Metso Corporation's Financial Statements Review, January 1 - December 31, 2010

Another successful year for Metso

 Highlights of 2010

  * New orders worth EUR 5,944 million were received in 2010, i.e. 36 percent
    more than in the previous year (EUR 4,358 million in 2009).

  * At the end of 2010, the order backlog was 18 percent higher than at the end
    of December 2009, amounting to EUR 4,023 million (EUR 3,415 million on
    December 31, 2009).

  * Net sales increased 11 percent from the previous year, and were EUR 5,552
    million (EUR 5,016 million in 2009).

  * Earnings before interest, tax and amortization (EBITA), before non-recurring
    items, were EUR 491.0 million, i.e. 8.8 percent of net sales (EUR 399.0
    million and 8.0% in 2009).

  * Operating profit (EBIT) was EUR 445.2 million, i.e. 8.0 percent of net sales
    (EUR 293.6 million and 5.9% in 2009).

  * EBIT includes EUR 11.8 million in positive non-recurring items (EUR 64.7
    million in negative non-recurring items in 2009).

  * Earnings per share were EUR 1.71 (EUR 1.06 in 2009).

  * Free cash flow was EUR 435 million (EUR 717 million in 2009).

  * Return on capital employed (ROCE) before taxes was 13.5 percent (10.0% in
    2009).

  * The Board proposes a dividend of EUR 1.55 per share equaling to 91 percent
    of earnings per share (EUR 0.70 and 66% of earnings per share in 2009).



Highlights of the last quarter of 2010

  * New orders worth EUR 1,498 million were received in October-December, i.e.
    10 percent more than in the comparison period (EUR 1,365 million in
    Q4/2009).

  * Net sales increased 25 percent on the comparison period, and were EUR 1,687
    million (EUR 1,353 million in Q4/2009).

  * Earnings before interest, tax and amortization (EBITA), before non-recurring
    items, were EUR 149.8 million in October-December, i.e. 8.9 percent of net
    sales (EUR 88.0 million and 6.5% in Q4/2009).

  * Operating profit (EBIT) was EUR 132.2 million, i.e. 7.8 percent of net sales
    (EUR 55.0 million and 4.1% in Q4/2009).

  * The EBIT includes EUR 3.1 million in negative non-recurring items (EUR 21.8
    million in negative non-recurring items in Q4/2009).

  * Earnings per share were EUR 0.50 (EUR 0.18 in Q4/2009).

Metso's President and CEO Jorma Eloranta expresses his satisfaction with the
achievements last year. "We made good progress on many fronts: we saw clear
recovery in our orders, we maintained strong cash flow throughout the year in
spite of growing business volumes and all of our profitability indicators
improved, too. I am especially pleased with our services business which grew
strongly and represented 45 percent of our business. Likewise we saw the
benefits of our strong presence in emerging markets with one half of our net
sales coming from those growth areas. I appreciate the efforts of our employees
in achieving these good results and want to thank all for making 2010 another
successful year for Metso."



"At an annual level we delivered about EUR 100 million improvement in our
underlying operational performance. This we achieved despite our fourth-quarter
profitability being somewhat hampered by some low margin projects in Paper and
Fiber Technology and by overall increase in our fixed costs. The increase in our
fixed costs was largely driven by our getting prepared for continued growth in
our delivery and order volumes."



"The Board of Directors' dividend proposal of EUR 1.55 per share, reflects not
only our solid financial position but also confidence in Metso's future
performance. At the same time, we are maintaining a strong balance sheet to
develop Metso further."



"Based on the development last year and assuming that the gradual recovery of
the global economy will continue, we estimate that Metso's net sales in 2011
will grow over 10 percent compared to 2010 and EBITA before non-recurring items
will improve," Eloranta notes.



"This year will not be without challenges: there is the fragility of the
economic recovery in certain areas, climbing inflation especially in the
emerging markets, exchange rate fluctuations and tough competition in large pulp
and paper projects to mention a few. On the positive side the outlook in the
Mining business continues to improve and prospects for services across our
businesses remain strong. The past years have clearly proven Metso's agility and
competitiveness. The new Metso Executive Team is ready to take over from March
onwards and I am confident that under Matti Kähkönen's leadership Metso is in a
strong position to deliver continued profitable growth," Eloranta concludes.



Metso's key figures



                                           Q4/   Q4/                        Chan
EUR million                                            Change % 2010  2009
                                           2010  2009                       ge %

Net sales                                  1,687 1 353 25       5,552 5 016 11

Net sales of services business             714   537   33       2,453 2 102 17

   % of net sales                          43    40             45    42


Earnings before interest, tax and
amortization (EBITA) and non-recurring
items
                                           149.8 88.0  70       491.0 399.0 23

   % of net sales                          8.9   6.5            8.8   8.0

Operating profit                           132.2 55.0  140      445.2 293.6 52

   % of net sales                          7.8   4.1            8.0   5.9

Earnings per share, EUR                    0.50  0.18  178      1.71  1.06  61

Orders received                            1,498 1 365 10       5,944 4,358 36

Orders received of services business       637   487   31       2,637 1,937 36

Order backlog at end of period                                  4,023 3,415 18

Free cash flow                             114   268   -57      435   717   -39

Return on capital employed (ROCE) before
taxes, %
                                                                13.5  10.0

Equity to assets ratio at end of period, %                      38.1  35.7

Gearing at end of period, %                                     15.0  32.5







Short-term outlook



There have not been material changes in our market situation since the third
quarter of 2010 and we estimate that the gradual recovery will continue in most
of our customer industries this year. In the emerging markets the outlook
continues strong. The uncertainty caused by the budget deficits in several
European countries and the United States, availability of funding and
fluctuations in the exchange rates may, however, slow down the recovery,
especially in Europe and North America. We anticipate that the improving
capacity utilization rates of our customer industries will support our services
business, and most of our customers are expected to gradually regain their
confidence to invest in existing and new capacity.



Metal prices have continued to increase primarily due to strong demand in China
and India as well as stabilization of the  US economy, together with tight
supply in several metals such as copper and iron ore. The number of quotations
for equipment and projects from mining companies has strongly increased since
the beginning of 2010, especially during the latter half of the year. This has
had a clear positive impact on our orders so far, and we expect stronger
activity in larger projects this year since the industry players have confirmed
significant capital investment programs for the coming years. Due to the
strengthening demand for minerals and our large installed equipment base, we
expect demand for our mining services to continue strong.



In the Asia-Pacific region and Brazil strong economic growth continues and
infrastructure construction projects are maintaining good demand for
construction equipments. We anticipate that demand for equipment used in
aggregates production by the construction industry in Europe and in North
America will gradually start to recover in 2011 thanks to the delayed
replacement cycle but still remain weak. We estimate that demand for our
services business for the construction industry will remain satisfactory.



Demand for power plants that utilize renewable energy sources is expected to be
good in Europe and North America in 2011. Several European countries and the
United States have published targets to increase the use of renewable energy and
this is expected to support demand for our power plant solutions fuelled by
biomass and waste. However, uncertainty in the financial markets and pending
policies over support mechanisms for renewable energy may delay final decisions
in some of the projects under negotiations. Demand for the power plant services
business is expected to be good.



We estimate that demand for our automation products will continue to be good in
2011, as the oil, gas and petrochemical industries increase their investments
due to the improvement in energy prices and demand. Demand for automation
products in the pulp and paper industry is also expected to develop favorably.
Demand for our services business for automation solutions is expected to be
good.



We expect the demand for metal and solid waste recycling equipment to be
satisfactory. Demand for recycling equipment services is expected to continue
improving over the coming quarters as the capacity utilization rates of our
customers' plants and equipment improve.



Demand for new fiber lines, rebuilds and pulp mill services has clearly
recovered from the low levels of the past few years. We expect the fiber line
equipment market to continue to be active in 2011 with a tight competitive
environment for large new projects. Demand for paper and board lines is expected
to be satisfactory and for tissue lines good in 2011. We expect the improved
capacity utilization rates of the paper and board industry to boost the demand
for our services business.



Based on the development in 2010 and assuming that the gradual recovery of the
global economy will continue, we estimate that our net sales in 2011 will grow
over 10 percent compared to 2010 and EBITA before non-recurring items will
improve. Our estimate is based on our order backlog of EUR 4.0 billion at the
end of 2010, which contains orders worth about EUR 3.1 billion for 2011.



The estimates for our financial performance in 2011 are based on Metso's current
market outlook and business scope as well as foreign exchange rates similar to
the end of 2010.



Previous guidance (from January-September 2010 Interim Review, published on
October 28, 2010): "Our orders received for the first nine months of this year
(2010) exceed the net sales for the same period by 15 percent. Based on this and
assuming that the gradual recovery of global economy will continue we estimate
that in 2011 our net sales will grow about 10 percent compared to this year and
EBITA before non-recurring items will improve."





Board of Director's proposal for the use of profit



The Parent Company's distributable funds totaled EUR 1,525,868,957.58 on
December 31, 2010, of which the net profit for the year was EUR 264,850,234.96.



The Board of Directors proposes based on the balance sheet to be adopted for the
financial period ended on December 31, 2010, that a dividend of EUR 1.55 per
share be distributed. The proposed dividend takes into consideration Metso's
strong financial position and dividend policy. Furthermore, it should be noted
that the dividend paid in 2009 was 25 percent of earnings per share because of
the financial market turmoil at that point of time.



The dividend is paid to a shareholder who on the record date April 4, 2011 is
registered as a shareholder in the company's shareholders' register maintained
by Euroclear Finland Ltd. The dividend is paid on April 12, 2011.



All the outstanding shares on the dividend record date will be entitled to a
dividend, except for the own shares held by the Parent Company.





Annual General Meeting 2011



The Annual General Meeting of Metso Corporation will be held at 3:00 p.m. on
Wednesday, March 30, 2011 at the Helsinki Fair Centre (Messuaukio 1, FI-00520
Helsinki).





Helsinki, February 3, 2011

Metso Corporation's Board of Directors







New disclosure procedure



Metso is now adopting the new disclosure procedure enabled by the Standard 5.2b
published by the Finnish Financial Supervision Authority. This is a summary of
Metso's Financial Statements Review for 2010 and the complete report is attached
as a pdf-file to this release and is also available on our website at
www.metso.com/investors.





Invitation to news conferences



Metso will hold two news conferences in Helsinki on Thursday, February 3, 2011.



The press conference for media in Finnish will be arranged at 1:30 p.m. - 2:15
p.m. Finnish time



The news conference with live webcast and conference call for investors and
analysts in English will be arranged at 3:00 p.m. EET (Helsinki) / 1:00 p.m. GMT
(London) / 2:00 p.m. CET (Paris) / 8:00 a.m. EST (New York).



Both events will take place at Metso Group Head Office, Fabianinkatu 9 A,
Helsinki, Finland.



The news conference in English can also be followed through a live webcast at
www.metso.com/investors or through a simultaneously arranged conference call.
Due the live webcast, we are kindly asking those attending the news conference
starting at 3:00 p.m. EET, to be present 5 minutes prior the start of the event.



Conference call details

Conference call participants are requested to dial in a few minutes prior to the
start of the teleconference

· US: +1 334 323 6201

· other countries: +44 20 7162 0025 or +44 20 7162 0077

· please quote: 885192



A replay will be available for 7 days until midnight on February 11, 2011 on the
following phone numbers:

· US: +1 954 334 0342

· other countries: +44 20 7031 4064

· access code: 885192



After the news conference there will be an audio file (mp3) available for
downloading and at the latest on Monday, February 7 also a transcript of the
event at www.metso.com/Investors.



The presentation material will be available after the publishing of Metso
Corporation's Financial Statements 2011 at www.metso.com/Investors.



You are most welcome to participate in these events.





Metso's financial reporting during 2011



The Annual Report will be published in the week starting on March 7, 2011 (week
10). The Interim Review for January - March 2011 will be published on April
29, 2011, the Interim Review for January - June 2011 on July 28, 2011 and the
Interim Review for January - September 2011 on October 27, 2011.



Metso is a global supplier of sustainable technology and services for mining,
construction, power generation, automation, recycling and the pulp and paper
industries. We have about 28,500 employees in more than 50 countries.
www.metso.com



Further information, please contact:

Jorma Eloranta, President and CEO, Metso Corporation, tel. +358 204 84 3000

Olli Vaartimo, CFO, Metso Corporation, tel. +358 204 84 3010

Johanna Henttonen, Vice President, Investor Relations, Metso Corporation, tel.
+358 20 484 3253





It should be noted that certain statements herein which are not historical
facts, including, without limitation, those regarding expectations for general
economic development and the market situation, expectations for customer
industry profitability and investment willingness, expectations for company
growth, development and profitability and the realization of synergy benefits
and cost savings, and statements preceded by "expects", "estimates", "forecasts"
or similar expressions, are forward-looking statements. These statements are
based on current decisions and plans and currently known factors. They involve
risks and uncertainties which may cause the actual results to materially differ
from the results currently expected by the company.

Such factors include, but are not limited to:

1) general economic conditions, including fluctuations in exchange rates and
interest levels, which influence the operating environment and profitability of
customers and thereby the orders received by the company and their margins

(2) the competitive situation, especially significant technological solutions
developed by competitors

(3) the company's own operating conditions, such as the success of production,
product development and project management and their continuous development and
improvement

(4) the success of pending and future acquisitions and restructuring.











Metso Corporation



Olli Vaartimo
CFO



Johanna Henttonen
Vice President, Investor Relations



Distribution:

NASDAQ OMX Helsinki Ltd

Media
www.metso.com