Metso will arrange a results audio cast today at 1:00 p.m. EEST. The audio cast is viewable at www.metso.com/latestreports. The event will feature a simultaneous conference call allowing participants to ask questions.
This is a summary of Metso's Interim Review January 1 -September 30, 2017. The complete report is attached to this release and is also available at www.metso.com/latestreports.
Figures in brackets refer to the corresponding period in 2016, unless otherwise stated.
Third-quarter 2017 in brief (compared to the third quarter of 2016)
- Market activity remained healthy
- Orders received increased 30 percent and totaled EUR 817 million (EUR 628 million). Services orders increased 15 percent to EUR 486 million (EUR 422 million)
- Sales increased 5 percent to EUR 673 million (EUR 638 million). Services sales increased 7 percent and totaled EUR 440 million (EUR 413 million)
- Adjusted EBITA was EUR 43.0 million, or 6.4 percent of sales (EUR 77.2 million, or 12.1%), including EUR 33.3 million charges related to mining projects in the backlog
- Adjusted EBITA excluding EUR 33.3 million charges was EUR 76.3 million or 11.3 percent of sales
- Operating profit (EBIT) totaled EUR 39.4 million (EUR 62.9 million)
- Earnings per share totaled EUR 0.13 (EUR 0.24)
- Free cash flow was EUR 58 million (EUR 106 million)
January-September 2017 in brief (compared to corresponding period of 2016)
- Orders received increased 12 percent and totaled EUR 2,298 million (EUR 2,052 million). Services orders increased 13 percent to EUR 1,462 million (EUR 1,299 million)
- Sales increased 5 percent to EUR 1,996 million (EUR 1,910 million). Services sales increased 4 percent and totaled EUR 1,308 million (EUR 1,261 million)
- Adjusted EBITA was EUR 179.4 million, or 9.0 percent of sales (EUR 210.2 million, or 11.0%)
- Adjusted EBITA excluding EUR 33.3 million charges booked in the third quarter was EUR 212.7 million or 10.7 percent of sales
- Operating profit (EBIT) totaled EUR 158.6 million (EUR 182.6 million)
- Earnings per share totaled EUR 0.60 (EUR 0.70)
- Free cash flow was EUR 101 million (EUR 242 million)
Market outlook
Metso has changed the way it comments on its market outlook. Going forward, our commentary will focus on the expected sequential market development with a rolling six months' view on the segment level (Minerals and Flow Control).
Our market conditions are expected to develop as follows:
- Remain stable for Minerals equipment and services
- Remain stable for Flow Control equipment and services
President and CEO Nico Delvaux
Our order intake was good in the third quarter, growing 30 percent year-on-year. Even when excluding the large mining equipment order booked during the quarter, we saw a healthy order increase across our businesses, which is reflective of the current market situation. However, our performance during the quarter was clearly not satisfactory. Especially disappointing was that we needed to book 33 million euros for cost overruns and write-downs related to mining projects in the backlog. Going forward, we will need to focus on our delivery capability and improve our operational excellence.
Since I took over as President and CEO in the beginning of August, we have been making some changes to our organization and to the way we operate. Our aim is to improve the accountability of our businesses and to speed up decision-making, the implementation of our growth plans, and our response to market changes. I am convinced that these changes will help us to get the most out of the improved market conditions and deliver profitable growth going forward.
