HELSINKI, Finland, Oct. 21, 2016 (GLOBE NEWSWIRE) -- Metso will arrange a results audiocast today at 13:00 EEST (5:00 EST, 10:00 UTC, 11:00 CET). The audiocast is viewable at www.metso.com/latestreports . A simultaneous conference call will be arranged, allowing participants to ask questions. A recording of the event is available at the earliest after the event has finished and a transcript will be available for downloading on the same page.
This is a summary of Metso's January-September 2016 Interim Review. The complete report is attached to this release as a pdf-file and is also available at www.metso.com/latestreports .
Figures in brackets refer to the corresponding period in 2015, unless otherwise stated.
Third quarter 2016 in brief
- Minerals' equipment orders increased 19 percent while services orders decreased 3 percent.
- Oil & gas-related valve orders weakened in the Flow Control segment.
- Orders received totaled EUR 628 million (EUR 647 million), of which EUR 422 million (EUR 436 million) were services orders.
- Net sales totaled EUR 638 million (EUR 680 million), of which services accounted for EUR 413 million (EUR 435 million).
- Adjusted EBITA totaled EUR 77 million, or 12.1 percent of net sales (EUR 92 million, 13.6%).
- Operating profit totaled EUR 63 million, or 9.9 percent of net sales (EUR 76 million, 11.1%).
- Free cash flow was healthy at EUR 106 million (EUR 117 million).
Outlook for 2016 (changes in brackets)
Metso's overall trading conditions in 2016 will be somewhat weaker compared to 2015. Demand for our products and services is expected to develop as follows:
- remain weak for mining equipment and satisfactory for mining services
- remain satisfactory for aggregates equipment and services
- remain satisfactory for Flow Control products related to customers' new investments and has changed to satisfactory (previously: good) for Flow Control services, with increased uncertainty in the oil & gas market.
At the end of September 2016, our backlog for the remainder of 2016 totaled approximately EUR 680 million, but due to current market conditions we expect some of these deliveries to be postponed into 2017. Internal efficiency actions will continue to improve competitiveness and they will result in negative net adjustment items of approximately EUR 30 million in 2016. Capital expenditure excluding acquisitions is expected to be lower than in 2015. Net financial costs are expected to be on the same level as in 2015.
President and CEO Matti Kähkönen:
Demand in the mining market in the third quarter remained at the same level compared to the previous quarter. Activity in the capital equipment business was stable; despite the fact that orders increased year-on-year, we do not foresee a rapid recovery from the current low level. Mining services orders were on the same level seen during the past 12 months. A slight improvement could be seen in the aggregates business, where sales in some markets, such as the Nordic countries, India and the US, have been growing this year. In Flow Control we saw weakness in the oil & gas sector demand during the quarter. This resulted in lower valve orders for customers' capex projects. Services orders in Flow Control were relatively stable. Despite challenges in the market place, we have been able to maintain our profitability and financial position at a healthy level, thanks to internal efficiency improvement actions that we will continue to implement during the fourth quarter. Our EBITA margin of 12.1% was the highest seen so far this year and our free cash flow was good at EUR 106 million.
Key figures
| EUR million | Q3/2016 | Q3/2015 | Change % | Q1-Q3/ 2016 | Q1-Q3/ 2015* | Change % | 2015* | ||||||||
| Orders received | 628 | 647 | -3 | 2,052 | 2,207 | -7 | 2,965 | ||||||||
| Orders received by the services business | 422 | 436 | -3 | 1,299 | 1,438 | -10 | 1,879 | ||||||||
| % of orders received | 67 | 67 | 63 | 65 | 63 | ||||||||||
| Order backlog at the end of the period | 1,305 | 1,289 | 1 | 1,268 | |||||||||||
| Net sales | 638 | 680 | -6 | 1,910 | 2,169 | -12 | 2,923 | ||||||||
| Net sales of the services business | 413 | 435 | -5 | 1,261 | 1,359 | -7 | 1,840 | ||||||||
| % of net sales | 65 | 64 | 66 | 63 | 63 | ||||||||||
| Earnings before interest, tax and amortization (EBITA), adjusted | 77 | 92 | -16 | 210 | 262 | -20 | 356 | ||||||||
| % of net sales | 12.1 | 13.6 | 11.0 | 12.1 | 12.2 | ||||||||||
| Personnel at the end of the period | 11,647 | 12,940 | -10 | 12,619 | |||||||||||
| * The Process Automation Systems (PAS) business was divested on April 1, 2015. The January-September 2015 and full-year 2015 comparison numbers for Metso Group and Flow Control including the PAS business are presented in the tables section. | |||||||||||||||
IFRS figures
| EUR million | Q3/2016 | Q3/2015 | Change % | Q1-Q3/ 2016 | Q1-Q3/ 2015 | Change % | 2015 | ||
| Operating profit | 63 | 76 | -17 | 183 | 488* | -63 | 555* | ||
| % of net sales | 9.9 | 11.1 | 9.6 | 21.9* | 18.7* | ||||
| Earnings per share, EUR | 0.24 | 0.29 | -17 | 0.70 | 2.60* | -73 | 2.95* | ||
| Free cash flow | 106 | 117 | -9 | 242 | 282 | -14 | 341 | ||
| Return on capital employed (ROCE) before taxes, annualized, % | 11.2 | 26.5* | 25.7* | ||||||
| Equity-to-asset ratio at the end of the period, % | 48.1 | 46.4 | 48.3 | ||||||
| Net gearing at the end of the period, % | 5.1 | 15.0 | 10.6 | ||||||
| * Including a capital gain on the disposal of PAS. | |||||||||
Metso is a world leading industrial company serving the mining, aggregates, recycling, oil, gas, pulp, paper and process industries. We help our customers improve their operational efficiency, reduce risks and increase profitability by using our unique knowledge, experienced people and innovative solutions to build new, sustainable ways of growing together.
Our products range from mining and aggregates processing equipment and systems to industrial valves and controls. Our customers are supported by a broad scope of services and a global network of over 80 service centers and about 6,400 services professionals. Metso has an uncompromising attitude towards safety.
Metso is listed on the NASDAQ OMX Helsinki, Finland, and had net sales of about EUR 2.9 billion in 2015. Metso employs over 12,000 persons in more than 50 countries. Expect results.
www.metso.com , twitter.com/metsogroup
For further information, please contact: Matti Kähkönen, President and CEO, Metso Corporation, tel. +358 20 484 3000 Eeva Sipilä, 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 OMX Helsinki Ltd Media www.metso.com
Conference call details Conference call participants are requested to dial in five minutes before the scheduled time on: United States: +1 719 457 1036 other countries: +44 20 3043 2002
The confirmation code for joining the conference call is 2183391.
A recording of the event is available at www.metso.com/latestreports at the earliest after the event has finished and a transcript of the event will be available.
Metso Corporation Interim Report Q3 2016 http://hugin.info/3017/R/2050479/766997.pdf
