses will transfer, without liquidation, from Metso to Valmet Corporation.
The future Valmet Corporation is a leading global developer and supplier of services and technologies for the pulp, paper, and energy industries. Our 11,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day.
Valmet's services cover everything from maintenance outsourcing to mill and plant improvements and spare parts. Our strong technology offering includes entire pulp mills, tissue, board and paper production lines, as well as power plants for bio-energy production.
The company has over 200 years of industrial history and will be reborn through the demerger of the pulp, paper and power businesses from Metso Group on December 31, 2013. Valmet's net sales in 2012 were approximately EUR 3 billion. Valmet's objective is to become the global champion in serving its customers.
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.
Further information, please contact:
Markku Honkasalo, CFO, future Valmet Corporation, tel. +358 10 672 0008
Hanna-Maria Heikkinen, Vice President, Investor Relations, future Valmet Corporation tel. +358 10 672 0007
VP, Investor Relations
NASDAQ OMX Helsinki Ltd