The new Metso-Outotec business – set to launch in Q2 2020 – will be a leading global company in process technology, equipment and services serving the aggregates, minerals and metals industries.
Metso's Flow Control business will become an independent listed company to be renamed Neles.
Publishing its review for the first half of 2019, Metso said that market activity in the Minerals and Flow Control segments is expected to remain at the current high level in both the equipment and services businesses.
From April to June 2019, the value of orders received by Metso increased by 2% to €869m from €855m in April-June 2018. Sales grew by 16% to €903m from €776m in the corresponding period in 2018.
Operating profit in April-June improved to €114m or 12.6% of sales (€86m or 11.1% of sales the same period last year).
For the full first six months of 2019, orders received increased 10% to €1,883m (€1,714m in H1 2018). Sales grew 17%, totalling €1,739m (H1 2018: €1,490m). Operating profit was €214m or 12.3% of sales (€167m or 11.2%).
Metso president and CEO Pekka Vauramo commented: "We continued to perform well and made good progress during the second quarter. Activity in our end markets remained healthy and is shown in the good order intake for both Minerals and Flow Control.
"In addition to volume growth, we continue to show higher operational leverage with improving profitability in both segments. This proves that the internal work done across the businesses is generating the targeted results."
He added that the McCloskey acquisition in Canada, which is expected to close in the fourth quarter, will expand Metso's offering of mobile crushing and screening equipment and enable the company to better meet the demands of a diverse customer base in the aggregates industry.
Referring to the creation of the new Metso-Outotec and Neles businesses, Vauramo said: "We are excited about the unique opportunities that this transaction will create. The Metso Outotec combination will enable us to drive sustainable growth together with our complementary offering of high-quality technology, in equipment and services, and leverage our extensive global presence, strong services network and large installed base. On the other hand, Neles will be able to capitalise on both organic and inorganic growth opportunities, thanks to its strong product portfolio and service offering as well as best-in-class profitability."
