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

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

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 million (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 Kähkönen'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

EUR million                          Q4/   Q4/ Change % Q1-Q4/ Q1-Q4/ Change %
                                    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  195.9 202.1       -3  684.3  628.5        9
amortization (EBITA) and
non-recurring items
 % 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)                         19.6   18.4
before taxes, %
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

For further information, please contact:

Matti Kähkönen, 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 

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

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