Valmet Oyj's stock exchange release on October 27, 2016 at 1:00 p.m. EET
Figures in brackets, unless otherwise stated, refer to the comparison period, i.e. the same period of the previous year. Automation has been consolidated into Valmet's financials since April 1, 2015, when the acquisition of Automation was completed.
July-September 2016: Comparable EBITA margin at 7.5 percent
January-September 2016: Orders received increased and profitability improved
Valmet reiterates its guidance for 2016
Valmet is reiterating its guidance presented on February 9, 2016 in 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).
General economic outlook
Global growth is projected to slow to 3.1 percent in 2016 before recovering to 3.4 percent in 2017. The forecast, revised down by 0.1 percentage point for 2016 and 2017 relative to April, reflects a more subdued outlook for advanced economies following the June U.K. vote in favor of leaving the European Union (Brexit) and weaker-than-expected growth in the United States. These developments have put further downward pressure on global interest rates, as monetary policy is now expected to remain accommodative for longer. (International Monetary Fund, October 4, 2016)
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.
Valmet reiterates the satisfactory short-term market outlook for services, automation and pulp.
President and CEO Pasi Laine: Orders received increased and profitability continued to improve
Orders received has increased 9 percent since the beginning of the year, supported by the stable business but also by the good progress in our energy business. In 2016, orders received in the Services business line has increased 5 percent and the Automation business line has contributed with over EUR 220 million in orders. In energy, orders received has more than doubled. We have received several large energy orders and also expanded to new geographical areas. For example, we have received our first order for a waste to energy boiler plant delivery to China.
In the third quarter of 2016, Valmet reached a Comparable EBITA margin of 7.5 percent, which is the highest figure since becoming an independent company. For the last twelve months, the margin stands at 6.8 percent. The improvement in profitability is the result of the systematic work that we have put into, for example, procurement costs. We will continue to focus on improving profitability also going forward.
Valmet has been included in the Dow Jones Sustainability Index (DJSI) for the third consecutive year. This means that we maintain our position among the world's sustainability leaders, which is an excellent achievement. It shows that we have been able to improve our sustainability performance year by year, which is a key criteria for inclusion in the index. Sustainability is very important for us and sustainability is at the core of Valmet's business strategy and operations.
|EUR million||Q3/2016||Q3/2015||Change|| Q1-Q3/ |
| Q1-Q3/ |
|Comparable earnings before interest, taxes and amortization (Comparable EBITA)||52||47||10%||140||120||17%|
|% of net sales||7.5%||6.4%||6.5%||5.8%|
|Earnings before interest, taxes and amortization (EBITA)||49||43||15%||135||104||29%|
|% of net sales||7.2%||5.9%||6.3%||5.0%|
|Operating profit (EBIT)||41||33||26%||107||78||37%|
|% of net sales||6.0%||4.4%||5.0%||3.8%|
|Profit before taxes||38||29||29%||98||71||38%|
|Profit / loss||26||21||25%||69||50||37%|
|Earnings per share, EUR||0.17||0.14||28%||0.46||0.33||37%|
|Earnings per share, diluted, EUR||0.17||0.14||28%||0.46||0.33||37%|
|Equity per share, EUR||5.68||5.40||5%||5.68||5.40||5%|
|Cash flow provided by operating activities||122||16||>100%||158||14||>100%|
|Cash flow after investments||108||13||>100%||116||-338|
|Return on equity (ROE) (annualized)||11%||8%|
|Return on capital employed (ROCE) before taxes (annualized)||12%||11%|
1 The calculation of key figures is presented on page 37.
2 At the end of period.
|Equity to assets ratio and gearing|| As at September |
| As at September |
|As at June 30, 2016|
|Equity to assets ratio at end of period||38%||35%||36%|
|Gearing at end of period||15%||28%||27%|
|Orders received, EUR million||Q3/2016||Q3/2015||Change|| Q1-Q3/ |
| Q1-Q3/ |
|Pulp and Energy||275||206||33%||692||603||15%|
|Order backlog, EUR million|| As at September |
| As at September |
|Change||As at June 30, 2016|
|Net sales, EUR million||Q3/2016||Q3/2015||Change|| Q1-Q3/ |
| Q1-Q3/ |
|Pulp and Energy||196||215||-9%||640||668||-4%|
News conference and webcast for analysts, investors and media
Valmet will arrange a news conference in English for analysts, investors, and media on Thursday, October 27, 2016 at 2:00 p.m. Finnish time (EET). The news conference will be held at Valmet Head Office in Keilaniemi, Keilasatama 5, 02150 Espoo, Finland. The news conference can also be followed through a live webcast at www.valmet.com/webcasts.
It is also possible to take part in the news conference through a conference call. Conference call participants are requested to dial in at least five minutes prior to the start of the conference, at 1:55 p.m. (EET), at +44 2071 928000. The participants will be asked to provide the following conference ID: 93428439.
During the webcast and the conference call, all questions should be presented in English. After the webcast and the conference call, media has a possibility to interview the management in Finnish.
The event can also be followed on Twitter at www.twitter.com/valmetir.
Further information, please contact:
Calle Loikkanen, Director, Investor Relations, Valmet, tel. +358 10 672 0020
Kari Saarinen, Chief Financial Officer, Valmet, tel. +358 10 672 9603
Director, Investor Relations
Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.
Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.
Valmet's net sales in 2015 were approximately EUR 2.9 billion. Our 12,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.
Read more www.valmet.com, www.twitter.com/valmetglobal
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