Metso's restated financial information for 2017 (IFRS 15 and Flow Control's services business)
Metso's restated financial information for 2017 (IFRS 15 and Flow Control's services business)
Metso's restated financial information for 2017 (IFRS 15 and Flow Control's services business)
Metso Corporation, stock exchange release, April 16, 2018 at 9:45 a.m. EEST
As of January 1, 2018, Metso has adopted the IFRS 15 Revenue from Contracts with Customers standard by using the full retrospective method. The Interim Review for January-March 2018 will be published according to the new standard, and the comparison period for 2017 will be restated accordingly.
Under IFRS 15, reported sales is reduced by the amount of late delivery penalties, which up until now have been expensed. Accordingly, cost of goods sold (COGS) is affected positively by the same amount. Gross profit and other income statement items as well as the balance sheet will be unchanged. The full-year impact in the consolidated statement of income for 2017 was a EUR 8 million decrease in sales and cost of goods sold (COGS).
In line with the organizational changes, Metso has also revised the reporting principles regarding the Flow Control segment's services business as of January 1, 2018. As a result, Flow Control's day-to-day sales through distributors in North America have been excluded from the services business definition.
The following tables reflect the impact of the IFRS 15 transition and the change in the Flow Control segment's services business reporting for quarterly figures and segment information in 2017.
IFRS 15 impact on sales and COGS in 2017
| Metso Group | Restated | Adjustment | Reported |
| EUR million | 1-12/2017 | 1-12/2017 | |
| Sales | 2,699 | -8 | 2,706 |
| Cost of goods sold (COGS) | -1,968 | 8 | -1,976 |
| Gross profit | 731 | 0 | 731 |
Sales of the services business in 2017
| Restated | Reported | |||||||
| EUR million | 1-3/ 2017 | 1-6/ 2017 | 1-9/ 2017 | 1-12/ 2017 | 1-3/ 2017 | 1-6/ 2017 | 1-9/ 2017 | 1-12/ 2017 |
| Minerals | 325 | 673 | 1,017 | 1,368 | 325 | 673 | 1,017 | 1,368 |
| % of sales | 66 | 67 | 67 | 66 | 66 | 67 | 66 | 66 |
| Flow Control | 57 | 113 | 166 | 228 | 97 | 195 | 291 | 399 |
| % of sales | 36 | 36 | 36 | 36 | 61 | 63 | 62 | 63 |
| Metso total | 383 | 786 | 1,183 | 1,595 | 423 | 868 | 1,308 | 1,767 |
| % of sales | 59 | 59 | 60 | 59 | 65 | 66 | 66 | 65 |
Orders received by the services business in 2017
| Restated | Reported | |||||||
| EUR million | 1-3/ 2017 | 1-6/ 2017 | 1-9/ 2017 | 1-12/ 2017 | 1-3/ 2017 | 1-6/ 2017 | 1-9/ 2017 | 1-12/ 2017 |
| Minerals | 386 | 756 | 1,136 | 1,474 | 386 | 756 | 1,136 | 1,474 |
| % of sales | 69 | 67 | 64 | 64 | 69 | 67 | 64 | 64 |
| Flow Control | 65 | 126 | 188 | 243 | 110 | 220 | 326 | 423 |
| % of sales | 38 | 36 | 36 | 36 | 64 | 63 | 63 | 63 |
| Metso total | 451 | 882 | 1,324 | 1,717 | 496 | 976 | 1,462 | 1,897 |
| % of sales | 62 | 60 | 58 | 58 | 68 | 66 | 64 | 64 |
The restated figures are unaudited, and they have been rounded to the nearest million. Consequently, the sum of individual figures might differ from the presented total figure. Full restated financial information for 2017 is attached.
Metso Corporation
Eeva Sipilä
Interim President and CEO & 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 2.7 billion in 2017. Metso employs over 12,000 people in more than 50 countries.
www.metso.com, www.twitter.com/metsogroup
For further information, please contact:
Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel. +358 20 484 3253