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Metso Corporation's Interim Review January 1 - September 30, 2011


October 27, 2011 - HELSINKI, FINLAND



Metso's strong performance continued

Metso Corporation's stock exchange release on October 27, 2011 at 12:00a.m.local time

Metso will hold two news conferences in Helsinki today, on Thursday,October27, 2011. The press conference for media in Finnish will be arranged at1:30p.m. - 2:15 p.m. Finnish time. The news conference with live webcast andconference call for investors and analysts in English will be arranged at03:00p.m. Finnish time. Both events will take place at Metso Group Head Office,Fabianinkatu 9 A, Helsinki, Finland (details at the end of this release).

This is a summary of Metso's January - September 2011 Interim Review andthecomplete report is attached as a pdf-file to this release and is alsoavailableon our website at www.metso.com/investors.

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

Highlights of the third quarter of 2011


* Strong performance continued in all our businesses and all financial
key measurements improved.
* New orders worth EUR 1,918 million were received in July-September,
i.e. 36 percent more than in the comparison period (EUR 1,409
million). Orders received by the services business increased and were
EUR 717 million, i.e. 39 percent of all orders received (EUR 672
million and 48%).
* Net sales increased 18 percent on the comparison period, and were EUR
1,561 million (EUR 1,325 million). Our services business net sales
totaled EUR 711 million and accounted for 48 percent of total net
sales (EUR 615 million and 47%).
* Earnings before interest, tax and amortization (EBITA), before non-
recurring items increased 27 percent and were EUR 163.0 million, i.e.
10.4 percent of net sales (EUR 128.6 million and 9.7%).
* Earnings per share were EUR 0.63 (EUR 0.45).
* Free cash flow was EUR 213 million (EUR 122 million).

Metso's President and CEO Matti Kähkönen comments on the thirdquarter:

All of our reporting segments received a higher number of new orders forequipment and services than in the comparison period, and the share of netsalesfor our services business was greater than ever before. The global economicturmoil was not evident in the operations of our customer industries in thethird quarter; rather the general demand continued to be positive in bothemerging and developed markets. Nevertheless, we are carefully monitoringthedevelopment of our market environment.

Our net sales grew organically 18 percent in July-September on thecomparisonperiod, and our profitability was solid thanks to the high delivery volumesandour good capacity utilization rates. Despite the high volume of deliveries,ournet working capital was kept well under control. We can also be pleasedwith ourgood cash flow for the quarter. In addition, our earnings per shareincreased40 percent from the comparison period and were EUR 0.63.

We keep our guidance for this year unchanged and estimate that our netsales in2011 will grow by around 15 percent and that our profitability (EBITAmarginbefore non-recurring items) will improve compared to 2010. Assuming thatthegrowth in the global economy will not be disturbed and the development inourcustomer industries remains at current levels, we are confident that ourrecord-high order backlog, which contains approximately EUR 2.8 billion in ordersfordelivery in 2012 and our strong balance sheet give us a solid startingpoint forthe year ahead.

Metso's key figures

 EUR million Q3/ Q3/ Change Q1-Q3/ Q1-Q3/ Change 2011 2010 % 2011 2010 % 2010 Net sales 1,561 1,325 18 4,572 3,865 18 5,552 Net sales of 711 615 16 2,042 1,738 17 2,453services business % of net sales 48 47 47 46 45 Earnings beforeinterest, tax andamortization(EBITA) and non- 163.0 128.6 27 426.4 341.2 25 491.0recurring items % of net sales 10.4 9.7 9.3 8.8 8.8 Operating profit 149.4 103.5 44 383.3 313.0 22 445.2 % of net sales 9.6 7.8 8.4 8.1 8.0 Earnings per share, 0.63 0.45 40 1.57 1.21 30 1.71EUR Orders received 1,918 1,409 36 6,648 4,446 50 5,944 Orders received of 717 672 7 2,431 2,000 22 2,637services business Order backlog at 5,926 4,144 43 4,023end of period Free cash flow 213 122 75 330 321 3 435 Return on capitalemployed (ROCE) 16.6 13.0 13.5before taxes,annualized, % Equity to assetsratio at end of 38.4 37.2 38.1period, % Gearing at end of 13.8 21.3 15.0period, %

Short-term outlook

During July-September, the demand was healthy in most of our customerindustrieswith certain variability by customer industry and geographic area. Weestimatethat in the emerging markets the operating environment continues to begood. Theuncertainty in the euro zone, the budget deficit in the United States, theavailability of financing and fluctuations in the exchange rates may,however,slow down market activity during the rest of 2011 and in the early part of2012. We anticipate that even in a case of a slowdown in western economies,mostof our customer industries will continue to utilize their capacity at agood orsatisfactory level supporting our services business.

Metal prices have come down from the peak levels of the early part of theyear,but remain still relatively high. The activity level for quotations forequipment and projects from mining companies has been excellent. We expectthemining market to be at a good level for the rest of the year and in theearlypart of 2012. However, a potential further tightening of availability offinancing and a continued decline in metal prices may have a negativeimpact onthe demand for new equipment. Due to the expected high utilization rates ofmines and our large installed equipment base, we expect demand for ourminingservices to continue excellent.

In the Asia-Pacific region and Brazil, economic growth continues andinfrastructure construction projects are maintaining demand forconstructionequipment at a good level. We anticipate that demand for equipment used inaggregates processing by the construction industry in Europe and in NorthAmerica will stay at the current relatively low level going forward. Weestimatethat demand for our services for the construction industry will remainsatisfactory.

Demand for power plants that utilize renewable energy sources is expectedtocontinue satisfactory in 2011 and in the early part of 2012. There iscontinuousneed to replace old energy sources and build new capacity. Several Europeancountries and the United States have published targets to increase the useofrenewable energy and this is expected to support demand for our power plantsolutions fuelled by biomass and recycled waste. However, the pendingpoliciesover subsidy mechanisms for renewable energy are estimated to have a keyimpacton investment decisions. Demand for the power plant services business isexpected to be good.

We estimate that demand for our automation products will continue to begoodthis year and early next year, while we anticipate the activity from thepulpand paper industry to somewhat slow down. We expect the demand for ourautomation solution services to continue excellent.

Demand for paper, board and tissue lines is expected to be satisfactory in2011and in the early part of 2012. Capacity utilization rates in the paper andboardindustry may fall somewhat, yet keep the demand for our services at a goodlevel.

We expect the market for pulp mills to slow down after recent large projectorders. The demand for rebuilds and services is expected to continue goodeventhough lower pulp prices and lower capacity utilization rates may stabilizethedemand.

We expect the demand for metal and solid waste recycling equipment to besatisfactory. Demand for recycling equipment services is expected tostabilizeas the production utilization rates in the steel industry have started toslowdown.

As earlier, we estimate that our net sales in 2011 will grow by around 15percent and that our profitability (EBITA margin before non-recurringitems)will improve compared to 2010. Our estimate is based on Metso's developmentinJanuary-September and on our order backlog, which contains orders worthaboutEUR 1.8 billion for delivery in 2011.

Assuming that the growth in the global economy will not be disturbed andthedevelopment in our customer industries remains at current levels, we areconfident that our record-high order backlog, which contains approximatelyEUR2.8 billion in orders for delivery in 2012, and our strong balance sheetgive usa solid starting point for the year ahead.

The estimates for our financial performance in 2011 and 2012 are based onMetso's current market outlook and business scope as well as on foreignexchangerates similar to those of September 2011.

Helsinki, October 27, 2011

Metso Corporation's Board of Directors

Metso is a global supplier of sustainable technology and services formining,construction, power generation, automation, recycling and the pulp andpaperindustries. We have about 29,000 employees in more than 50 countries.www.metso.com

Invitation to news conferences

Metso will hold two news conferences in Helsinki on Thursday, October 27,2011

 * The press conference for media in Finnish will be arranged at 1:30 p.m. - 2:15 p.m. Finnish time * The news conference with live webcast and conference call for investors and analysts in English will be arranged at the following local times:

 * 03:00 p.m. EEST (Helsinki) * 01:00 p.m. BST (London) * 02:00 p.m. CEST (Paris) * 08:00 a.m. EDT (New York)

Both events will take place at Metso Group Head Office, Fabianinkatu 9 A,Helsinki, Finland.

The news conference in English can also be followed through a live webcastatwww.metso.com/investors or through a simultaneously arranged conferencecall.Due the live webcast, we are kindly asking those attending the newsconferencestarting at 3:00 p.m. EEST, to be present 5 minutes prior the start of theevent.

Conference call details

Conference call participants are requested to dial in a few minutes priorto thestart of the teleconference

 * US: +1 334 323 6201 * other countries: +44 20 7162 0025 or * +44 20 7162 0077. * access code: 885200

A replay will be available for 14 days until November 10, 2011 on thefollowingphone numbers:

 * US: +1 954 334 0342 * other countries: +44 20 7031 4064 * access code 885200

After the news conference there will be an audio file (mp3) available fordownloading and at the latest on Friday, October 28, a transcript of theeventat www.metso.com/investors. The presentation material will be availableafterthe publishing of the Interim Review at www.metso.com/Investors.

You are most welcome to participate in these events.


It should be noted that certain statements herein which are not historicalfacts, including, without limitation, those regarding expectations forgeneraleconomic development and the market situation, expectations for customerindustry profitability and investment willingness, expectations for companygrowth, development and profitability and the realization of synergybenefitsand cost savings, and statements preceded by "expects", "estimates","forecasts"or similar expressions, are forward-looking statements. These statementsarebased on current decisions and plans and currently known factors. Theyinvolverisks and uncertainties which may cause the actual results to materiallydifferfrom the results currently expected by the company.

Such factors include, but are not limited to:

(1) general economic conditions, including fluctuations in exchange ratesandinterest levels, which influence the operating environment andprofitability ofcustomers and thereby the orders received by the company and their margins

(2) the competitive situation, especially significant technologicalsolutionsdeveloped by competitors

(3) the company's own operating conditions, such as the success ofproduction,product development and project management and their continuous developmentandimprovement

(4) the success of pending and future acquisitions and restructuring.


Metso Corporation

Harri Nikunen

CFO

Juha Rouhiainen

VP, Investor Relations


Distribution:

NASDAQ OMX Helsinki Ltd

Media

www.metso.com

Interim_Review_Q3_2011:http://hugin.info/3017/R/1558520/481615.pdf

This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright andother applicable laws; and

(ii) they are solely responsible for the content, accuracy andoriginality of the information contained therein.

Source: Metso Corporation via Thomson Reuters ONE

[HUG#1558520]

Further information, please contact:

Matti Kahkonen
President and CEO
Metso Corporation
tel. +358 20 484 3000

Harri Nikunen
CFO
Metso Corporation
tel. +358 20 484 3010

Juha Rouhiainen
VP, Investor Relations
Metso Corporation, tel.
+358 20 484 3253

MarketWire

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