Metso's Interim Review January 1 - March 31, 2017

Metso's Interim Review January 1 - March 31, 2017
Metso Corporation, Stock exchange release, April 25, 2017 at 09:00 a.m. EEST
 
Metso will arrange a results audiocast today at 1:00 p.m. EEST. The audiocast is viewable at www.metso.com/latestreports. A simultaneous conference call will be arranged, allowing participants to ask questions.

This is a summary of Metso's January-March 2017 Interim 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 2016, unless otherwise stated.

First-quarter 2017 in brief (compared to the first quarter of 2016)

Metso's overall trading conditions are expected to be better than in 2016 (previously: slightly better). Demand for our products and services in 2017 is expected to develop as follows:              

      ·  Market activity increased, especially in the services businesses

      ·  Orders received increased 11 percent and totaled EUR 733 million (EUR 663 million). Services orders increased 15 percent to EUR 496 million (EUR 433 million)

      ·  Sales grew 8 percent to EUR 648 million (EUR 601 million). Services sales increased 3 percent and totaled EUR 423 million (EUR 409 million)

      ·  Adjusted EBITA improved to EUR 66.4 million, or 10.2 percent of sales (EUR 55.7 million, or 9.3%)

      ·  Free cash flow was EUR 39 million (EUR 62 million)

      ·  Balance sheet remains strong with net gearing at -4.7 percent (-1.8% at the end of 2016)

       

Outlook for 2017 (changes in brackets)

Metso's overall trading conditions are expected to be better than in 2016 (previously: slightly better). Demand for our products and services in 2017 is expected to develop as follows:              

      ·  Remain weak for mining equipment, while improving to good for mining services
(previously: weak for mining equipment and satisfactory for mining services)

      ·  Remain good for aggregates equipment and services

      ·  Improve to good for Flow Control products related to customers' new investments and services (previously: both were satisfactory)

At the end of March 2017, our backlog for 2017 totaled approximately EUR 1.2 billion. In the current market conditions, we continue to expect some postponements to planned delivery timetables. Negative adjustment items from restructuring programs initiated in 2016 are expected to be EUR 10-15 million. Capital expenditure excluding acquisitions is expected to increase compared to 2016, but to remain below depreciation and amortization.