Outotec's interim report January-September 2017

OUTOTEC OYJ INTERIM REPORT NOVEMBER 2, 2017 AT 9:00 AM

INTERIM REPORT JANUARY - SEPTEMBER 2017  

Sales and profitability improved, recovery of Metals, Energy & Water still pending

"The minerals and metals processing market is slowly improving. Our order intake in the reporting period increased by 16% and service orders by 10% from last year. The third quarter order intake, however, was lower than last year due to the timing of larger orders. Smaller equipment and service orders continued to increase. Our total sales and service sales increased year on year. In the third quarter, sales grew by 10% and service sales by 13%. Our profitability improved significantly, due to increased sales and reduced fixed costs.

Minerals Processing improved its sales and profitability, and the segment's adjusted EBIT margin reached 10.4% in the third quarter. The Metals, Energy & Water result improved but remained negative. We are continuing to take action to make this segment profitable again. We recently announced our plans to outsource part of the segment's engineering activities, which will bring workforce flexibility.

The demand for most metals is expected to continue strong, and we see many attractive business opportunities. We will continue to further strengthen our capabilities in serving our customers and our large installed base. The timing of large plant orders is, however, still difficult to foresee," summarizes President & CEO Markku Teräsvasara.

Summary of key figures	Q3	Q3			Q1-Q3	Q1-Q3			Q1-Q4
EUR million	2017	2016	%1	%2	2017	2016	%1	%2	2016
Order intake	234.2	274.1	-15	-15	838.8	725.0	16	13	1,007.7
Service order intake	123.5	121.4	2	3	369.4	335.5	10	7	443.3
Order backlog at end of period	973.7	1,029.7	-5	-	973.7	1,029.7	-5	-	1,002.1
Sales	270.4	245.2	10	12	810.3	752.5	8	6	1,057.9
Service sales	119.5	105.3	13	14	329.2	319.6	3	0	447.0
Gross margin, %	24.0	23.5			23.3	24.7			22.1
Adjusted EBIT3	12.6	1.6			16.1	1.7			-23.0
Adjusted EBIT3, %	4.7	0.7			2.0	0.2			-2.2
EBIT	10.6	-1.2			10.6	-14.3			-67.7
EBIT, %	3.9	-0.5			1.3	-1.9			-6.4
Net cash from operating activities	27.2	-23.1			-7.3	-72.7			-84.6
Earnings per share, EUR	0.02	-0.03			-0.02	-0.12			-0.42

¹ Change, %
² Change in comparable currencies, %
³ Excluding restructuring and acquisition-related items and PPA amortizations.

Financial guidance for 2017 reiterated

The guidance for 2017 is based on the current order backlog and market outlook as well as further cost savings.

• Sales are expected to be approximately EUR 1,100 - 1,200 million, and
• Adjusted EBIT* is expected to be approximately 3 - 4%

* Excluding restructuring and acquisition-related items, as well as purchase price allocation amortizations.  

This text is a summary of Outotec's January-September 2017 Interim report. The full report is available as an attachment to this report.

FURTHER INFORMATION

Outotec Oyj

Markku Teräsvasara, CEO
Tel. [phone]

Jari Ålgars, CFO
Tel. [phone]

Rita Uotila, Vice President - Investor Relations
Tel. [phone], mobile [phone]

Format for e-mail addresses: [e-mail]

BRIEFING/TELECONFERENCE

Date: November 2, 2017

Time: 2:00 PM EET

Venue: Outotec House, Rauhalanpuisto 9, Espoo, Finland

Joining the teleconference

To register as a participant for the teleconference and Q&A session, please dial in 5 to 10 minutes before the beginning of the event using the numbers below.

The contact information is gathered for registration purposes only and it is not used for commercial purposes.

Dial in numbers:
Finland [phone]
Sweden [phone]
United Kingdom [phone]
United States [phone]
Confirmation Code: 6217383

DISTRIBUTION

Nasdaq Helsinki
Main media
www.outotec.com

Outotec's interim report January-September 2017

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Source: Outotec Oyj via Globenewswire