Metso Corporation's stock exchange release on October 24, 2024, at 09:00 a.m.
EEST
Figures in brackets refer to the corresponding period in 2023, unless otherwise
stated.
Third quarter 2024 in brief
· Overall market activity remained at the previous quarter's level; a few
large mining projects were initiated
· Orders received increased 3% to EUR 1,226 million (EUR 1,191 million);
equipment +9% and services -1%
· Sales declined 12% to EUR 1,160 million (EUR 1,319 million); equipment -20%
and services -5%
· Adjusted EBITA was EUR 196 million, or 16.9% of sales (EUR 213 million, or
16.1%)
· Operating profit was EUR 178 million, or 15.3% of sales (EUR 189 million, or
14.3%)
· Discontinued operations' result included a one-off charge of EUR 250 million
related to the termination of the waste-to-energy business
· Cash flow from operations was EUR -19 million (EUR 161 million), including
EUR 275 million negative impact related to the waste-to-energy business
January-September 2024 in brief
· Orders received declined 7% to EUR 3,749 million (EUR 4,020 million)
· Sales declined 11% to EUR 3,591 million (EUR 4,049 million)
· Adjusted EBITA declined 9% to EUR 601 million, or 16.7% of sales (EUR 662
million, or 16.4%)
· Operating profit declined to EUR 561 million, or 15.6% of sales (EUR 604
million, or 14.9%)
· For continuing operations, earnings per share were EUR 0.46 (EUR 0.49).
Earnings per share were EUR 0.21 (EUR 0.49), including the one-off impact from
discontinued operations.
· Cash flow from operations was EUR 290 million (EUR 333 million), including
the one-off EUR 275 million negative impact.
President and CEO Pekka Vauramo:
The third quarter saw market activity similar to that of the second quarter.
Lower order intake in previous periods resulted in a decline in the Group's
sales. However, our dedicated efforts to improve profitability over the past
years are reflected in the resilient adjusted EBITA margin of 16.9 percent.
During the quarter, a couple of large mining projects progressed as expected,
and we booked approximately EUR 170 million worth of new equipment orders
related to these projects. As a result, orders in the Minerals segment grew by 5
percent, and total orders for the Group increased by 3 percent compared to the
same period last year. The Minerals segment's services orders also grew when
excluding the impact of currency fluctuations. In the Aggregates segment, demand
remained subdued, and orders were slightly below the comparison period.
Sales in the Aggregates segment decreased by eight percent from the comparison
period. Nevertheless, the segment's adjusted EBITA margin remained robust at
16.1 percent. In the Minerals segment, sales decreased by 13 percent from the
previous year, while the segment's profitability remained strong, with an
adjusted EBITA margin rising to 18.3 percent of sales.
During the quarter, we continued to be active with bolt-on acquisitions, signing
agreements to acquire Jindex, as well as Diamond Z and Screen Machine
Industries. Jindex is a valve and process flow control specialist and it will
further strengthen our capacity to provide more comprehensive slurry handling
solutions for the mining industry. The acquisition of Diamond Z enhances our
mobile aggregates equipment offerings for the infrastructure recycling markets,
while Screen Machine Industries expands our portfolio in the North American
mobile crushing and screening markets. In early October, we also agreed to
acquire the remaining shares of our long-term partner, Swiss Tower Mills
Minerals AG (STM), in which we previously held a 15% minority stake. This
acquisition represents an investment in energy-efficient comminution technology;
vertical grinding mill solutions is a segment with promising future trends.
Moving forward, we expect market activity to remain stable in the short term. In
Aggregates, the North American mobile equipment market continues to be
challenging. In the Minerals segment, we expect the activity related to copper
to gradually improve.
As this is my final earnings report at Metso, it's time to thank all my
colleagues, our customers, and shareholders for the excellent cooperation and
support over the past six years. I am confident that this great company will
continue to develop and reach new heights. I wish my successor Sami and all
Metsonites continued success and prosperity in the years to come.
Market outlook
Metso expects that the market activity in both Minerals and Aggregates will
remain at the current level.
In its previously published outlook, Metso expected the market activity in both
Minerals and Aggregates to remain at the current level.
According to the company's disclosure policy, Metso's market outlook describes
the expected sequential development of market activity, adjusting for
seasonality, during the following six-month period using three categories:
improve, remain at the current level, or decline.
Key figures
EUR million Q3/202 Q3/202 Change Q1-Q3/2 Q1-Q3/2 Change 2023
4 3 % 024 023 %
Orders received 1,226 1,191 3 3,749 4,020 -7 5,252
Orders received by 668 677 -1 2,184 2,274 -4 2,955
services business
% of orders received 54 57 - 58 57 - 56
Order backlog 3,007 3,179 -5 2,951
Sales 1,160 1,319 -12 3,591 4,049 -11 5,390
Sales by services 674 710 -5 2,092 2,133 -2 2,891
business
% of sales 58 54 - 58 53 - 54
Adjusted EBITA 196 213 -8 601 662 -9 887
% of sales 16.9 16.1 - 16.7 16.4 - 16.5
Operating profit 178 189 -6 561 604 -7 805
% of sales 15.3 14.3 - 15.6 14.9 - 14.9
Earnings per share, 0.15 0.14 7 0.46 0.49 -6 0.65
continuing operations,
EUR
Cash flow from -19 161 - 290 333 -13 550
operations
Gearing, % 47.2 32.6 - 47.2 32.6 - 33.8
Personnel at end of 17,061 17,069 0 17,134
period
Audiocast and conference call details
An audiocast and a conference call for analysts and investors will be arranged
today at 1:00 p.m. EEST.
The audiocast can be followedat
the company's website (https://www.metso.com/corporate/investors/financials/inter
im-review/). A recording and a transcript will be available at the same webpage
after the event has finished.
The teleconference can be accessed by registering on the link below.
https://palvelu.flik.fi/teleconference/?id=50048708
The complete Interim Report for January-September 2024 is available as an
attachment to this release.
Further information, please contact:
Juha Rouhiainen, Vice President, Investor Relations, Metso Corporation,
tel. +358 20 484 3253,
email: juha.rouhiainen(a)metso.com (juha.rouhiainen@metso.com)
Distribution:
Nasdaq Helsinki Ltd
Main media
www.metso.com
Metso is a frontrunner in sustainable technologies, end-to-end solutions and
services for the aggregates, minerals processing and metals refining industries
globally. We improve our customers' energy and water efficiency, increase their
productivity, and reduce environmental risks with our product and process
expertise. We are the partner for positive change.
Headquartered in Espoo, Finland, Metso employs over 17,000 people in close to 50
countries and sales for 2023 were about EUR 5.4 billion. The company is listed
on the Nasdaq Helsinki. metso.com, x.com/metsoofficial