Valmet Oyj's financial statement release on February 8, 2017 at 12:00 noon 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.
October-December 2016: Orders received increased in the Paper, Automation and Services business lines
January-December 2016: Orders received increased and profitability improved
The Board of Directors proposes for the Annual General Meeting that a dividend of EUR 0.42 per share be paid. The proposed dividend equals to 76 percent of the net result.
Guidance for 2017
Valmet estimates that net sales in 2017 will remain at the same level as in 2016 (EUR 2,926 million) and Comparable EBITA in 2017 will increase in comparison with 2016 (EUR 196 million).
General economic outlook
After a lackluster outturn in 2016, economic activity is projected to pick up pace in 2017 and 2018, especially in emerging market and developing economies. However, there is a wide dispersion of possible outcomes around the projections, given uncertainty surrounding the policy stance of the incoming U.S. administration and its global ramifications. (International Monetary Fund, January 16, 2017)
Short-term market outlook
Valmet estimates that the short-term market outlook has increased to a good level in board and paper (previously satisfactory level).
Valmet reiterates the good short-term market outlook in tissue and energy as well as the satisfactory short-term market outlook for services, automation and pulp.
President and CEO Pasi Laine: Increase in orders received and higher order backlog enable further improvement
Orders received increased 9 percent in 2016 supported by all business lines. Stable business, i.e. the Services and Automation business lines, accounted for about EUR 1.5 billion or 47 percent of all orders. During 2016, we were able to increase orders received in both stable and capital business. In capital business, the development was strong especially in Energy and Tissue. Our order backlog developed well during the year, which gives us a good starting point when moving into 2017.
In 2016, we also made good progress in improving profitability: Comparable EBITA margin increased to 6.7 percent from 6.2 percent in 2015. Although we reached our target range of 6-9 percent, our objective is to improve profitability even further. The long-term margin target from 2017 onwards is 8-10 percent, so there is still a lot of work to be done to reach our new goal.
During the last couple of years, we have put a lot of focus on our stable business. In 2016 we introduced the new Valmet Way to Serve -concept, and we have been able to grow both the Services and Automation businesses. Our new financial targets make sure that the development of stable business will be given emphasis also going forward.
|Comparable earnings before interest, taxes and amortization (Comparable EBITA)||56||63||-10%||196||182||7%|
|% of net sales||7.2%||7.3%||6.7%||6.2%|
|Earnings before interest, taxes and amortization (EBITA)||48||52||-8%||183||157||17%|
|% of net sales||6.1%||6.1%||6.2%||5.3%|
|Operating profit (EBIT)||40||41||-3%||147||120||23%|
|% of net sales||5.1%||4.9%||5.0%||4.1%|
|Profit before taxes||38||37||3%||136||108||26%|
|Profit / loss||14||28||-50%||82||78||6%|
|Earnings per share, EUR||0.10||0.18||-48%||0.55||0.51||7%|
|Earnings per share, diluted, EUR||0.10||0.18||-48%||0.55||0.51||7%|
|Equity per share, EUR||5.88||5.70||3%||5.88||5.70||3%|
|Cash flow provided by operating activities||88||64||38%||246||78||>100%|
|Cash flow after investments||72||51||42%||188||-287|
|Return on equity (ROE) (annualized)||9%||9%|
|Return on capital employed (ROCE) before taxes (annualized)||12%||12%|
1 The calculation of key figures is presented on page 39.
2 At the end of period.
|Equity to assets ratio and gearing|| As at December |
| As at December |
|As at September 30, 2016|
|Equity to assets ratio at end of period||37%||36%||38%|
|Gearing at end of period||6%||21%||15%|
|Orders received, EUR million||Q4/2016||Q4/2015||Change||2016||2015||Change|
|Pulp and Energy||247||261||-5%||939||864||9%|
|Order backlog, EUR million|| As at December |
| As at December |
|Change||As at September 30, 2016|
|Net sales, EUR million||Q4/2016||Q4/2015||Change||2016||2015||Change|
|Pulp and Energy||187||245||-24%||826||913||-9%|
News conference and webcast for analysts, investors and media
Valmet will arrange a news conference in English for analysts, investors and media on Wednesday, February 8, 2017 at 3:00 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 2:55 p.m. (EET), at +44 1452 560304. The participants will be asked to provide the following conference ID: 52842476.
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, CFO, 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 2016 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.
Follow Valmet IR on Twitter www.twitter.com/valmetir