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Metso's Financial Statements Review January 1 - December 31, 2012: Continued growth and an improved result in 2012

Metso's Financial Statements Review January 1 - December 31, 2012: Continued 
growth and an improved result in 2012 
HELSINKI, FINLAND -- (Marketwire) -- 02/07/13 --  Metso Corporation's
stock exchange release on February 7, 2013 at 12:00 a.m. local time 
We will arrange two news conferences, one for the media and another
for investors and analysts, in Helsinki today. Both events will take
place at Metso
Group Head Office, Fabianinkatu 9 A, Helsinki,
Finland. A press conference in
Finnish for the media will be arranged
at 1:30 p.m. - 2.15 p.m. and the news
conference in English for
investors and analysts will be arranged at 15:00 EET / Helsinki time
(08:00 EST / New York, 13:00 GMT / London, 14:00 CET / Paris). The
news conference can also be followed through a conference call and
live webcast,
details at the end of this release. 
This is a summary of Metso's 2012 Financial Statements Review.
Complete report
is attached to this release as a pdf-file and is also
available at www.metso.com/investors. 
Figures in brackets, unless otherwise stated, refer to the comparison
period,
i.e. the same period last year. 
Highlights of 2012 
* New orders worth EUR 6,865 million were received during 2012 (EUR
7,961 million). Orders received by the services business increased 5
percent and were EUR 3,264 million, i.e. 49 percent of all orders
received (EUR 3,100 million and 40%). 
* Net sales increased 13 percent from 2011 and were EUR 7,504
million (EUR 6,646 million). Services business net sales increased 11
percent and totaled EUR 3,174 million, i.e. 44 percent of total net
sales (EUR 2,871 million and 45%). 
* Earnings before interest, tax, and amortization (EBITA), before
non-recurring items, increased 9 percent and were EUR 684 million,
i.e. 9.1 percent of net sales (EUR 629 million and 9.5%). 
* Non-recurring expenses were EUR 36.0 million (EUR 5.1 million),
mainly related to capacity adjustment measures. 
* Earnings per share of EUR 2.49 (EUR 2.38). 
* Free cash flow was EUR 257 million (EUR 375 million). 
* The Board proposes a dividend of EUR 1.85 per share, i.e. 74
percent of earnings per share (EUR 1.70 and 71% of earnings per
share). 
Highlights of the last quarter of 2012 
* New orders in October-December totaled EUR 1,699 m
illion (EUR
1,313 million). Orders received increased in all reporting segments.
Orders received by the services business increased strongly, by 11
percent, and were EUR 741 million, i.e. 45 percent of all orders
received (EUR 669 million and 54%). 
* Net sales remained similar to the comparison period, at EUR 2,098
million  (EUR 2,074 million). Our services business net sales were up
5 percent and totaled EUR 870 million, accounting for 42 percent of
total net sales (EUR 829 million and 41%). 
* Earnings before interest, tax, and amortization (EBITA), before
non-recurring items, decreased 3 percent and were EUR 196 million,
i.e. 9.3 percent of net sales (EUR 202 million and 9.7%). 
* Earnings per share of EUR 0.49 (EUR 0.81). 
* Free cash flow was EUR 69 million (EUR 45 million). 
Guidance for financial performance during 2013 
Based on the current economic situation, market outlook, and our
order backlog
for 2013, as well as foreign exchange rates remaining
similar to those in December 2012, we estimate that in 2013 our EBITA
before non-recurring items
will be at around 2012 levels and our net
sales at 2012 level or slightly below. 
Metso's President and CEO Matti Kaehkoenen's comments on 2012: 
2012 was another year of growth and improved results for Metso. Our
operating
environment was somewhat challenging, as economic growth
slowed in some of our
main markets, such as China, which was
reflected in our customers' decision-making on large capital
projects. Despite this, our order intake during 2012 was good, thanks
to smaller projects and services business. We met our goal of growing
our services business by more than 10 percent, which is another
strong
achievement. Actively developing our services capabilities and
offering continues to be our top priority, and will help us to grow
the services business
further in 2013 and beyond. In addition to
top-line growth, we also improved our profit and return on capital
employed during 2012. 
Looking at our businesses, activity in the mining sector is expected
to remain
largely unchanged at the level seen in late 2012.
Construction is seeing stable
demand, while good activity in oil and
gas continues to support Automation. We
expect some large new pulp
projects to go ahead during 2013, but the paper and
board machine
market continues to be quiet. 
Our aim for 2013 is clear. We will focus on securing and enhancing
our competitiveness and continue to utilize growth opportunities in
various customer
industries to add value for all of our stakeholders. 


 
Metso's key figures
                                  Q4/   Q4/ Change % Q1-Q4/ Q1-Q4/ Change %
 EUR million                     2012  2011            2012   2011
---------------------------------------------------------------------------
 Orders received                1,699 1,313       29  6,865  7,961      -14
---------------------------------------------------------------------------
 Orders received of services      741   669       11  3,264  3,100        5
 business
---------------------------------------------------------------------------
    % of orders received (1))      45    54              49     40
---------------------------------------------------------------------------
 Order backlog at end of period                       4,515  5,310      -15
---------------------------------------------------------------------------
 Net sales                      2,098 2,074        1  7,504  6,646       13
---------------------------------------------------------------------------
 Net sales of services business   870   829        5  3,174  2,871       11
---------------------------------------------------------------------------
    % of net sales (1))            42    41              44     45
---------------------------------------------------------------------------
 Earnings before interest, tax
 and amortization (EBITA) and
 non-recurring items            195.9 202.1       -3  684.3  628.5        9
---------------------------------------------------------------------------
    % of net sales                9.3   9.7             9.1    9.5
---------------------------------------------------------------------------
 Operating profit               149.5 188.5      -21  598.5  571.8        5
---------------------------------------------------------------------------
    % of net sales                7.1   9.1             8.0    8.6
---------------------------------------------------------------------------
 Earnings per share, EUR         0.49  0.81      -40   2.49   2.38        5
---------------------------------------------------------------------------
 Free cash flow                    69    45       53    257    375      -31
---------------------------------------------------------------------------
 Return on capital employed
 (ROCE) before taxes, %                                19.6   18.4
---------------------------------------------------------------------------
 Equity to assets ratio at end of                      40.5   39.8
 period, %
---------------------------------------------------------------------------
 Gearing at end of period, %                           14.2   12.2
---------------------------------------------------------------------------

 
(1)() )Excluding Valmet Automotive 
Short-term outlook 
Market development 
The global economic situation, together with demand in our customer
industries,
are largely unchanged from the last quarter of 2012.
There are some signs of
positive development in the US and China,
which could potentially support customer industries in the second
half of 2013. Stable capacity utilization rates and the need to
increase operational efficiency are continuing to support
our
services businesses. 
We expect underlying demand in the mining market to remain at the
good level
seen in late 2012. Due to expected high utilization rates
at mines, and our large installed equipment base stronger services
presence, we expect demand for
our mining services to remain
excellent. Demand for construction equipment is
projected to remain
flat and be satisfactory in the Asia-Pacific region. In Brazil, we
expect the market to continues active. We anticipate that demand
in
Europe and North America will stay at current relatively low
levels going forward. Demand for our construction industry services
is expected to remain
satisfactory. 
Demand for our process automation systems and flow control products
and services
is expected to remain good. Strong demand in the oil and
gas industry is expected to offset continuing softness in the pulp
and paper industry. 
The market for pulp mills is expected to remain satisfactory, with
good demand
for rebuilds and services. Demand for papermaking lines is
expected to remain
weak. Capacity utilization rates in the paper and
board industry may decline
somewhat, although the outlook for
services is good. Demand for power plants
that use renewable energy
sources and for related services is expected to remain
satisfactory. 
Metso is a global supplier of technology and services to customers in
the process industries, including mining, construction, pulp and
paper, power,  and
oil and gas. Our 30,000 professionals based in
over 50 countries deliver sustainability and profitability to
customers worldwide. Expect results. www.metso.com ,
www.twitter.com/metsogroup 
Metso Corporation 


 
Harri Nikunen
CFO
 
Juha Rouhiainen
VP, Investor Relations

 
Invitation to news conferences for media, investors and analysts 
Metso will arrange two news conferences in Helsinki today; 
* A press conference in Finnish for the media will be arranged at
1:30 p.m. - 2.15 p.m. 
* A news conference in English for investors and analysts will be
arranged at 15:00 EET / Helsinki (08:00 EST / New York, 13:00 GMT /
London, 14:00 CET / Paris) 
Both events will take place at Metso Group Head Office, Fabianinkatu
9 A, Helsinki, Finland. 
A news conference in English can also be followed through a
conference call and
live webcast at www.metso.com/IRwebcasts from
3:00 p.m. onwards. Questions are
accepted during the event via the
conference call only. 
Due to the live webcast, we kindly ask those attending to be present
5 minutes
prior to the start of the event. 
Conference call details 
Conference call participants are requested to dial in five minutes
before the
scheduled time at: 


 
US: +1 877 491 0064
other countries: +44 20 7162 0077
access code: 927 187.

 
A replay of the call will be available until February 21, 2013 on the
following
phone numbers: 


 
US: +1 954 334 0342
other countries: +44 20 7031 4064
access code: 927 187.

 
Audio file (mp3) and a transcript of the event will be made available
for downloading at www.metso.com/IRwebcasts on Monday, February 11,
2013 the latest. 
The presentation material for the event will be accessible after the
publication
of financial statements on February 7, 2012 at
www.metso.com/Investors at approximately 12 noon EET. 
Welcome 


 
Distribution:
NASDAQ OMX Helsinki Ltd
Media
www.metso.com

 
Metso_financial_statements_review_2012:
http://hugin.info/3017/R/1676315/546337.pdf 
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants
that: 
(i) the releases contained herein are protected by copyright and
other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein. 
Source: Metso Corporation via Thomson Reuters ONE 
[HUG#1676315] 
For 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
 
 
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