Metso's Financial Statements Review January 1 - December 31, 2012: Continued growth and an improved result in 2012
Metso Corporation's stock exchange release on February 7, 2013 at 12:00 a.m. local time
We will arrange two news conferences, one for the media and another for
investors and analysts, in Helsinki today. Both events will take place at Metso
Group Head Office, Fabianinkatu 9 A, Helsinki, Finland. A press conference in
Finnish for the media will be arranged at 1:30 p.m. - 2.15 p.m. and the news
conference in English for investors and analysts will be arranged at 15:00 EET /
Helsinki time (08:00 EST / New York, 13:00 GMT / London, 14:00 CET / Paris). The
news conference can also be followed through a conference call and live webcast,
details at the end of this release.
This is a summary of Metso's 2012 Financial Statements 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 2012
* New orders worth EUR 6,865 million were received during 2012 (EUR 7,961
million). Orders received by the services business increased 5 percent and
were EUR 3,264 million, i.e. 49 percent of all orders received (EUR 3,100
million and 40%).
* Net sales increased 13 percent from 2011 and were EUR 7,504 million (EUR
6,646 million). Services business net sales increased 11 percent and totaled
EUR 3,174 million, i.e. 44 percent of total net sales (EUR 2,871 million and
45%).
* Earnings before interest, tax, and amortization (EBITA), before non-
recurring items, increased 9 percent and were EUR 684 million, i.e. 9.1
percent of net sales (EUR 629 million and 9.5%).
* Non-recurring expenses were EUR 36.0 million (EUR 5.1 million), mainly
related to capacity adjustment measures.
* Earnings per share of EUR 2.49 (EUR 2.38).
* Free cash flow was EUR 257 million (EUR 375 million).
* The Board proposes a dividend of EUR 1.85 per share, i.e. 74 percent of
earnings per share (EUR 1.70 and 71% of earnings per share).
Highlights of the last quarter of 2012
* New orders in October-December totaled EUR 1,699 million (EUR 1,313
million). Orders received increased in all reporting segments. Orders
received by the services business increased strongly, by 11 percent, and
were EUR 741 million, i.e. 45 percent of all orders received (EUR 669
million and 54%).
* Net sales remained similar to the comparison period, at EUR 2,098 million
(EUR 2,074 million). Our services business net sales were up 5 percent and
totaled EUR 870 million, accounting for 42 percent of total net sales (EUR
829 million and 41%).
* Earnings before interest, tax, and amortization (EBITA), before non-
recurring items, decreased 3 percent and were EUR 196 million, i.e. 9.3
percent of net sales (EUR 202 million and 9.7%).
* Earnings per share of EUR 0.49 (EUR 0.81).
* Free cash flow was EUR 69 million (EUR 45 million).
Guidance for financial performance during 2013
Based on the current economic situation, market outlook, and our order backlog
for 2013, as well as foreign exchange rates remaining similar to those in
December 2012, we estimate that in 2013 our EBITA before non-recurring items
will be at around 2012 levels and our net sales at 2012 level or slightly below.
Metso's President and CEO Matti Kähkönen's comments on 2012:
2012 was another year of growth and improved results for Metso. Our operating
environment was somewhat challenging, as economic growth slowed in some of our
main markets, such as China, which was reflected in our customers' decision-
making on large capital projects. Despite this, our order intake during 2012 was
good, thanks to smaller projects and services business. We met our goal of
growing our services business by more than 10 percent, which is another strong
achievement. Actively developing our services capabilities and offering
continues to be our top priority, and will help us to grow the services business
further in 2013 and beyond. In addition to top-line growth, we also improved our
profit and return on capital employed during 2012.
Looking at our businesses, activity in the mining sector is expected to remain
largely unchanged at the level seen in late 2012. Construction is seeing stable
demand, while good activity in oil and gas continues to support Automation. We
expect some large new pulp projects to go ahead during 2013, but the paper and
board machine market continues to be quiet.
Our aim for 2013 is clear. We will focus on securing and enhancing our
competitiveness and continue to utilize growth opportunities in various customer
industries to add value for all of our stakeholders.
Metso's key figures
Q4/ Q4/ Change % Q1-Q4/ Q1-Q4/ Change %
EUR million 2012 2011 2012 2011
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Orders received 1,699 1,313 29 6,865 7,961 -14
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Orders received of services 741 669 11 3,264 3,100 5
business
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% of orders received (1)) 45 54 49 40
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Order backlog at end of period 4,515 5,310 -15
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Net sales 2,098 2,074 1 7,504 6,646 13
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Net sales of services business 870 829 5 3,174 2,871 11
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% of net sales (1)) 42 41 44 45
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Earnings before interest, tax and
amortization (EBITA) and non-
recurring items 195.9 202.1 -3 684.3 628.5 9
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% of net sales 9.3 9.7 9.1 9.5
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Operating profit 149.5 188.5 -21 598.5 571.8 5
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% of net sales 7.1 9.1 8.0 8.6
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Earnings per share, EUR 0.49 0.81 -40 2.49 2.38 5
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Free cash flow 69 45 53 257 375 -31
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Return on capital employed (ROCE)
before taxes, % 19.6 18.4
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Equity to assets ratio at end of 40.5 39.8
period, %
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Gearing at end of period, % 14.2 12.2
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(1)() )Excluding Valmet Automotive
Short-term outlook
Market development
The global economic situation, together with demand in our customer industries,
are largely unchanged from the last quarter of 2012. There are some signs of
positive development in the US and China, which could potentially support
customer industries in the second half of 2013. Stable capacity utilization
rates and the need to increase operational efficiency are continuing to support
our services businesses.
We expect underlying demand in the mining market to remain at the good level
seen in late 2012. Due to expected high utilization rates at mines, and our
large installed equipment base stronger services presence, we expect demand for
our mining services to remain excellent. Demand for construction equipment is
projected to remain flat and be satisfactory in the Asia-Pacific region. In
Brazil, we expect the market to continues active. We anticipate that demand in
Europe and North America will stay at current relatively low levels going
forward. Demand for our construction industry services is expected to remain
satisfactory.
Demand for our process automation systems and flow control products 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. Demand for papermaking lines is expected to remain
weak. Capacity utilization rates in the paper and board industry may decline
somewhat, although the outlook for services is good. Demand for power plants
that use renewable energy sources and for related services is expected 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 deliver
sustainability and profitability to customers worldwide. Expect results.
www.metso.com , www.twitter.com/metsogroup
For further information, please contact:
Matti Kähkönen, 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
Metso Corporation
Harri Nikunen
CFO
Juha Rouhiainen
VP, Investor Relations
Invitation to news conferences for media, investors and analysts
Metso will arrange two news conferences in Helsinki today;
* A press conference in Finnish for the media will be arranged at 1:30 p.m. -
2.15 p.m.
* A news conference in English for investors and analysts will be arranged at
15:00 EET / Helsinki (08:00 EST / New York, 13:00 GMT / London, 14:00 CET /
Paris)
Both events will take place at Metso Group Head Office, Fabianinkatu 9 A,
Helsinki, Finland.
A news conference in English can also be followed through a conference call and
live webcast at www.metso.com/IRwebcasts from 3:00 p.m. onwards. Questions are
accepted during the event via the conference call only.
Due to the live webcast, we kindly ask those attending to be present 5 minutes
prior to the start of the event.
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: 927 187.
A replay of the call will be available until February 21, 2013 on the following
phone numbers:
US: +1 954 334 0342
other countries: +44 20 7031 4064
access code: 927 187.
Audio file (mp3) and a transcript of the event will be made available for
downloading at www.metso.com/IRwebcasts on Monday, February 11, 2013 the latest.
The presentation material for the event will be accessible after the publication
of financial statements on February 7, 2012 at www.metso.com/Investors at
approximately 12 noon EET.
Welcome
Distribution:
NASDAQ OMX Helsinki Ltd
Media
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