Valmet’s Interim Review January 1 – September 30, 2021: Orders received increased to EUR 1.1 billion and Comparable EBITA to EUR 107 million in the third quarter

 Valmet’s Interim Review January 1 – September 30, 2021: Orders received increased to EUR 1.1 billion and Comparable EBITA to EUR 107 million in the third quarter

 

Valmet Oyj’s stock exchange release on October 26, 2021 at 1:00 p.m. EEST

 

Figures in brackets, unless otherwise stated, refer to the comparison period, i.e. the same period of the previous year.

July–September 2021: Comparable EBITA margin improved to 11.4 percent

         Orders received increased 58 percent to EUR 1,107 million (EUR 700 million).

         Orders received increased in all business lines.

         Orders received increased in Asia-Pacific, North America and EMEA (Europe, Middle East and Africa), remained at the previous year's level in South America, and decreased in China.

         Net sales increased 12 percent to EUR 935 million (EUR 832 million).

         Net sales increased in the Pulp and Energy, Paper and Services business lines, and remained at the previous year's level in the Automation business line.

         Comparable earnings before interest, taxes and amortization (Comparable EBITA) were EUR 107 million (EUR 91 million), and the corresponding Comparable EBITA margin was 11.4 percent (10.9%).

         Comparable EBITA increased due to higher gross profit.

         Earnings per share were EUR 0.50 (EUR 0.38).

         Items affecting comparability amounted to EUR 0 million (EUR -3 million).

         Cash flow provided by operating activities was EUR 57 million (EUR 94 million).

January–September 2021: Orders received and Comparable EBITA increased

         Orders received increased 34 percent to EUR 3,647 million (EUR 2,712 million).

         Orders received increased in all business lines.

         Orders received increased in all areas.

         Net sales increased 6 percent to EUR 2,736 million (EUR 2,573 million).

         Net sales increased in the Paper business line, remained at the previous year's level in the Services, and Pulp and Energy business lines, and decreased in the Automation business line.

         Comparable earnings before interest, taxes and amortization (Comparable EBITA) were EUR 282 million (EUR 218 million), and the corresponding Comparable EBITA margin was 10.3 percent (8.5%).

         Comparable EBITA increased due to higher gross profit.

         Earnings per share were EUR 1.31 (EUR 0.88).

         Items affecting comparability amounted to EUR 10 million (EUR -11 million).

         Cash flow provided by operating activities was EUR 385 million (EUR 418 million).

Guidance for 2021 unchanged

Valmet reiterates its guidance issued on April 16, 2021, in which Valmet estimates that net sales in 2021 will increase in comparison with 2020 (EUR 3,740 million) and Comparable EBITA in 2021 will increase in comparison with 2020 (EUR 365 million).

Short-term market outlook

Valmet estimates that the short-term market outlook for services has improved to good (previously good/satisfactory) and the short-term market outlook for tissue has decreased to satisfactory (previously good). Valmet reiterates the good short-term market outlook for automation, pulp, and board and paper and the weak short-term market outlook for energy.

President and CEO Pasi Laine: Order backlog amounted to EUR 4.2 billion

"Valmet’s orders received increased to EUR 1.1 billion in the third quarter of 2021. Orders received increased in all business lines. In the stable business (Services and Automation business lines), orders received increased to EUR 451 million1. In the capital business (Paper, and Pulp and Energy business lines), orders received increased to EUR 681 million.

Our order backlog reached a record high of EUR 4.2 billion, which is EUR 942 million higher than at the end of 2020.

Net sales increased both in the stable and capital business and amounted to EUR 935 million. The Comparable EBITA increased as well, and the Comparable EBITA margin was 11.4 percent.

On September 22, Valmet’s and Neles' Extraordinary General Meetings resolved to approve the merger of Valmet and Neles. The planned closing date of the merger is January 1, 2022.  The execution of the merger is still subject to obtaining the necessary merger control approvals by the relevant competition authorities, and therefore the planned closing date may still change.”

1 Including Automation package sales to capital projects

Merger with Neles

On July 2, 2021, Valmet announced that the Boards of Directors of Valmet Oyj and Neles Corporation have signed a combination agreement and a merger plan to combine the two companies through a merger. Both companies held an Extraordinary General Meeting on September 22, 2021, and both EGMs approved the merger. The planned closing date of the merger is January 1, 2022. The planned closing date may be delayed due to the regulatory processes ongoing. Should the closing be delayed from January 1, 2022, Valmet will issue a stock exchange release on the matter and the prospectus will be supplemented once there is more clarity on the timetable of the regulatory processes. Until the completion of the merger Valmet and Neles will carry out their respective businesses as separate and independent companies.

Key figures1

EUR million

Q3/2021

Q3/2020

Change

Q1–Q3/
2021

Q1–Q3/
2020

Change

Orders received

1,107 

 

700

58 

%

3,647 

 

2,712

34 

%

Order backlog2

4,199 

 

3,311

27 

%

4,199 

 

3,311

27 

%

Net sales

935 

 

832

12 

%

2,736 

 

2,573

6 

%

Comparable earnings before interest, taxes and amortization (Comparable EBITA)

107 

 

91

18 

%

282 

 

218

29 

%

% of net sales

11.4 

%

10.9 

%

 

10.3 

%

8.5 

%

 

Earnings before interest, taxes and amortization (EBITA)

107 

 

87

22 

%

293 

 

208

41 

%

% of net sales

11.4 

%

10.5 

%

 

10.7 

%

8.1 

%

 

Operating profit (EBIT)

95 

 

79

19 

%

255 

 

184

39 

%

% of net sales

10.1 

%

9.5 

%

 

9.3 

%

7.1 

%

 

Profit before taxes

95 

 

75

27 

%

253 

 

174

45 

%

Profit for the period

75 

 

57

32 

%

197 

 

131

50 

%

Earnings per share, EUR

0.50 

 

0.38

32 

%

1.31 

 

0.88

50 

%

Earnings per share, diluted, EUR

0.50 

 

0.38

32 

%

1.31 

 

0.88

50 

%

Equity per share, EUR2

8.10 

 

6.81

19 

%

8.10 

 

6.81

19 

%

Cash flow provided by operating activities

57 

 

94

-39 

%

385 

 

418

-8 

%

Cash flow after investments

19 

 

-380

 

312 

 

-100

 

Return on equity (ROE) (annualized)

 

 

 

22 

%

17 

%

 

Return on capital employed (ROCE) before taxes (annualized)

 

 

 

21 

%

17 

%

 

Equity to assets ratio2

 

 

 

41 

%

38 

%

 

Gearing2

 

 

 

-1 

%

18 

%

 

1   The calculation of key figures is presented on page 50.

2   At end of period.

Orders received, EUR million

Q3/2021

Q3/2020

Change

Q1–Q3/
2021

Q1–Q3/
2020

Change

Services

343 

 

288 

 

19 

%

1,099 

 

1,014 

 

8 

%

Automation

83 

 

65 

 

29 

%

277 

 

238 

 

17 

%

Pulp and Energy

150 

 

52 

 

>100%

937 

 

643 

 

46 

%

Paper

531 

 

295 

 

80 

%

1,334 

 

818 

 

63 

%

Total

1,107 

 

700 

 

58 

%

3,647 

 

2,712 

 

34 

%

 

Order backlog, EUR million

As at Sep 30, 2021

As at Sep 30, 2020

Change

As at Jun 30, 2021

Total

4,199 

 

3,311 

 

27 

%

4,019 

 

 

Net sales, EUR million

Q3/2021

Q3/2020

Change

Q1–Q3/
2021

Q1–Q3/
2020

Change

Services

324 

 

307 

 

5 

%

951 

 

924 

 

3 

%

Automation

76 

 

72 

 

5 

%

206 

 

218 

 

-5 

%

Pulp and Energy

260 

 

211 

 

23 

%

729 

 

717 

 

2 

%

Paper

276 

 

242 

 

14 

%

849 

 

713 

 

19 

%

Total

935 

 

832 

 

12 

%

2,736 

 

2,573 

 

6 

%

 

News conference and webcast for analysts, investors and media

Valmet will arrange a news conference in English as a live webcast at https://valmet.videosync.fi/2021-q3 on Tuesday, October 26, 2021, at 2:00 p.m. Finnish time (EEST). President and CEO Pasi Laine and CFO Kari Saarinen will be presenting the results. Recording of the webcast will be available shortly after the event at the same address.

It is 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

Finland +358 981710310
United Kingdom +44 3333000804
France +33 170750711
Germany +49 6913803430
Norway +47 23500243
Sweden +46 856642651
United States +1 6319131422

The participants will be asked to provide the conference PIN: 94442099#.

All questions should be presented in English.

The event can also be followed on Twitter at http://www.twitter.com/valmetir.

 

Important notice

The merger of Valmet and Neles Corporation (“Neles”) and the merger consideration securities have not been and will not be registered under the U.S. Securities Act of 1933 (the “U.S. Securities Act”), and may not be offered, sold or delivered within or into the United States, except pursuant to an applicable exemption of, or in a transaction not subject to, the U.S. Securities Act.

The information in this report is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, any locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction and it does not constitute an offer of or an invitation by or on behalf of, Valmet, or any other person, to purchase any securities.

 

 

Further information, please contact:

Pekka Rouhiainen, Director, Investor Relations, Valmet, tel. +358 10 672 0020

Kari Saarinen, CFO, Valmet, tel. +358 50 317 1830

 

 

VALMET

 

Kari Saarinen

CFO

 

Pekka Rouhiainen

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 2020 were approximately EUR 3.7 billion. Our 14,000 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

 

Follow Valmet IR on Twitter www.twitter.com/valmetir

 

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