The fourth quarter saw vibrant market activity across all the aggregates, mining and recycling plant and linked technology solutions company's divisions. Sales grew 12% to €1,434mn (€1,278mn); orders increased 21% and totalled €1,590mn (€1,310mn). Meanwhile, adjusted EBITA increased 30% to €212mn, or 14.8% of sales (€164mn, or 12.8%), and operating profit increased to €185mn, or 12.9% of sales (€130mn, or 10.2%). Cash flow from operations totalled €212mn (€164mn).
Helsinki. Finland-headquartered Metso Outotec's full-year 2022 sales grew 25% to €5,295mn (€4,236mn), with orders up 11% to €6,024mn (€5,421mn). The company's 2022 adjusted EBITA increased 34% to €731mn, or 13.8% of sales (€547mn, or 12.9%). Operating profit was €504mn, or 9.5% of sales (€425mn, or 10%), including a €150mn non-recurring charge related to the wind-down of the business in Russia booked in the second quarter.
Commenting on the Q4 and full-year 2022 results, Metso Outotec president and CEO Pekka Vauramo said: "We ended last year on a positive note, with high organic order and sales growth and profitability at the same strong level seen in the third quarter. The market activity in the fourth quarter was in line with our earlier expectations and was boosted by a few larger orders for Minerals and Metals. Also, Aggregates (division) saw growth in equipment orders, thanks to the strong North American market and Europe holding up despite some softening. The services business in the Minerals segment continued to see healthy demand, as metal prices and customers' utilisation rates remained high."
Vauramo said Metso Outotec's 12% fourth-quarter sales increase was thanks to all segments executing on their backlogs efficiently. He said the services business growth of 21% reflects the high order intake during previous quarters and easing supply chain challenges. The adjusted EBITA margin remained strong at 14.8%, which is, Vauramo added, just shy of the company's 15% target.
He continued: "Looking at 2022, we are proud of the progress made across the company, despite the challenging market conditions caused by inflation and supply chain constraints. In addition, we exited the Russian market and had to commence a wind-down of our contracts with Russian customers. The customer activity in the other main markets was high, and we were successful in winning new orders, with several of them including a significant amount of Planet Positive products and technologies. The services business saw strong development with 25% sales growth. The impact of active cost and inflation management and other internal efficiency actions became more visible during the second half of the year and resulted in a significant profitability improvement."
Vauramo noted the importance of sustainability in Metso Outotec's customer industries continues to grow, highlighting the company's progress in both its footprint and in helping its customers to meet their targets.
"Sales of Planet Positive products increased 51% to €1.3 billion in 2022. New Planet Positive orders included, for example, technologies for battery metals processing plants to support the global energy transition and electrification. We launched close to 30 new Planet Positive products in 2022, including Geminex, a digital solution that simulates customers' processes safely and enables a reduced carbon footprint and more efficient use of resources. In our own footprint, we completed several energy efficiency and CO2 savings projects that are bringing us closer to our net-zero target. We were also successful in developing our culture and saw both Employee Net Promoter Score (eNPS) and inclusion score improvement throughout the year."
Looking ahead, Vauramo said he expects customer activity to remain at the current level throughout the first half of 2023, thanks to the megatrends relating to electrification and battery metals driving the demand in the minerals and metals markets. He also expects the aggregates markets to hold up well in North America and Europe. "While this outlook is dependent on the development of the global economy, I am confident that Metso Outotec is in a strong position to serve its customers and generate value for all its stakeholders in 2023.".
