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Press Release: Metso's Half-Year Review January 1 - June 30, 2018

26 Jul 2018 6:00 am
   Metso's Half-Year Review January 1 - June 30, 2018 
 
   Metso Corporation, Stock Exchange Release, July 26, 2018 at 09:00 a.m. 
EEST 
 
 
 
 
 
   This is a summary of Metso's January 1 - June 30, 2018 Half-Year 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 2017, unless 
otherwise stated. 
 
   April-June 2018 in brief 
 
 
   -- Healthy activity in all markets 
 
   -- Orders received increased 14%, or 22% in constant currencies, to EUR 853 
      million (749 million) 
 
   -- Services orders grew 7%, or 15% in constant currencies, to EUR 463 
      million (431 million) 
 
   -- Sales grew 15%, or 23% in constant currencies, and totaled EUR 776 
      million (675 million) 
 
   -- Services sales grew 10%, or 18% in constant currencies, and totaled EUR 
      442 million (403 million) 
 
   -- Adjusted EBITA was EUR 91 million, or 11.7% of sales (70 million, or 
      10.4%) 
 
   -- Operating profit (EBIT) up 45%, totaling EUR 86 million, or 11.1% of 
      sales (60 million, or 8.9%) 
 
   -- Earnings per share were EUR 0.38 (0.24) 
 
   -- Free cash flow was EUR 21 million (4 million) 
 
 
 
   January-June 2018 in brief 
 
 
   -- Orders received increased 16%, or 23% in constant currencies, to EUR 
      1,712 million (1,482 million) 
 
   -- Services orders grew 8%, or 16% in constant currencies, to EUR 954 
      million (882 million) 
 
   -- Sales grew 13%, or 20% in constant currencies, and totaled EUR 1,490 
      million (1,322 million) 
 
   -- Services sales grew 10%, or 18% in constant currencies, and totaled EUR 
      864 million (786 million) 
 
   -- Adjusted EBITA was EUR 176 million, or 11.8% of sales (136 million, or 
      10.3%) 
 
   -- Operating profit (EBIT) up 40%, totaling EUR 167 million, or 11.2% of 
      sales (119 million, or 9.0%) 
 
   -- Earnings per share were EUR 0.71 (0.47) 
 
   -- Free cash flow was EUR 23 million (43 million) 
 
 
   Key figures 
 
 
 
 
EUR million                                                   Q2/2018  Q2/2017  Change %  H1/2018  H1/2017  Change %   2017 
Orders received                                                   853      749        14    1,712    1,482        16   2,982 
Orders received by the services business                          463      431         7      954      882         8   1,717 
 % of orders received                                              54       58                 56       60                58 
Order backlog at the end of the period                                                      1,601    1,411        13   1,439 
Sales                                                             776      675        15    1,490    1,322        13   2,699 
Sales of the services business                                    442      403        10      864      786        10   1,595 
 % of sales                                                        57       60                 58       59                59 
Earnings before interest, tax and amortization (EBITA), 
 adjusted                                                          91       70        30      176      136        29     244 
 % of sales                                                      11.7     10.4               11.8     10.3               9.0 
Operating profit (EBIT)                                            86       60        45      167      119        40     218 
 % of sales                                                      11.1      8.9               11.2      9.0               8.1 
Earnings per share, EUR                                          0.38     0.24        58     0.71     0.47        51    0.68 
Free cash flow                                                     21        4       425       23       43       -47     158 
Return on capital employed (ROCE) before taxes, annualized, 
 %                                                                                           16.8     11.1              10.3 
Equity-to-assets ratio at the end of the period, %                                           47.0     45.9              44.5 
Net gearing at the end of the period, %                                                      13.7      7.5               1.8 
Personnel at the end of the period                                                         12,708   11,788         8  12,037 
 
 
   Market outlook 
 
   The outlook represents expected sequential market development with a 
rolling six-month view. Our market conditions are expected to develop as 
follows: 
 
 
   -- Growth in demand to increase for Minerals equipment 
 
   -- Growth in demand to remain stable for Minerals services 
 
   -- Growth in demand to level off for Flow Control 
 
 
   Previous market outlook (published April 25, 2018) 
 
   Our market conditions are expected to develop as follows: 
 
 
   -- Growth in demand to remain stable for Minerals equipment and services 
 
   -- Growth in demand to remain stable for Flow Control equipment and services 
 
 
   Interim President and CEO Eeva Sipilä: 
 
   We saw continued healthy market activity across our businesses and were 
particularly pleased to see the project activity in the mining equipment 
market increase during the second quarter. The solid growth in both 
equipment and services is a clear indication of our strong position in 
our key markets. The recent increased uncertainty relating to global 
trade is something we are obviously watching closely. However, we 
currently estimate the direct impact of the tariffs enforced so far on 
Metso to be limited. 
 
   Going forward, we will continue to focus on operational excellence as 
well as on implementing Metso's other strategic fundamentals. We are 
moving forward with our Digital Strategy and currently successfully 
piloting comminution analytics at customer sites in North America, 
Africa, and Australia. We are also taking R&D plans forward across our 
portfolio to strengthen our offering further. Also, our work on adjacent 
acquisitions supporting our growth strategy continues. Overall, while we 
have a lot of areas of further improvement ahead of us, I am encouraged 
by the results we have achieved during the first six months of the year. 
 
   Audiocast and conference call 
 
   Metso's Interim President and CEO Eeva Sipilä will present the 
financial results in a webcast and conference call for analysts and 
investors, held in English, today at 1 p.m. EEST. Webcast is viewable at 
www.metso.com/latestreports. 
 
   Conference call participants are requested to dial in five minutes 
before the event on: 
 
   United States: +1 929 477 0338 
 
   other countries: +44 (0)330 336 9104 
 
   The confirmation code is 800906. A recording and a transcript will be 
available at www.metso.com/latestreports after the event has finished. 
 
 
 
 
 
   For further information, please contact: 
 
   Eeva Sipilä, Interim President and CEO & CFO, Metso Corporation, 
tel. +358 20 484 3010 
 
   Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel. +358 20 
484 3253 
 
 
 
   Metso Corporation 
 
   Eeva Sipilä 
 
   CFO 
 
   Juha Rouhiainen 
 
   VP, Investor Relations 
 
   Distribution: 
 
   Nasdaq Helsinki 
 
   Media 
 
   www.metso.com 
 
   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 2.7 billion in 2017. Metso employs over 12,000 people in more than 
50 countries. 
 
   www.metso.com,  www.twitter.com/metsogroup 
 
   Metso_2018_Half_Year_review_Final: 
http://hugin.info/3017/R/2207343/858229.pdf 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Metso Corporation via Globenewswire 
 
 
  http://www.metso.com 
 

(END) Dow Jones Newswires

July 26, 2018 02:00 ET (06:00 GMT)
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