Metso's Financial Statements Review January 1 - December 31, 2018

Metso's Financial Statements Review January 1 - December 31, 2018
Metso Corporation, Stock Exchange Release, February 6, 2019 at 9:00 a.m. EET


This is a summary of Metso's January 1 - December 31, 2018 Financial Statements Review. 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 2017, unless otherwise stated.

October-December 2018 in brief

• Market activity continued to be healthy
• Orders received increased 38% in constant currencies
• Reported orders received increased 32% to EUR 904 million (684 million)'
• Sales increased 32% in constant currencies
• Reported sales increased 27% and totaled EUR 897 million (709 million)
• Adjusted EBITA was EUR 98 million, or 10.9% of sales (64 million, or 9.1%)
• Operating profit (EBIT) was EUR 93 million, or 10.4% of sales (60 million, or 8.4%)
• Earnings per share improved to EUR 0.42 (0.08)
• Free cash flow was EUR 57 million (57 million)
• Two acquisitions were completed: one in the valves business in India and another in the UK related to pyro processing solutions in mining
• Pekka Vauramo started as President and CEO on November 1

January-December 2018 in brief

• Orders received increased 23% in constant currencies
• Reported orders received increased 17% to EUR 3,499 million (2,982 million)
• Sales increased 23% in constant currencies
• Reported sales increased 18% and totaled EUR 3,173 million (2,699 million)
• Adjusted EBITA was EUR 369 million, or 11.6% of sales (244 million, or 9.0%)
• Operating profit (EBIT) totaled EUR 351 million, or 11.1% of sales (218 million, or 8.1%)
• Earnings per share improved to EUR 1.53 (0.68)
• Free cash flow was EUR 146 million (158 million)
• Three acquisitions were completed
• Metso will transition to semi-annual dividend payments. The Board will propose a dividend of EUR 1.20 per share for 2018 (EUR 1.05), of which EUR 0.60 will be paid in May and EUR 0.60 in November 2019

Key figures

EUR million	Q4/2018	Q4/2017	Change %	2018	2017	Change %
Orders received	904	684	32	3,499	2,982	17
Orders received by services business	498	393	27	1,913	1,717	11
% of orders received	55	57		55	58
Order backlog at end of year				1,686	1,439	17
Sales	897	709	27	3,173	2,699	18
Sales by services business	473	412	15	1,773	1,595	11
% of sales	53	58		56	59
Adjusted EBITA	98	64	53	369	244	51
% of sales	10.9	9.1		11.6	9.0
Operating profit (EBIT)	93	60	55	351	218	61
% of sales	10.4	8.4		11.1	8.1
Earnings per share, EUR	0.42	0.08	425	1.53	0.68	125
Free cash flow	57	57	0	146	158	-8
Return on capital employed (ROCE) before taxes, %				16.9	10.3
Equity to assets ratio at end of year, %				47.7	44.5
Net gearing at end of year, %				11.7	1.8
Personnel at end of year				13,150	12,037	9

Market outlook

Metso has changed the structure of its market outlook statement. Going forward, the market outlook will describe the expected sequential development in market activity during the following six-month period. Expected development will be described using three categories: grow, remain at the current level, or decline.

Metso's market outlook:

Market activity in Minerals is expected to continue to grow in both equipment and services business.

Market activity in Flow Control is expected to continue to grow in both equipment and services business.

President and CEO Pekka Vauramo:

We had a strong fourth quarter. Orders received increased in both Minerals and Flow Control year-on-year and sequentially. Our top-line growth was also solid and resulted from improved delivery capability in all businesses. The sales mix continued to tilt towards higher share of equipment than services, which had an effect on our profitability. Most importantly, both our segments grew and improved their profitability year-on-year.

Since joining Metso on November 1, I have been pleased to see the positive developments throughout the company during 2018. The organizational changes made have proven to support the implementation of Metso's profitable growth strategy, and results can be seen in strong volume growth and improved performance across all our seven business areas. I would like to thank Metso personnel who has put a lot of effort into better customer service, capitalizing on organic and inorganic growth opportunities, driving innovations and improving sustainability in our offering and operations.

Going forward, Metso has a solid position to further improve its performance. We are in a strong position to create value for customers, shareholders and other stakeholders. People, technological know-how and global presence are our most important assets and we will continue to leverage them. Working together with our customers opens new business opportunities. I am excited to be part of the Metso team and look forward to working together to start a new chapter for the company.

Audiocast and conference call details

Metso's President and CEO Pekka Vauramo and CFO Eeva Sipilä will present the financial results in an audiocast and a conference call for analysts and investors on the same day at 1:00 p.m. EET. The audiocast can be followed at www.metso.com/latestreports.

A recording and a transcript will be available at the same webpage after the event has finished.

Conference call participants are requested to dial in five minutes before the event on:
United States: +1 631 913 1422
other countries: +44 (0)333 300 0804

The confirmation code for joining the conference call is 71064229#


For further information, please contact:
Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel. +358 20 484 3253                 
                                  
Metso Corporation

Eeva Sipilä
CFO

Juha Rouhiainen
VP, Investor Relations

Distribution:
Nasdaq Helsinki
Media
www.metso.com

Metso is a world-leading industrial company offering equipment and services for the sustainable processing and flow of natural resources in the mining, aggregates, recycling and process industries. With our unique knowledge and innovative solutions, we help our customers improve their operational efficiency, reduce risks and increase profitability.

Metso is listed on the Nasdaq Helsinki in Finland and had sales of about EUR 3.2 billion in 2018. Metso employs over 13,000 people in more than 50 countries.

www.metso.com,  www.twitter.com/metsogroup