Margin improved in a slightly softer market environment

Margin improved in a slightly softer market environment 
HELSINKI, FINLAND -- (Marketwired) -- 04/23/13 --  Metso
Corporation's stock exchange release on April 23, 2013 at 12:00 a.m.
local time 
We will arrange a news conference on Metso's January-March 2013
interim review
for the media, investors and analysts, in Helsinki
today. The event takes place
at Metso Group Head Office, Fabianinkatu
9 A, Helsinki, Finland. A News conference in English will be arranged
at 15:00 EEST / Helsinki time (08:00 EDT
/ New York, 13:00 BST /
London, 14:00 CEST / Paris). The news conference can
also be followed
through a live webcast at www.metso.com/irwebcasts and a conference
call, details at the end of this release. Questions are accepted
via
conference call only. 
This is a summary of Metso's January-March 2013 Interim 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 the first quarter of 2013 
* New orders worth EUR 1,584 million were received in January-March
(EUR     1,920 million). Orders received by the services business were
at a similar 
level to those in the first quarter of 2012 and
totaled EUR 873 million, 
i.e. 57 percent of all orders received
(EUR 881 million and 48%). 
* Net sales were EUR 1,590 million (EUR 1,755 million). Net sales
in the     services business were at the level of comparison period,
EUR 727 million 
and accounted for 47 percent of Metso's net sales
(EUR 721 million and 43%). 
* Earnings before interest, tax and amortization (EBITA), before
non-recurring items, were EUR 132 million, i.e. 8.3 percent of net
sales (EUR 141 million     and 8.0%). 
* Earnings per share were EUR 0.48 (EUR 0.56). 
* Free cash flow was EUR 74 million (EUR 116 million). 
* The Board decided to start a strategy study relating to a
possible demerger 
of Metso. 
Guidance for financial performance during 2013 unchanged 
Based on the current economic situation, the market outlook, our
order backlog
for 2013, and foreign exchange rates remaining similar
to those at the end of
March, we estimate that our EBITA before
non-recurring items i
n 2013 will be at around 2012 levels and our net
sales at the 2012 level or slightly below. 
Metso's President and CEO Matti Kaehkoenen comments on the first
quarter: 
The first quarter was two-fold for Metso. Firstly, as expected,
demand for new
equipment and projects remained similar to that seen
in the previous quarter and below that in the first quarter of 2012.
Secondly, and even more importantly,
Metso's flexible business model
and focus on its services business yielded a
good operating result
(EBITA) and an improved EBITA margin for the quarter, despite net
sales coming in a little slower than in early 2012. The Mining
and
Construction and Automation segments recorded a strong
improvement in their margins, and we expect these segments to perform
well going forward. Pulp, Paper
and Power, however, was weak, as had
been expected. The challenges in this segment are known and we will
continue our actions to improve profitability in
the business. The
results of this work, together with our slightly more optimistic view
of the segment's customer industries, are expected to be seen in
better performance later this year. 
In March, the Board launched a strategy study to review the
possibilities of
separating Metso into two independent listed
companies. This work is proceeding
at a good pace and according to
the planned milestones. We are confident that
this project will be in
the best interests of our customers, personnel, shareholders and
other stakeholders. 
Metso's key figures 


 
                                             Q1/2013 Q1/2012 Change %  2012
 EUR million
---------------------------------------------------------------------------
 Orders received                               1,584   1,920      -18 6,865
---------------------------------------------------------------------------
 Orders received of services business            873     881       -1 3,264
---------------------------------------------------------------------------
    % of orders received (1))                     57      48             49
---------------------------------------------------------------------------
 Order backlog at end of period                4,558   5,407      -16 4,515
---------------------------------------------------------------------------
 Net sales                                     1,590   1,755       -9 7,504
---------------------------------------------------------------------------
 Net sales of services business                  727     721        1 3,174
---------------------------------------------------------------------------
    % of net sales (1))                           47      43             44
---------------------------------------------------------------------------
 Earnings before interest, tax and amortization
 (EBITA) and non-recurring items               131.5   141.2       -7 687.5
---------------------------------------------------------------------------
    % of net sales                               8.3     8.0            9.2
---------------------------------------------------------------------------
 Operating profit                              119.2   129.0       -8 601.7
---------------------------------------------------------------------------
    % of net sales                               7.5     7.4            8.0
---------------------------------------------------------------------------
 Earnings per share, EUR                        0.48    0.56      -14  2.46
---------------------------------------------------------------------------
 Free cash flow                                   74     116      -36   257
---------------------------------------------------------------------------
 Return on capital employed (ROCE) before taxes,
 %                                              15.1    17.8           19.6
---------------------------------------------------------------------------
 Equity to assets ratio at end of period, %     36.9    36.3           40.5
---------------------------------------------------------------------------
 Net gearing at end of period, %                13.5     7.6           14.2
---------------------------------------------------------------------------
(1) )Excluding Valmet Automotive

 
Short-term outlook 
Market development 
The global economic situation and demand in our customer industries
have remained largely unchanged during the early part of the year.
Some initial positive signs have been seen in the US and China, which
may have a positive
impact on the activity of our customer industries
in the second half of 2013.
Stable capacity utilization levels and
the need to increase production efficiency will continue to support
demand for our services business. 
We expect underlying demand in the mining market to remain at the
good level
seen during the first quarter of the year. Due to expected
high utilization rates at mines, our large installed equipment base,
and stronger services presence, we expect demand for our mining
services to remain excellent. 
Demand for construction equipment is projected to strengthen somewhat
in emerging markets, especially China. In developed markets, we
anticipate demand
to remain at current relatively low levels going
forward. Demand for our constructio
n industry services is expected to
remain satisfactory. 
Demand for our process automation and flow control solutions 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. Structural changes in the paper
industry are likely
to continue and the demand for papermaking lines
is expected to remain weak and
the outlook for services good. Demand
for recovery boilers for the pulping industry is projected to
continue stable, whereas shale gas will continue to
have a negative
impact on market of renewable energy solutions. All in all, we
expect
the demand for power plants and for related services 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 contribute to
sustainability and deliver profitability
to customers worldwide. Metso's shares
are listed on the NASDAQ OMX
Helsinki Ltd. 
www.metso.com, www.twitter.com/metsogroup 
Metso Corporation 
Harri Nikunen 
CFO 
Juha Rouhiainen 
VP, Investor Relations 
Invitation to news conference for media, investors and analysts 
Metso will arrange a news conference for investors and analysts in
English in
Helsinki on Tuesday, April 23, 2013 at 15:00 EEST /
Helsinki time (08:00 EDT / New York, 13:00 BST / London, 14:00 CEST /
Paris) 
The event will take place at Metso Group Head Office, Fabianinkatu 9
A, Helsinki, Finland. 
This conference can also be followed through a live webcast at
www.metso.com/IRwebcasts and a conference call from 3:00 p.m.
onwards. Questions
are accepted during the event via the conference
call only. 
Due to live webcast, we kindly ask those attending to be present 5
minutes prior
to the start of the event. Representatives of the media
are also welcome to attend. Also, requests for same day interviews
are accepted, please contact Milla Kivinen, Communications officer,
tel. +358 50 317 3500. 
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: 927 189 
A replay of the call will be available until May 7, 2013 on the
following phone
numbers: 
* US: +1 954 334 0342 
* other countries: +44 20 7031 4064 
* access code 927 189 
An audio file (mp3) and a transcript of
the event will be made available for
downloading at
www.metso.com/IRwebcasts on Thursday, April 25, 2013 the latest. 
The presentation material will be available after the publication of
the Interim
Review on April 23, 2013 at www.metso.com/Investors at
approximately 12.00 noon
local time/EEST. 
Welcome! 
Distribution: 
NASDAQ OMX Helsinki Ltd 
Media 
www.metso.com 
Interim Review Q1 2013: http://hugin.info/3017/R/1695270/557827.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#1695270] 
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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