HELSINKI, Finland, Feb. 6, 2014 (GLOBE NEWSWIRE) -- We will arrange a news conference on Metso's Financial Statements Review for 2013 for the media, investors and analysts, in Helsinki today. The event takes place at Metso Group Head Office, Fabianinkatu 9 A, Helsinki, Finland. A News conference in English will be arranged at 15:00 EEST / Helsinki time (08:00 EDT / New York, 13:00 BST / London, 14:00 CEST / Paris). The news conference can also be followed through a live webcast at www.metso.com/irwebcasts and through a conference call. Questions are accepted via conference call. Details of the event can be found at the end of this release.
This is a summary of Metso's Financial Statements Review for 2013. Complete report is attached to this release as a pdf-file and is also available at www.metso.com/investors.
Figures in brackets refer to the comparison period, i.e. the same period last year, and all figures relate to Metso's continuing operations, unless otherwise stated.
Highlights of 2013
Highlights of the last quarter of 2013
Financial guidance for 2014
Market activity is estimated to remain similar to 2013 but due to EUR 400 million lower opening backlog than one year ago we estimate that our net sales in 2014 will be somewhat below 2013. Continuing cost efficiency actions are expected to support our profitability and we estimate that our 2014 EBITA margin before non-recurring items will be at around 12 percent of net sales.
Metso's President and CEO Matti Kähkönen:
Business activity in our core industries during the last quarter of 2013 remained similar to the level earlier in the year. Mining customers continued to be cautious about new investments throughout the year, while good demand in the oil & gas industry yielded an all-time high annual order intake for our Automation segment. Underlying demand for our services business continued to be good, but was somewhat offset by weaker rebuild activity and destocking during the first half. Lower order intake resulted in a drop in net sales during the last quarter and for the year as a whole. Orders and net sales were both negatively impacted by the strengthening of the euro compared to other currencies during the second half. Given this background, we are pleased that we were able to improve our profitability. Our EBITA margin excluding non-recurring items increased significantly, which resulted from cost efficiency and sales mix improvements across the Group. We do not anticipate any major changes in terms of demand for 2014, and as a result we will push ahead with our global efficiency programs designed to support our profitability.
As a conclusion, I would like to mention our single largest undertaking last year was the demerger of the Pulp, Paper and Power businesses to create Valmet Corporation. This was completed successfully and we are now well on our way to developing Metso into a more integrated and agile company and one that is better able to create value for our stakeholders.
Metso's key figures
|Change %||2013||2012||Change %|
|Orders received of services business||457||494||-7||2,038||2,153||-5|
|% of orders received||52||50||55||51|
|Order backlog at the end of the period||1,927||2,324||-17|
|Net sales of services business||509||550||-7||1,976||2,072||-5|
|% of net sales||50||49||51||48|
|Earnings before interests, tax and amortization (EBITA) and non-recurring items||147||138||6||496||486||2|
|% of net sales||14.4||12.2||12.8||11.4|
|Operating profit *)||108||126||-14||423||458||-8|
|% of net sales||10.6||11.1||11.0||10.7|
|Earnings per share, EUR||0.35||0.36||3||1.59||1.71||-12|
|Free cash flow||224||257|
|Return on capital employed (ROCE) before taxes, %||15.6||18.2|
|Return on equity (ROE), %||15.5||17.4|
|Equity to asset ratio at the end of the period, %||36.9||40.5|
|Net gearing at the end of the period, %||41.6||14.2|
*) The full year 2013 operating profit was negatively impacted by EUR 54 million of non-recurring items (EUR 11 million) and fourth quarter by EUR 33 million (EUR 9 million). Non-recurring items are detailed in the tables section.
Note: Valmet (previously Metso's Pulp, Paper and Power businesses) and Valmet Automotive (previously a Metso subsidiary) are reported in consolidated financial statements for 2013 as discontinued operations (IFRS 5). The post-tax net profit of discontinued operations will be presented as a single figure at the bottom of Metso's income statement. The net assets of discontinued operations are excluded from Metso's balance sheet as of December 31, 2013 and are included in the balance sheet as of December 31, 2012.. Earnings per share for discontinued operations are reported separately from continuing operations, and Metso's equity per share as of December 31, 2013 excludes the net assets of discontinued operations.
We expect demand for mining equipment and projects to be weak. Due to our large installed equipment base and our stronger services presence, we expect demand for our mining services to remain good.
Demand for construction equipment and related services is projected to remain satisfactory.
Demand for our process automation systems is expected to remain satisfactory, whereas demand for flow control products and related services is expected to remain good.
Metso is a leading process performance provider, with customers in the mining,construction,and oil & gas industries. Metso is also known for its advanced automation solutions for pulp, paper and power generation. Our focus is on the continuous development of intelligent solutions that improve sustainability and profitability. Metso's shares are listed on the NASDAQ OMX Helsinki Ltd. Metso employs around 16,000 professionals in 50 countries. Expect results.
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
VP, Investor Relations
Invitation to news conference for investors, analysts and media
Metso will arrange the news conference for media, investors and analysts at Metso Group Head Office, Fabianinkatu 9 A, Helsinki, today, on February 6, 2014 at:
08:00 EST / New York
13:00 GMT / London
14:00 CET / Paris
15:00 EET / Helsinki
This conference can also be followed through a live webcast at www.metso.com/IRwebcasts and a conference call from 15:00 EET onwards. Questions are accepted during the event via conference call.
Due to live webcast, we kindly ask those attending in person 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: 940 040
A replay of the call will be available for two weeks until February 20, 2014 on the following phone numbers:
US: +1 954 334 0342
other countries: +44 20 7031 4064
access code 940 040
An audio file (mp3) and a transcript of the event will be made available for downloading at www.metso.com/IRwebcasts on Monday, February 10, 2014.
The presentation material will be available after the publication of the Financial Statements Review on February 6, 2014 at www.metso.com/investors at approximately 12.00 noon EET.
NASDAQ OMX Helsinki Ltd