Metso's Company Release on July 24, 2009 at 12.00 p.m. local time
Profitability satisfactory. Guidance for 2009 intact.
Highlights of the second quarter of 2009
* New orders worth EUR 1,020 million were received in April-June,
i.e. 41 percent less than in the previous year (EUR 1,740 million
in Q2/08).
* At the end of June, the order backlog was 14 percent lower than
at the end of December 2008, amounting to EUR 3,512 million (EUR
4,088 million at December 31, 2008).
* Net sales decreased by 24 percent, standing at EUR 1,247 million
(EUR 1,633 million in Q2/08).
* Earnings before interest, tax and amortization (EBITA) were EUR
74.7 million, i.e. 6.0 percent of net sales (EUR 166.5 million
and 10.2% in Q2/08).
* Operating profit (EBIT) was EUR 65.9 million, i.e. 5.3 percent of
net sales (EUR 155.2 million and 9.5% in Q2/08).
* Earnings before interest, tax and amortization (EBITA) and
operating profit (EBIT) in April-June, include some EUR 4 million
in non-recurring expenses relating to capacity adjustment
measures.
* Earnings per share were EUR 0.26 (EUR 0.72 in Q2/08).
* Free cash flow was EUR 80 million (EUR 59 million in Q2/08).
* Return on capital employed (ROCE) before taxes was 9.3 percent
(23.4% in Q2/08).
"The overall cautious market sentiment in our customer industries has
continued - with the positive exception of the paper and board
industry in Asia, where we have seen improvement in the past few
months. The recovery in China is partly due to the implemented
stimulus measures. So far it has resulted in several sizable orders
for us, one of which has been included in our second quarter orders
received and the rest are to be included later this year," says Jorma
Eloranta, President and CEO of Metso Corporation.
"The order intake for our equipment and project business in the first
half of the year was low, while the services demand remained
reasonably stable and satisfactory. Our profitability also remained
satisfactory. Our overall financial development for January-June as
well as our updated estimates for the second half of the year support
our earlier guidance for this year. Our financial position is also
solid."
Eloranta notes that the overall market visibility for 2010 is weak.
"We are prepared to take additional capacity adjustment measures when
needed. Our Board has today decided not to pay any additional
dividend for 2008. This is mainly due to the continuing general
uncertainty on the markets. Our financial performance and financial
position are stable and have developed according to our expectations.
The importance of strong balance sheet increases in an uncertain
economic climate."
Metso's key figures
EUR million Q2/ Q2/ Change % Q1-Q2/ Q1-Q2/ Change % 2008
2009 2008 2009 2008
Net sales 1,247 1,633 -24 2,467 3,033 -19 6,400
Net sales of 522 606 -14 1,029 1,107 -7 2,343
services business
% of net sales 42 38 42 37 37
EBITA before
non-recurring 79.0 166.5 -53 169.8 300.2 -43 680.9
capacity adjustment
expenses
% of net sales 6.3 10.2 6.9 9.9 10.6
Earnings before
interest, tax and 74.7 166.5 -55 143.5 300.2 -52 680.9
amortization
(EBITA)
% of net sales 6.0 10.2 5.8 9.9 10.6
Operating profit 65.9 155.2 -58 124.5 274.8 -55 637.2
% of net sales 5.3 9.5 5.0 9.1 10.0
Earnings per share, 0.26 0.72 -64 0.44 1.27 -65 2.75
EUR
Orders received 1,020 1,740 -41 1,962 3,249 -40 6,384
Order backlog at 3,512 4,494 -22 4,088
end of period
Free cash flow 80 59 36 200 -40 n/a 29
Return on capital
employed (ROCE) 9.3 23.4 23.2
before taxes,
annualized, %
Equity to assets
ratio at end of 31.7 28.9 30.9
period, %
Gearing at end of 70.2 79.5 75.7
period, %
Metso's second-quarter 2009 review
Operating environment and demand for products in April-June
Due to the decline of the global economy and the uncertainty in the
financial markets, our operating environment continued to be
demanding. Our customers were still cautious in their investment
decisions, which particularly affected our equipment and project
businesses.
The majority of mining companies have significantly cut their
investment plans compared with the peak investment levels of previous
years and continued to limit their production during the second
quarter of the year. The positive development in mineral and metal
prices over the first half of 2009 has so far failed to improve the
demand. Due to our strong product and services offering and the
significant increase in our installed equipment base, demand for our
mining equipment and related services continued on a satisfactory
level. In the construction industry, demand for equipment relating to
aggregates production continued on a weak level. Many countries have
introduced economic stimulus packages relating to infrastructure
development. According to our estimates, these measures will improve
the demand for construction industry products only in the longer term
as much of the new capacity installed during recent years is
currently under-utilized. Demand for our construction industry
services business was satisfactory.
Demand for power plants utilizing renewable energy sources was
satisfactory in Europe and North America. The demand for power plants
utilizing biomass and waste is expected to improve during the year
due to measures to stimulate the use of renewable energy sources.
However, limited availability of financing tends to delay the
decision making in these projects. Demand for automation and flow
control solutions decreased during the second quarter of the year.
Demand for metals recycling equipment continued on a weak level due
to the low price of scrap metal, customers' focus on inventory
reduction and curtailments in steel production. The demand for the
services business in our Energy and Environmental Technology segment
was satisfactory.
Demand for paper and board lines picked up in China during the second
quarter of the year. The recovery in the Chinese market was supported
by the economic stimulus measures which have been implemented there.
Fiber producers continue to postpone investment decisions due to low
capacity utilization rates and uncertainty related to demand
development. We have agreed to extend the schedules in a few
additional smaller and medium size projects but in general the
pressure to renegotiate the schedules has diminished. Demand for our
services business in the pulp and paper industry continued to be weak
particularly in North America and Europe due to low capacity
utilization rates and capital spending restrictions.
Orders received in April-June
We received new orders worth EUR 1,020 million in April-June. The
value of the orders was down by 41 percent from the comparison
period. Orders received decreased in all of the reporting segments
from the comparison period. Previously received orders equaling some
EUR 228 million were cancelled from the order backlog, of which the
majority is related to Zhanjiang Chenming pulp mill order
cancellation. The agreements reported under the section "Events after
the review period", are not included in the orders received nor in
the order backlog at the end of June.
Orders received by Mining and Construction Technology in April-June
equaled EUR 398 million, which was 57 percent less than the year
before. The Mining business line's orders received decreased by over
60 percent on the exceptionally high comparison period. New orders
consisted mainly of replacement, refurbishing and services business
orders; no large orders for projects were received. Orders received
by the Construction business line declined 50 percent from the
comparison period.
Orders received by the Energy and Environmental Technology segment
during the second quarter totaled EUR 278 million, down 24 percent on
the comparison period. Orders received more than doubled in our Power
business line from the weak second quarter order intake the year
before. Orders received decreased by over one third in the Automation
business line. This was mainly due to the heavy investment budget
cuts in the paper and pulp and energy industries. Orders received by
the Recycling business line decreased by over 75 percent due to
customers' low capacity utilization rates. During the second quarter
of the year, we received orders for a biofuel power boiler including
an automation and information management system for PGE Zespól
Elektrowni Dolna Odra S.A.'s heat and electricity co-generation plant
in Poland, a recovery boiler for Phoenix Pulp & Paper Public Company
Ltd's pulp and paper mill in Thailand, as well as automation systems
for two energy-from-waste plants in England.
Orders received by our Paper and Fiber Technology segment in
April-June fell by 24 percent from the comparison period and totaled
EUR 335 million. Paper business line was awarded a large coated fine
paper production line order to Shandong Huatai Paper Co. Ltd in
China. Fiber and Tissue business lines received very few new orders.
Also orders for the services business remained at an exceptionally
low level.
Financial performance in April-June
In April-June our net sales equaled EUR 1,247 million, which was 24
percent less than during the comparison period one year earlier (EUR
1,633 million in Q2/08). The services business net sales decreased by
14 percent on the comparison period, and accounted for 42 percent
(38% in Q2/08) of Metso's second quarter net sales.
Earnings before interest, tax and amortization (EBITA) for the second
quarter of the year were EUR 74.7 million, i.e. 6.0 percent of net
sales (EUR 166.5 million and 10.2% in Q2/08). Metso's operating
profit decreased and was EUR 65.9 million, or 5.3 percent of net
sales (EUR 155.2 million and 9.5% in Q2/08). The result for the
second quarter includes some EUR 4 million in non-recurring expenses
resulting from capacity adjustment measures. The cancellation of the
Zhanjiang Chenming pulp mill order resulted in one-time expenses of
about EUR 10 million mainly deriving from the dissolving of the
hedging arrangements we had entered into. The result also includes
EUR 6 million in capital gains from reducing our holding in
Talvivaara Mining Company Plc's shares. The weakening of the
operating result on the comparison period resulted mainly from the
notable 24 percent decrease in net sales and related underabsorption
of fixed costs in a number of manufacturing and engineering units.
The profit attributable to shareholders was EUR 37 million (EUR 102
million in Q2/08) in the second quarter, corresponding to earnings
per share (EPS) of EUR 0.26 (EUR 0.72 in Q2/08).
Free cash flow remained strong during the second quarter and was EUR
80 million. The positive cash flow development was supported by a
continued strong EUR 108 million decrease of inventories in the
Mining and Construction Technology segment which was partly offset by
a strong decrease in advances received as well as in accounts payable
due to lower procurement volumes.
Metso's January-June 2009 Interim Review
Orders received and order backlog
Orders received in January-June totaled EUR 1,962 million, down 40
percent from the comparison period. Previously received orders
equaling some EUR 260 million were cancelled in January-June. These
order cancellations were booked off directly from the end-June 2009
order backlog and had no impact on reported new orders. Almost EUR
200 million of the cancellations relate to the cancellation of the
Zhanjiang Chenming pulp mill order received in August 2008. Cancelled
orders worth approximately EUR 34 million were related to our
Construction business line and about EUR 20 million to our Recycling
business line.
The three countries generating the largest total value of orders
received were China, the United States, and Finland. The share of
emerging markets in orders received was 49 percent (45% in Q1-Q2/08).
All of our business segments reported decrease in orders received as
our customers hesitated to make new investment decisions in the face
of the continuing uncertainty in the global markets and poor
availability of financing.
At the end of June, our order backlog was EUR 3,512 million, which is
14 percent less than at the end of 2008. Close to 60 percent of our
June order backlog deliveries are expected to be completed during
2009. The order backlog includes around EUR 800 million in projects
with somewhat uncertain delivery schedules and which will be
delivered after 2009. These orders include, among others, the pulp
mill project for Aracruz in Brazil.
Agreements reported under the section "Events after the review
period", are not included in the orders received nor in the order
backlog at the end of June.
Orders received by reporting segments
Q1-Q2/2009 Q1-Q2/2008
EUR million % of orders EUR % of orders
received million received
Mining and Construction
Technology 783 40 1,623 49
Energy and Environmental
Technology 543 27 749 23
Paper and Fiber 614 31 874 27
Technology
Valmet Automotive 35 2 42 1
Intra-Metso orders -13 -39
received
Total 1,962 100 3,249 100
Orders received by market area
+-------------------------------------------------------------------+
| | Q1-Q2/2009 | Q1-Q2/2008 |
|----------------------+-----------------------+--------------------|
| | EUR | % of orders | EUR | % of |
| | million | received | million | orders |
| | | | | received |
|----------------------+---------+-------------+---------+----------|
| Europe | 746 | 39 | 1,159 | 36 |
|----------------------+---------+-------------+---------+----------|
| North America | 320 | 16 | 631 | 19 |
|----------------------+---------+-------------+---------+----------|
| South and Central | 237 | 12 | 426 | 13 |
| America | | | | |
|----------------------+---------+-------------+---------+----------|
| Asia-Pacific | 535 | 27 | 784 | 24 |
|----------------------+---------+-------------+---------+----------|
| Rest of the world | 124 | 6 | 249 | 8 |
|----------------------+---------+-------------+---------+----------|
| Total | 1,962 | 100 | 3,249 | 100 |
+-------------------------------------------------------------------+
Net sales
Our net sales for January-June decreased by 19 percent on the
comparison period and equaled EUR 2,467 million (EUR 3,033 million in
Q1-Q2/08). Net sales decreased in all reporting segments: in Mining
and Construction Technology by 12 percent, in Energy and
Environmental Technology by 11 percent and in Paper and Fiber
Technology by 34 percent. The net sales of our services business
decreased by 7 percent and its share of total net sales was 42
percent (37% in Q1-Q2/08).
Measured by net sales, the largest countries were the United States,
China and Germany, which together accounted for about 29 percent of
our total net sales.
Net sales by reporting segments
Q1-Q2/2009 Q1-Q2/2008
EUR million % of net EUR million % of net
sales sales
Mining and Construction
Technology 1,059 43 1,199 39
Energy and Environmental
Technology 754 30 849 28
Paper and Fiber Technology 646 26 976 32
Valmet Automotive 35 1 42 1
Intra-Metso net sales -27 -33
Total 2,467 100 3,033 100
Net sales by market area
Q1-Q2/2009 Q1-Q2/2008
EUR million % of net EUR million % of net
sales sales
Europe 1,064 43 1,312 43
North America 404 16 460 15
South and Central 315 13 363 12
America
Asia-Pacific 481 20 729 24
Rest of the world 203 8 169 6
Total 2,467 100 3,033 100
Financial result
Our earnings before interest, tax and amortization (EBITA) for
January-June weakened significantly from the comparison period and
equaled EUR 143.5 million, or 5.8 percent of net sales (EUR 300.2
million and 9.9% in Q1-Q2/08). Our result includes non-recurring
expenses of EUR 26 million due to capacity adjustment measures, of
which EUR 18 million are related to Paper and Fiber Technology, EUR 5
million to Mining and Construction Technology and EUR 3 million to
Energy and Environmental Technology.
The EBITA of the Paper and Fiber Technology weakened markedly and was
EUR 12.6 million negative. The main causes for the weakened
profitability were the high non-recurring expenses related to the
capacity adjustment measures, the low utilization rates in several
units and the cancellation costs of the Zhanjiang Chenming pulp mill
order, which resulted in one-time expenses of about EUR 10 million
mainly deriving from dissolving the hedging arrangements we had
entered into.
The result for Mining and Construction Technology weakened clearly
from the previous year as a result of the lower delivery volumes in
the Construction business line and low capacity utilization rates in
all manufacturing units. On the other hand the result includes EUR 6
million in capital gains from reducing our holding in Talvivaara
Mining Company Plc.
The result of the Energy and Environmental Technology segment also
decreased from the previous year mainly due to significantly reduced
volumes in the Recycling business line and timing of project
deliveries in the Power business line.
During the first half of the year our operating profit was EUR 124.5
million, or 5.0 percent of net sales (EUR 274.8 million and 9.1% in
Q1-Q2/08). Operating profit before non-recurring expenses related to
capacity adjustment actions was EUR 150.8 million or 6.1% of net
sales.
Our net financing expenses in January-June were EUR 36 million (EUR
19 million). Due to the higher debt level compared to last year, our
interest expenses increased by EUR 5 million and were EUR 36 million
(EUR 31 million in Q1-Q2/08). Other financial expenses include a EUR
4 million reversal of translation adjustments resulting from two
subsidiaries liquidated in the first quarter.
Our profit before tax was EUR 89 million (EUR 256 million) and our
tax rate for 2009 is estimated to be about 30 percent (30% in 2008).
The profit attributable to shareholders was EUR 63 million (EUR 180
million) in January-June, corresponding to earnings per share (EPS)
of EUR 0.44 (EUR 1.27 per share).
In January-June, the annualized return on capital employed (ROCE)
before taxes was 9.3 percent (23.4%) and return on equity (ROE) was
8.7 percent (23.9%).
Cash flow and financing
Net cash generated by operating activities for January-June was EUR
228 million (EUR 17 million in Q1-Q2/08).
During January-June, EUR 135 million of net working capital was
released. EUR 192 million of the release came from inventories and
EUR 55 million from trade receivables. Simultaneously, trade payables
decreased by EUR 197 million. Inventories in Mining and Construction
Technology continued to decrease during the second quarter by EUR 108
million and the cumulative decrease from the beginning of the year is
now EUR 180 million as a result of the ongoing special inventory
reduction initiative.
Free cash flow was EUR 200 million positive in January-June (EUR 40
million negative in Q1-Q2/08).
Our net interest-bearing liabilities totaled EUR 1,042 million at the
end of June (EUR 1,099 million on December 31, 2008).
The total amount of short-term debt maturing over the next 12 months
equaled EUR 357 million at the end of June. EUR 118 million of the
short-term debt consists of commercial papers issued in the Finnish
markets, EUR 156 million is current portions of long-term debt and
the remainder is local working capital financing of subsidiaries,
primarily in Brazil. About EUR 48 million of existing long-term debt
will mature during the two final quarters of 2010.
The amount of commercial paper financing in use during January-June
fluctuated between EUR 110-160 million. During January-June, we
obtained EUR 365 million in new long-term debt maturing in 4-5 years.
The largest single transaction was a EUR 200 million five-year
funding arrangement under the Euro medium term note (EMTN) program.
New loans are primarily meant for the refinancing of our existing
debt and for the extension of the maturity structure. The amount of
this new long term debt exceeds the repayments of earlier loans from
the beginning of 2009 to halfway through 2011. Metso's liquidity
position is good. At the end of June, cash and cash equivalents
totalled EUR 605 million. The syndicated EUR 500 million revolving
credit facility is available until late 2011, and it is currently
undrawn.
At the end of June, our gearing was 70.2 percent (79.5%) and the
equity-to-assets ratio was 31.7 percent (28.9%). In April, following
the Annual General Meeting, we paid EUR 99 million in dividends for
2008.
Capital expenditure
Our gross capital expenditure for January-June decreased by 51
percent on the comparison period and was EUR 55 million (EUR 112
million in Q1-Q2/08).
We expect our capital expenditure excluding business acquisitions to
remain below EUR 150 million this year. Due to the changed global
economic situation, we are significantly restricting the amount of
new investments and extending the implementation schedules of ongoing
investment projects when feasible.
We are constructing new plant and office premises for the Automation
business line in Shanghai, China. The Metso Park industrial facility,
designed especially to serve the mining and construction industry, is
under construction in Rajasthan, India. In Finland, we are upgrading
a pilot machine at the Paper Technology Center in Jyväskylä. We are
establishing a third service center for the pulp and paper industry
in China, in Zibo, Shandong province. Due to the changed market
conditions, we have extended the implementation schedules for the
Metso Park and Zibo service center investments. Investment projects
in enterprise resource planning systems are underway in Mining and
Construction Technology and in the Automation business line.
Metso's research and development expenses in January-June totaled EUR
61 million, representing 2.5 percent of Metso's net sales (EUR 66
million and 2.2% in Q1-Q2/08).
Acquisitions, divestments and joint ventures
In May, we sold the entire stock of Metso Paper Turku Works Oy to
Stairon Oy. Metso Paper Turku Works Oy manufactured air systems for
the pulp and paper industry. The sale had no significant impact on
Metso's financial performance. The air system technology and the
related business will remain in Metso's ownership. Metso Paper Turku
Works Oy employed 91 people. In conjunction with the sale, Metso and
Stairon have agreed on a long-term supply contract for the
manufacture of certain key products.
In January, we sold our composites manufacturing business and related
assets in Oulu, Finland, to xperion Oy. Annual net sales of the
divested business have been less than EUR 5 million. The entire
personnel of the business, 21 people, were transferred to xperion Oy.
The divested business was part of our Paper business line.
MW Power Oy, a joint venture of Metso's heat and power business and
Wärtsilä's biopower business, started its operations on January 1,
2009. We own 60 percent and Wärtsilä owns 40 percent of the joint
venture. An order backlog of approximately EUR 116 million was
transferred with Wärtsilä Biopower Oy to the joint venture. In 2008,
the consolidated annual pro forma net sales of the company were
approximately EUR 130 million and the number of employees about 200.
Adjusting capacity to demand
We began adjusting our capacity and cost structure to lower demand
immediately when the market situation started to weaken in September
2008 and have continued these measures in 2009. The aim is to ensure
the competitiveness of our operations.
Our first steps were to reduce the number of temporary personnel and
the use of subcontractors. In addition we have initiated temporary
lay-offs and permanent reductions at several of our units. In most
cases, the temporary lay-offs concern all employee groups, and their
duration varies, depending on the work load, from a few weeks to
longer periods. The temporary lay-offs are mainly in use in Finland
where local agreements allow for this type of flexibility. In other
countries we have applied alternative options made possible by labor
legislation, such as a shortened work week. Through the
implementation of temporary lay-offs in Finland, we estimate that we
will achieve some EUR 25-30 million savings in personnel costs over
the course of this year. Furthermore, during the first half-year we
have concluded employee negotiations to permanently reduce close to
1,900 employees. In January-June we recorded EUR 26 million in
non-recurring expenses resulting from these personnel reductions and
the closures of units connected with them. With these measures we
estimate that we will achieve annual savings of about EUR 90 million,
of which about EUR 40 million is estimated to be realized in 2009.
As a result of the above actions, our actual comparable personnel
reduction from the end of June 2008 to the end of June 2009 has been
about 2,650 employees. In addition, with the decisions already made
during the first half of the year, our personnel is estimated to
continue to go down during the second half of 2009 and first quarter
of 2010 by another about 1,250 employees taking the total personnel
reductions already decided to almost 4,000 employees. When
calculating the comparable personnel reduction from the end of June
2008 to the end of June 2009 one has to take into considerations that
some 1,800 employees have been added through acquisitions and some
300 employees have left the company through divestitures. In
addition, we estimate the impact of temporary lay-offs in Finland in
2009 to equal to about 600 man-years in 2009.
The table below details the most significant capacity-adjustment
measure decisions.
Segment Business line Measures Implementati-on
starting
Mining and Mining business Reduction of about December 2008
Construction line 320 people, temporary
Technology lay-offs according to
work load, unit
closures.
Mining and Construction Reduction of about December 2008
Construction business line 360 people, temporary
Technology lay-offs, unit
closures.
Energy and Power business Reduction of 15 March 2009
Environmental line people, temporary
Technology lay-offs.
Q2/2009: Reduction of
81 people including
temporary work force
reduction and
internal transfers
etc.
Energy and Automation Reduction of 87 March 2009
Environmental business line people including
Technology closure of a unit and
temporary lay-offs.
Energy and Recycling Reduction of 24 September 2008
Environmental business line people, temporary
Technology revoking of
contracts, shortened
working hours.
Paper and Fiber Paper business Reduction of about December 2008
Technology line 750 people, temporary
lay-offs, unit
closures, transfers
of personnel to other
units.
Paper and Fiber Fiber business Reduction of about December 2008
Technology line 250 people, temporary
lay-offs, reduction
of temporary
personnel.
Paper and Fiber Tissue business Reduction of about 45 January 2009
Technology line people.
Personnel
At the end of June, we had 27,608 employees, which was 1,714 less
than at the end of 2008 (29,322 people at December 31, 2008). Around
300 employees of these were seasonal workers. The number of employees
fell especially in Finland and Sweden, as a result of capacity
adjustment measures in our Paper and Fiber Technology segment. During
January-June, we had an average of 28,414 employees.
Personnel by area
June 30, % of total June % of total Change Dec 31,
2009 personnel 30, personnel % 2008
2008
Finland 8,813 32 9,837 35 -10 9,252
Other Nordic 3,073 11 3,566 13 -14 3,332
countries
Other Europe 3,588 13 3,391 12 6 3,842
North America 3,606 13 3,890 14 -7 3,964
South and
Central America 2,743 10 2,863 10 -4 2,991
Asia-Pacific 4,332 16 3,077 11 41 4,469
Rest of the 1,453 5 1,445 5 1 1,472
world
Total 27,608 100 28,069 100 -2 29,322
Changes in top management
In June, Perttu Louhiluoto was appointed Mining and Construction
Technology's Senior Vice President, EMEA market area, as of July 1,
2009. He is responsible for sales and services delivery and mining
and construction customer contacts in Europe, Middle East and Africa.
Louhiluoto has worked as SVP, Operational Excellence at Group Head
Office, Finland, since October 2008. Due to his new position
Louhiluoto has renounced his membership of Metso Executive Team and
Metso Executive Forum.
REPORTING SEGMENTS
Mining and Construction Technology
EUR million Q2/09 Q2/08 Change Q1- Q1- Change 2008
% Q2/09 Q2/08 %
Net sales 531 665 -20 1,059 1,199 -12 2,586
Net sales of services
business 250 270 -7 492 508 -3 1,078
% of net sales 47 41 47 43 42
Earnings before
interest, tax and
amortization (EBITA) 46.9 91.8 -49 102.5 170.7 -40 361.2
% of net sales 8.8 13.8 9.7 14.2 14.0
Operating profit 46.0 91.0 -49 100.9 169.2 -40 358.4
% of net sales 8.7 13.7 9.5 14.1 13.9
Orders received 398 936 -57 783 1,623 -52 2,709
Order backlog at end
of period 1,196 1,850 -35 1,492
Personnel at end of
period 10,344 10,503 -2 11,259
Net sales of Mining and Construction Technology decreased by 12
percent on the comparison period, equaling EUR 1,059 million. The
Mining business line's net sales decreased by about 5 percent, while
the net sales of the Construction business line decreased over 20
percent. Net sales of the services business declined by 3 percent on
the comparison period and accounted for 47 percent of the segment's
net sales (43% in Q1-Q2/08).
Mining and Construction Technology's operating profit for the first
half-year was EUR 100.9 million, i.e. 9.5 percent of net sales (EUR
169.2 million and 14.1% in Q1-Q2/08). The segment's operating profit
was burdened by EUR 5 million in non-recurring expenses relating to
the capacity adjustment measures. The operating profit includes EUR 6
million in capital gains relating to the reduction of our holding in
Talvivaara Mining Company Plc. The profitability of the Mining
business line weakened but continued to be good. Profitability of the
Construction business line weakened clearly from the comparison
period due to lower delivery volumes, low capacity utilization rates
in the factories and one-time capacity adjustment measures.
The value of orders received declined 52 percent from the comparison
period and was EUR 783 million in January-June (EUR 1,623 million in
Q1-Q2/08). The amount of new orders decreased in both of the
segment's business lines in all geographical areas. The relative
share of orders received from emerging markets remained on par with
the previous year, equaling 49 percent (50%). During January-June,
around EUR 50 million in earlier received orders were cancelled.
The order backlog declined by 20 percent from the end of 2008 and
totaled EUR 1,196 million at the end of June (EUR 1,492 million on
December 31, 2008). Around EUR 200 million of the mining equipment
orders in the order backlog have somewhat uncertain delivery
schedules.
A decision was made in June 2009 to renew the Mining and Construction
Technology segment's operating model. The aims of the new way to
operate include developing the services business, enhancing operating
efficiency and further strengthening of our position as a leading
provider of mining and construction equipment and systems. As of July
1, 2009 the segment will be organized into two new business lines:
All services-related business activities, including the spare and
wear parts business, will be concentrated into the Services business
line and all systems- and equipment-related business activities will
be consolidated into the Equipment and Systems business line.
Energy and Environmental Technology
EUR million Q2/09 Q2/08 Change Q1- Q1- Change 2008
% Q2/09 Q2/08 %
Net sales 357 476 -25 754 849 -11 1,775
Net sales of services
business 130 143 -9 262 254 3 549
% of net sales 37 31 35 31 32
Earnings before interest,
tax and amortization
(EBITA) 34.1 49.7 -31 66.4 82.1 -19 198.3
% of net sales 9.6 10.4 8.8 9.7 11.2
Operating profit 29.7 44.2 -33 57.4 68.8 -17 176.0
% of net sales 8.3 9.3 7.6 8.1 9.9
Orders received 278 367 -24 543 749 -28 1,658
Order backlog at end of
period 1,035 1,253 -17 1,204
Personnel at end of
period 6,349 6,311 1 6,357
The net sales of Energy and Environmental Technology declined by 11
percent on the comparison period, equaling EUR 754 million. The
Automation business line's net sales were on last year's level while
the Power and Recycling business line's net sales declined clearly
from the comparison period. The main reason for decline in the Power
business line's net sales was the timing of the projects in the order
backlog. The services business grew by 3 percent, and its share of
the segment's net sales went up to 35 percent (31% in Q1-Q2/08).
The Energy and Environmental Technology segment's earnings before
interest, tax and amortization (EBITA) weakened from the previous
year and equaled EUR 66.4 million, or 8.8 percent of net sales (EUR
82.1 million and 9.7% in Q1-Q2/08). The EBITA margin improved
slightly from the previous year's level in the Automation business
line, weakened somewhat in the Power business line due to timing of
deliveries and declined significantly in the Recycling business line
due to low volumes and capacity utilization rates. The operating
profit includes almost EUR 3 million in non-recurring expenses
resulting from capacity adjustment measures.
The value of orders received fell by 28 percent from the comparison
period and totaled EUR 543 million. The decrease came from the
Automation and Recycling business lines. Approximately EUR 80 million
of orders previously received by the Energy and Environmental
Technology segment were cancelled, of which about EUR 60 million
resulted from the cancelled Zhanjiang Chenming recovery boiler order.
Larger orders came in particularly from the power production
industry, for example a recovery boiler for Phoenix Pulp & Paper
Public Company Limited's pulp and paper mill in Thailand, a power
boiler including an automation and information management system for
PGE Zespól Elektrowni Dolna Odra S.A.'s heat and electricity
co-generation plant in Poland and automation systems for two
energy-from-waste plants in the United Kingdom.
The order backlog at the end of June, EUR 1,035 million, was 14
percent lower than at the end of 2008. Projects accounting for
slightly less than EUR 110 million of the order backlog's total value
are subject to uncertainties relating to delivery schedules. These
uncertain orders include, among others, the delivery of power boiler
and automation technology for the pulp mill project of Aracruz in
Brazil.
Paper and Fiber Technology
EUR million Q2/09 Q2/08 Change Q1- Q1- Change 2008
% Q2/09 Q2/08 %
Net sales 359 493 -27 646 976 -34 2,044
Net sales of services
business 143 193 -26 275 345 -20 716
% of net sales 40 39 43 35 35
Earnings before
interest, tax and
amortization (EBITA) 1.4 28.1 -95 -12.6 58.0 n/a 146.1
% of net sales 0.4 5.7 -2.0 5.9 7.1
Operating profit -1.6 23.8 n/a -19.8 48.7 n/a 130.1
% of net sales -0.4 4.8 -3.1 5.0 6.4
Orders received 335 441 -24 614 874 -30 2,021
Order backlog at end of
period 1,304 1,441 -10 1,434
Personnel at end of
period 9,858 10,089 -2 10,544
The net sales of Paper and Fiber Technology decreased by 34 percent
in January-June, equaling EUR 646 million. The decrease was due to
the overall slowdown of the markets and the timing of the deliveries
in the order backlog. Net sales decreased clearly across all of the
business lines. The services business net sales for January-June
decreased by 20 percent but equaled 43 percent of segment's net sales
due to low new equipment sales (35% in Q1-Q2/08).
Paper and Fiber Technology's EBITA for the first half-year was EUR
12.6 million negative (EUR 58.0 million positive in Q1-Q2/08). The
result includes around EUR 18 million in non-recurring costs
resulting from capacity adjustment measures. The cancellation of the
Zhanjiang Chenming pulp mill order resulted in about EUR 10 million
of one-time expenses mainly deriving from the dissolving of the
hedging arrangements we had entered into. The underlying operational
EBITA before the above mentioned non-recurring capacity adjustment
and cancellation costs was EUR 15.0 million. The profitability of the
first half of the year was also weakened by the low capacity
utilization rate of our manufacturing and engineering units, capacity
adjustment expenses and low volume.
The weak demand for the pulp industry's machinery and equipment
continued. Demand for paper and board lines picked up in China in the
second quarter partly due to the stimulus measures which have been
implemented there. The value of orders received decreased 30 percent
from the comparison period and was EUR 614 million.The largest order
received was a coated fine paper production line to Shandong Huatai
Paper Co. Ltd, in China. The order backlog at the end of June was EUR
1,304 million. Close to 40 percent of the projects in the order
backlog are subject to uncertainties relating to delivery schedules.
These include, for example, the Aracruz pulp equipment order.
Agreements reported under the section "Events after the review
period", are not included in orders received nor order backlog at the
end of June.
Two of our North American customers, Smurfit-Stone Container
Corporation and AbitibiBowater Inc., announced in the beginning of
the year that they have filed a voluntary petition for reorganization
under Chapter 11. For the first half of the year, we have recognized
a EUR 4 million credit loss reserve to cover the risks related to
these reorganizations.
Valmet Automotive
Valmet Automotive's net sales in January-June totaled EUR 35 million
(EUR 42 million in Q1-Q2/08). Operating loss was EUR 2.9 million
(operating profit EUR 1.9 million in Q1-Q2/08). In January-June,
Valmet Automotive produced an average of 71 vehicles (108 vehicles in
Q1-Q2/08) per day. At the end of June, Valmet Automotive employed 636
people (783 people at December 31, 2008).
In January, Valmet Automotive signed an agreement with the Danish
company Garia A/S for the engineering and manufacturing of an
electric golf car. The production of this vehicle is planned to begin
during the third quarter. The agreement spans several years and
involves the production of a few thousand Garia golf cars annually.
At the end of 2008, Valmet Automotive and the U.S. company Fisker
Automotive Inc. signed a cooperation agreement on the engineering and
manufacturing of Fisker Karma hybrid cars in Finland. The first cars
are planned to be manufactured during the fourth quarter of this
year. The agreement spans several years and annual production is
projected to be 15,000 cars. Valmet Automotive's current assembly
contract with Porsche will continue until 2012.
Events after the review period
Fine paper line to Zhanjiang Chenming in China, earlier received pulp
mill order cancelled
In July, we signed a contract with the Chinese Zhanjiang Chenming
Pulp & Paper Co., Ltd., for the supply of the world's largest fine
paper production line to the company's greenfield pulp and paper mill
in Zhanjiang, China. The total value of the order is approximately
EUR 130 million. The new paper line order is included in Paper and
Fiber Technology's third quarter orders received. Metso agreed with
the customer that the pulp mill order which we were awarded in the
third quarter of 2008 was cancelled and the cancelled order has been
removed from June 2009 order backlog.
A letter of order for a paper making line with MCC Meili of China
In July, Metso and the Chinese MCC Meili Paper Industry Co. Ltd.
signed a letter of order for the delivery of a lightweight-coated
papermaking line to the customer's mill in Zhongwei city, Ningxia
autonomous region in China. The start-up of the production line is
scheduled for the first quarter of 2011. The total value of the order
is approximately EUR 90 million. The deal is still subject to the
parties coming to the final agreement of the project within a few
months.
Metso decides not to distribute the additional dividend from 2008
On July 24, 2009, Metso's Board of Directors decided that Metso will
not pay any additional dividend for 2008 in addition to the ordinary
dividend of 0.70 euro per share that was distributed in April 2009.
Metso's financial performance and financial position are stable and
have developed according to management expectations, but the market
visibility for 2010 continues to be weak. The importance of strong
balance sheet increases in an uncertain economic climate.
The Annual General Meeting of March 30, 2009 authorized the Board to
decide by the end of 2009, at its discretion and when the economic
situation of Metso favors it, on the payment of an additional
dividend for 2008 in the amount of no more than EUR 0.68 per share.
With this Board decision no additional dividend will be distributed.
Short-term risks of business operations
Based on the uncertainty in the global economy and financial markets,
our business environment for 2009 is continuing to be demanding.
The global economic recession and the financial crisis may have
adverse effects on projects in our order backlog. Some projects may
be postponed or they may be suspended or canceled. We estimate that
over 20 percent of the projects currently in our order backlog are
subject to uncertainties relating to delivery schedules. We apply the
percentage of completion method to long-term delivery agreements, so
we recognize long-term delivery agreements according the progress of
the delivery. The customer advance payment is typically 10-30
percent, in addition to which the customer makes progress payments
based on the milestones during the project execution, which
significantly decreases risk related to projects. We assess
continually our customers' creditworthiness and ability to fulfill
their obligations. If a customer faces liquidity problems, we will
discuss the possibility of changing project delivery schedules and
terms of payment and any other measures needed. As a rule, we do not
finance customer projects.
We have launched many measures to adjust to the rapidly changing
operating environment. We are adjusting our capacity as well as cost
and operational structure to correspond with the demand, in order to
maintain our competitiveness. As a result of the global recession,
the markets for our products are decreasing, leading to tightening
cost competition.
Securing the continuity of our operations requires that sufficient
funding is available under all circumstances. The financial crisis
may have adverse effects on the availability of our debt financing
and increase the costs relating to it. We estimate that our financial
assets and available credit facilities are sufficient to secure
short-term liquidity. At the end of June, cash and cash equivalents
totaled EUR 605 million and credit facilities available for
withdrawal amounted to EUR 500 million. The average repayment period
for our long-term loan capital is 3.9 years. More than half of our
long-term debt will mature after 2011. There are no prepayment
covenants in our debt facilities that would be triggered by changes
in credit ratings. Some of our debt facilities include financial
covenants related to capital structure. Currently we fully meet the
covenants and other terms related to our financing agreements. We
consider our flexibility in relation to the covenants to be adequate.
The levels of net working capital and the level of capital
expenditure have a fundamental effect on the adequacy of financing.
Our aim is to decrease the level of our net working capital, and this
could be difficult to achieve if the economic downturn is prolonged.
We do not have any particularly large-scale investment projects
underway, and we estimate that we are well positioned to keep our
capital expenditure at a moderate level in the coming years.
We have EUR 787 million of goodwill on our balance sheet related to
corporate acquisitions made over the last 10 years. We monitor our
goodwill quarterly and carry out comprehensive impairment testing
annually in September. Following the significant changes in our
business environment, we have conducted additional impairment testing
reviews at the end of every quarter since September 2008, and have
not found any impairment necessary. The quarterly testing reviews
have been conducted with the same principles as the annual tests and
the discount rates have been adjusted when appropriate. The
principles of the impairment testing are represented in the annual
report.
Changes in the prices of raw materials and components could affect
our profitability. On the one hand, the risk of increases in
procurement costs typically diminishes during economic downturn. On
the other hand, some of our customers are raw-material producers,
whose ability to operate and invest may be hampered by declining raw
material prices. Changes in raw material and component prices also
affect the value of our inventories. Over the past few months, we
have sold finished construction equipment from the inventory with a
lower contribution margin than during the past few years.
Of the financial risks that affect our profitability, currency
exchange rate risks are among the most substantial. Exchange rate
changes can affect our business, although the geographical scope of
our operations decreases the significance of any individual currency.
The prevailing uncertainty in the financing markets is likely to
increase exchange rate fluctuations.
Short-term outlook
Based on the global economic recession and uncertain financial
markets, we estimate that our business environment will continue to
be demanding during the rest of the year. Our customers are being
cautious in their investment decisions, which particularly affects
our equipment sales and project business. Our customers' capacity
utilization rates have decreased which has had some negative impact
on our services net sales, too.
Several mining companies are making substantial cuts in their
investment plans compared with the recent years and are limiting
their production. Due to our strong product and services offering, as
well as our large installed equipment base, which has further grown
significantly over the last few years, the demand for our mining
equipment and services is expected to be satisfactory in 2009. In the
construction industry, we estimate that the demand for equipment
relating to aggregates production will be weak. Many countries have
introduced stimulus measures relating to infrastructure development,
which we expect to have a positive effect on the demand for our
construction industry products in the long term. We estimate that the
demand for our services offering in the construction industry will be
satisfactory.
We estimate that the demand for power plants utilizing renewable
energy sources will be satisfactory in Europe and North America in
2009. Many countries have initiated plans to increase the use of
renewable energy sources. This is expected to support the demand for
power plants utilizing biomass and waste. However, limited
availability of financing may delay decision making in these
projects. We estimate that the demand for our automation and flow
control products will be satisfactory in 2009. The demand for metals
recycling equipment is expected to be weak, owing to the low price of
scrap metal and decline in steel production. We expect that the
demand for the services offering of Energy and Environmental
Technology will be satisfactory.
We estimate that the demand for fiber lines will be weak and for
paper and board lines satisfactory in 2009. In the short-term, a
number of paper and board machine projects in China are expected to
materialize, partly thanks to the local stimulus measures. The
delivery schedules of some of the major paper and board machine and
fiber line projects in our order backlog have been prolonged. We
estimate that the low capacity utilization rates in the pulp and
paper industry will have a negative impact on the demand for our
services business, particularly in North America and Europe.
We estimate that our net sales will exceed EUR 5 billion in 2009. Our
order backlog stands at EUR 3.5 billion, of which EUR 2.0 billion
consists of deliveries for 2009. We expect our services business to
remain satisfactory in 2009.
We expect our profitability level to be satisfactory in 2009. We also
expect our free cash flow to improve considerably on 2008 owing
mainly to the measures aimed at releasing net working capital.
The net sales and profitability estimates are based on our current
market outlook and business scope.
Helsinki, July 24, 2009
Metso Corporation's Board of Directors
It should be noted that certain statements herein which are not
historical facts, including, without limitation, those regarding
expectations for general economic development and the market
situation, expectations for customer industry profitability and
investment willingness, expectations for company growth, development
and profitability and the realization of synergy benefits and cost
savings, and statements preceded by "expects", "estimates",
"forecasts" or similar expressions, are forward-looking statements.
These statements are based on current decisions and plans and
currently known factors. They involve risks and uncertainties which
may cause the actual results to materially differ from the results
currently expected by the company.
Such factors include, but are not limited to:
1) general economic conditions, including fluctuations in exchange
rates and interest levels, which influence the operating environment
and profitability of customers and thereby the orders received by the
company and their margins
(2) the competitive situation, especially significant technological
solutions developed by competitors
(3) the company's own operating conditions, such as the success of
production, product development and project management and their
continuous development and improvement
(4) the success of pending and future acquisitions and restructuring.
The Interim Review is unaudited
CONSOLIDATED STATEMENT OF INCOME
EUR million 4-6/2009 4-6/2008 1-6/2009 1-6/2008 1-12/2008
Net sales 1,247 1,633 2,467 3,033 6,400
Cost of goods sold -942 -1,210 -1,867 -2,248 -4,733
Gross profit 305 423 600 785 1,667
Selling, general and
administrative expenses -239 -266 -478 -515 -1,043
Other operating income
and expenses, net -1 -2 2 4 11
Share in profits of
associated companies 1 0 1 1 2
Operating profit 66 155 125 275 637
% of net sales 5.3% 9.5% 5.1% 9.1% 10.0%
Financial income and
expenses, net -14 -10 -36 -19 -89
Profit before taxes 52 145 89 256 548
Income taxes -15 -43 -26 -76 -158
Profit 37 102 63 180 390
Attributable to:
Shareholders of the
company 37 102 63 180 389
Minority interests 0 0 0 0 1
Profit 37 102 63 180 390
Earnings per share, EUR 0.26 0.72 0.44 1.27 2.75
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
EUR million 4-6/2009 4-6/2008 1-6/2009 1-6/2008 1-12/2008
Profit 37 102 63 180 390
Cash flow hedges, net
of tax 15 5 10 9 -33
Available-for-sale
equity investments, net
of tax 4 0 10 0 -19
Currency translation on
subsidiary net
investments 10 15 48 -50 -49
Net investment hedge
gains (losses), net of
tax 11 -5 2 8 -11
Defined benefit plan
actuarial gains
(losses), net of tax - - - - -22
Other comprehensive
income (expense) 40 15 70 -33 -134
Total comprehensive
income (expense) 77 117 133 147 256
Attributable to:
Shareholders of the
company 77 117 133 147 255
Minority interests 0 0 0 0 1
Total comprehensive
income (expense) 77 117 133 147 256
CONSOLIDATED BALANCE SHEET
ASSETS
June 30, June 30, Dec 31,
EUR million 2009 2008 2008
Non-current assets
Intangible assets
Goodwill 787 774 778
Other intangible assets 250 269 254
1,037 1,043 1,032
Property, plant and equipment
Land and water areas 59 54 58
Buildings and structures 239 212 239
Machinery and equipment 370 312 366
Assets under construction 55 85 63
723 663 726
Financial and other assets
Investments in associated companies 14 19 14
Available-for-sale equity investments 31 44 18
Loan and other interest bearing receivables 9 12 8
Available-for-sale financial investments 5 5 5
Derivative financial instruments 0 8 0
Deferred tax asset 178 119 174
Other non-current assets 29 14 26
266 221 245
Total non-current assets 2,026 1,927 2,003
Current assets
Inventories 1,466 1,616 1,606
Receivables
Trade and other receivables 1,088 1,199 1,146
Cost and earnings of projects under
construction in excess of advance billings 246 400 362
Loan and other interest bearing receivables 8 2 9
Available-for-sale financial assets 10 - -
Derivative financial instruments 30 22 48
Income tax receivables 29 33 23
1,411 1,656 1,588
Cash and cash equivalents 605 361 314
Total current assets 3,482 3,633 3,508
TOTAL ASSETS 5,508 5,560 5,511
SHAREHOLDERS' EQUITY AND LIABILITIES
June 30, June 30,
EUR million 2009 2008 Dec 31, 2008
Equity
Share capital 241 241 241
Share premium reserve - 77 -
Cumulative translation adjustments -86 -118 -136
Fair value and other reserves 508 471 490
Retained earnings 811 666 849
Equity attributable to shareholders 1,474 1,337 1,444
Minority interests 9 7 9
Total equity 1,483 1,344 1,453
Liabilities
Non-current liabilities
Long-term debt 1,322 850 1,089
Post employment benefit obligations 191 169 191
Provisions 43 44 36
Derivative financial instruments 8 - 8
Deferred tax liability 47 42 45
Other long-term liabilities 3 4 4
Total non-current liabilities 1,614 1,109 1,373
Current liabilities
Current portion of long-term debt 156 92 101
Short-term debt 201 505 245
Trade and other payables 952 1 310 1 189
Provisions 233 212 218
Advances received 489 632 479
Billings in excess of cost and
earnings of projects
under construction 339 279 323
Derivative financial instruments 35 21 82
Income tax liabilities 6 56 48
Total current liabilities 2,411 3,107 2,685
Total liabilities 4,025 4,216 4,058
TOTAL SHAREHOLDERS' EQUITY AND
LIABILITIES 5,508 5,560 5,511
NET INTEREST BEARING LIABILITIES
Long-term interest bearing debt 1,322 850 1,089
Short-term interest bearing debt 357 597 346
Cash and cash equivalents -605 -361 -314
Other interest bearing assets -32 -19 -22
Total 1,042 1,067 1,099
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
EUR million 4-6/2009 4-6/2008 1-6/2009 1-6/2008 1-12/2008
Cash flows from
operating activities:
Profit 37 102 63 180 390
Adjustments to reconcile profit
to net cash provided by
operating activities
Depreciation and
amortization 34 34 70 71 138
Interests and dividend
income 14 15 30 24 57
Income taxes 15 43 26 76 158
Other 1 4 10 4 34
Change in net working
capital 41 -67 135 -254 -437
Cash flows from
operations 142 131 334 101 340
Interest paid and
dividends received -14 -6 -25 -10 -49
Income taxes paid -36 -39 -81 -74 -154
Net cash provided by
(used in) operating
activities 92 86 228 17 137
Cash flows from
investing activities:
Capital expenditures on
fixed assets -25 -70 -55 -112 -255
Proceeds from sale of
fixed assets 1 2 3 3 10
Business acquisitions,
net of cash acquired - -39 -3 -39 -44
Proceeds from sale of
businesses, net of cash
sold 0 1 2 3 12
(Investments in)
proceeds from sale of
financial
assets -3 - -3 7 7
Other 1 -1 1 -7 -7
Net cash provided by
(used in) investing
activities -26 -107 -55 -145 -277
Cash flows from
financing activities:
Redemption of own
shares - - -2 - -
Dividends paid -99 -425 -99 -425 -425
Net funding 201 397 214 637 621
Other -6 13 -6 15 15
Net cash provided by
(used in) financing
activities 96 -15 107 227 211
Net increase (decrease)
in cash and cash
equivalents 162 -36 280 99 71
Effect from changes in
exchange rates 7 8 11 -5 -24
Cash and cash
equivalents at
beginning of period 436 389 314 267 267
Cash and cash
equivalents at end of
period 605 361 605 361 314
Free cash flow
EUR million 4-6/2009 4-6/2008 1-6/2009 1-6/2008 1-12/2008
Net cash provided by
operating activities 92 86 228 17 137
Capital expenditures on
maintenance investments -13 -29 -31 -60 -118
Proceeds from sale of
fixed assets 1 2 3 3 10
Free cash flow 80 59 200 -40 29
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Cu- Eq-
mu- uity
la- at-
tive tri-
Share trans- Fair but- Mi-
pre la- value Re- able nor-
mi- tion and tain- to ity To-
Share um ad- other ed share in- tal
capi- re- just- re- earn- hold- ter- eq-
EUR million tal serve ments serves ings ers ests uity
Balance at Jan 1,
2008 241 77 -76 456 910 1,608 7 1,615
Other comprehensive
income (expense) - - -42 9 - -33 - -33
Profit - - - - 180 180 0 180
Total comprehensive
income (expense) - - -42 9 180 147 0 147
Dividends - - - - -425 -425 - -425
Redemption of own
shares - - - - - - - -
Share-based
payments, net of tax - - - 4 - 4 - 4
Other - - - 2 1 3 - 3
Balance at June 30,
2008 241 77 -118 471 666 1,337 7 1,344
Balance at Jan 1,
2009 241 - -136 490 849 1,444 9 1,453
Other comprehensive
income (expense) - - 50 20 - 70 - 70
Profit - - - - 63 63 0 63
Total comprehensive
income (expense) - - 50 20 63 133 0 133
Dividends - - - - -99 -99 - -99
Redemption of own
shares - - - -3 - -3 - -3
Share-based
payments, net of tax - - - 1 - 1 - 1
Other - - - 0 -2 -2 - -2
Balance at June 30,
2009 241 - -86 508 811 1,474 9 1,483
ACQUISITIONS
Acquisitions in 2009
In January Metso and Wärtsilä finalized the combination of Metso's
Heat & Power business with Wärtsilä's Biopower business into a new
joint venture MW Power Oy. Metso owns 60% and Wärtsilä 40% of the new
company. In this non-cash transaction Wärtsilä contributed its
business into MW Power Oy in exchange of the shares in the company.
In accordance with IFRS, the company is fully consolidated into
Metso's Power business line.
In January Metso also acquired Oktokon Oy, a Finnish engineering
company, into its Power business line.
The acquired businesses contributed net sales of EUR 45 million and
net profit of EUR 2 million for the period from their acquisition to
June 30, 2009.
Summary information on acquisitions made in January-June 2009 is as
follows:
Fair value
EUR million Carrying amount allocations Fair value
Intangible assets 0 2 2
Property, plant and
equipment 2 - 2
Inventories 19 - 19
Trade and other
receivables 17 - 17
Deferred tax
liabilities 0 -1 -1
Minority interest - - -
Other liabilities
assumed -32 - -32
Non-interest bearing
net assets 6 1 7
Cash and cash
equivalents acquired 7
Debt assumed -17
Purchase price -5
Goodwill 8
Purchase price settled
in cash -5
Deferred payments on
prior year acquisitions -5
Cash and cash
equivalents acquired 7
Net cash outflow on
acquisitions -3
ASSETS PLEDGED AND CONTINGENT LIABILITIES
EUR million June 30, 2009 June 30, 2008 Dec 31, 2008
Mortgages on corporate debt 3 4 4
Other pledges and
contingencies
Mortgages 1 1 1
Pledged assets 0 0 0
Guarantees on behalf of
associated company
obligations - - -
Other guarantees 6 3 9
Repurchase and other
commitments 6 7 6
Lease commitments 151 143 152
NOTIONAL AMOUNTS OF DERIVATIVE FINANCIAL
INSTRUMENTS
EUR million June 30, 2009 June 30, 2008 Dec 31, 2008
Forward exchange rate
contracts 1,334 1,511 1,460
Interest rate swaps 123 143 168
Option agreements
Bought - 16 12
Sold - 16 12
The notional amount of electricity forwards was 569 GWh as of June
30, 2009 and 437 GWh as of June 30, 2008.
The notional amount of nickel forwards to hedge stainless steel
prices was 246 tons as of June 30, 2009 and 354 tons as of June 30,
2008.
The notional amounts indicate the volumes in the use of derivatives,
but do not indicate the exposure to risk.
KEY RATIOS
EUR million 1-6/2009 1-6/2008 1-12/2008
Earnings per share, EUR 0.44 1.27 2.75
Equity/share at end of period, EUR 10.43 9.44 10.19
Return on equity (ROE), % (annualized) 8.7 23.9 26.0
Return on capital employed (ROCE) before
tax, % (annualized) 9.3 23.4 23.2
Return on capital employed (ROCE) after
tax, % (annualized) 7.4 17.3 17.3
Equity to assets ratio at end of period,
% 31.7 28.9 30.9
Gearing at end of period, % 70.2 79.5 75.7
Free cash flow 200 -40 29
Free cash flow/share, EUR 1.41 -0.28 0.20
Cash conversion, % 317 -22 7
Gross capital expenditure (excl. business
acquisitions) 55 112 255
Business acquisitions, net of cash
acquired 3 39 44
Depreciation and amortization 70 71 138
Number of outstanding shares at end of
period (thousands) 141,349 141,625 141,624
Average number of shares (thousands) 141,420 141,566 141,595
EXCHANGE RATES USED
1-6/ 1-6/ 1-12/ June 30, June 30, Dec 31,
2009 2008 2008 2009 2008 2008
USD (US dollar) 1.3579 1.5444 1.4726 1.4134 1.5764 1.3917
SEK (Swedish krona) 10.8806 9.4034 9.6833 10.8125 9.4703 10.8700
GBP (Pound sterling) 0.8931 0.7795 0.8023 0.8521 0.7923 0.9525
CAD (Canadian dollar) 1.6231 1.5497 1.5656 1.6275 1.5942 1.6998
BRL (Brazilian real) 2.9426 2.6025 2.6711 2.7469 2.5112 3.2441
FORMULAS FOR CALCULATION OF INDICATORS
Earnings/share:
Profit
Average number of shares during period
Equity/share:
Equity attributable to shareholders
Number of shares at end of period
Return on equity (ROE), %:
Profit x 100
Total equity (average for period)
Return on capital employed (ROCE) before tax, %:
Profit before tax + interest and other financial expenses
Balance sheet total - non-interest bearing liabilities x 100
(average for period)
Return on capital employed (ROCE) after tax, %:
Profit + interest and other financial expenses
Balance sheet total - non-interest bearing liabilities x 100
(average for period)
Gearing, %:
Net interest bearing liabilities x 100
Total equity
Equity to assets ratio, %:
Total equity x 100
Balance sheet total - advances received
Free cash flow:
Net cash provided by (used in) operating activities
- capital expenditures on maintenance investments
+ proceeds from sale of fixed assets
= Free cash flow
Cash conversion:
Free cash flow x 100
Profit
SEGMENT INFORMATION
NET SALES
4-6/ 4-6/ 1-6/ 1-6/ 7/2008- 1-12/
EUR million 2009 2008 2009 2008 6/2009 2008
Mining and Construction
Technology 531 665 1,059 1,199 2,446 2,586
Energy and Environmental
Technology 357 476 754 849 1,680 1,775
Paper and Fiber Technology 359 493 646 976 1,714 2,044
Valmet Automotive 14 19 35 42 58 65
Group Head Office and other - - - - - -
Group Head Office and others
total 14 19 35 42 58 65
Intra Metso net sales -14 -20 -27 -33 -64 -70
Metso total 1,247 1,633 2,467 3,033 5,834 6,400
OTHER OPERATING INCOME (+) AND EXPENSES (-), NET
4-6/ 4-6/ 1-6/ 1-6/ 7/2008- 1-12/
EUR million 2009 2008 2009 2008 6/2009 2008
Mining and Construction Technology 1.1 -4.0 3.2 1.5 5.6 3.9
Energy and Environmental Technology 1.6 -0.7 1.2 -0.1 0.1 -1.2
Paper and Fiber Technology -6.2 1.8 -5.3 1.9 -4.5 2.7
Valmet Automotive 0.1 0.0 0.1 0.0 0.1 0.0
Group Head Office and other 2.4 0.7 2.5 0.0 7.7 5.2
Group Head Office and others total 2.5 0.7 2.6 0.0 7.8 5.2
Metso total -1.0 -2.2 1.7 3.3 9.0 10.6
SHARE IN PROFITS OF ASSOCIATED COMPANIES
4-6/ 4-6/ 1-6/ 1-6/ 7/2008- 1-12/
EUR million 2009 2008 2009 2008 6/2009 2008
Mining and Construction Technology 0.0 0.1 0.0 0.1 0.0 0.1
Energy and Environmental Technology 0.3 0.3 0.6 0.5 1.3 1.2
Paper and Fiber Technology 0.5 0.3 0.5 0.7 1.0 1.2
Valmet Automotive - - - - - -
Group Head Office and other - - - - - -
Group Head Office and others total - - - - - -
Metso total 0.8 0.7 1.1 1.3 2.3 2.5
OPERATING PROFIT (LOSS)
4-6/ 4-6/ 1-6/ 1-6/ 7/2008- 1-12/
EUR million 2009 2008 2009 2008 6/2009 2008
Mining and Construction
Technology 46.0 91.0 100.9 169.2 290.1 358.4
Energy and Environmental
Technology 29.7 44.2 57.4 68.8 164.6 176.0
Paper and Fiber Technology -1.6 23.8 -19.8 48.7 61.6 130.1
Valmet Automotive -2.6 0.9 -2.9 1.9 -8.3 -3.5
Group Head Office and other -5.6 -4.7 -11.1 -13.8 -21.1 -23.8
Group Head Office and others
total -8.2 -3.8 -14.0 -11.9 -29.4 -27.3
Metso total 65.9 155.2 124.5 274.8 486.9 637.2
OPERATING PROFIT (LOSS), % OF
NET SALES
4-6/ 4-6/ 1-6/ 1-6/ 7/2008- 1-12/
% 2009 2008 2009 2008 6/2009 2008
Mining and Construction Technology 8.7 13.7 9.5 14.1 11.9 13.9
Energy and Environmental
Technology 8.3 9.3 7.6 8.1 9.8 9.9
Paper and Fiber Technology -0.4 4.8 -3.1 5.0 3.6 6.4
Valmet Automotive -18.6 4.7 -8.3 4.5 -14.3 -5.4
Group Head Office and other n/a n/a n/a n/a n/a n/a
Group Head Office and others total n/a n/a n/a n/a n/a n/a
Metso total 5.3 9.5 5.0 9.1 8.3 10.0
EBITA
4-6/ 4-6/ 1-6/ 1-6/ 7/2008- 1-12/
EUR million 2009 2008 2009 2008 6/2009 2008
Mining and Construction
Technology 46.9 91.8 102.5 170.7 293.0 361.2
Energy and Environmental
Technology 34.1 49.7 66.4 82.1 182.6 198.3
Paper and Fiber Technology 1.4 28.1 -12.6 58.0 75.5 146.1
Valmet Automotive -2.6 0.9 -2.9 1.9 -8.3 -3.5
Group Head Office and other -5.1 -4.0 -9.9 -12.5 -18.6 -21.2
Group Head Office and others
total -7.7 -3.1 -12.8 -10.6 -26.9 -24.7
Metso total 74.7 166.5 143.5 300.2 524.2 680.9
EBITA, % OF NET SALES
4-6/ 4-6/ 1-6/ 1-6/ 7/2008- 1-12/
% 2009 2008 2009 2008 6/2009 2008
Mining and Construction Technology 8.8 13.8 9.7 14.2 12.0 14.0
Energy and Environmental
Technology 9.6 10.4 8.8 9.7 10.9 11.2
Paper and Fiber Technology 0.4 5.7 -2.0 5.9 4.4 7.1
Valmet Automotive -18.6 4.7 -8.3 4.5 -14.3 -5.4
Group Head Office and other n/a n/a n/a n/a n/a n/a
Group Head Office and others total n/a n/a n/a n/a n/a n/a
Metso total 6.0 10.2 5.8 9.9 9.0 10.6
ORDERS RECEIVED
4-6/ 4-6/ 1-6/ 1-6/ 7/2008- 1-12/
EUR million 2009 2008 2009 2008 6/2009 2008
Mining and Construction
Technology 398 936 783 1,623 1,869 2,709
Energy and Environmental
Technology 278 367 543 749 1,452 1,658
Paper and Fiber Technology 335 441 614 874 1,761 2,021
Valmet Automotive 14 19 35 42 58 65
Group Head Office and other - - - - - -
Group Head Office and others
total 14 19 35 42 58 65
Intra Metso orders received -5 -23 -13 -39 -43 -69
Metso total 1,020 1,740 1,962 3,249 5,097 6,384
QUARTERLY INFORMATION
NET SALES
4-6/ 7-9/ 10-12/ 1-3/ 4-6/
EUR million 2008 2008 2008 2009 2009
Mining and Construction Technology 665 670 717 528 531
Energy and Environmental Technology 476 423 503 397 357
Paper and Fiber Technology 493 441 627 287 359
Valmet Automotive 19 10 13 21 14
Group Head Office and other - - - - -
Group Head Office and others total 19 10 13 21 14
Intra Metso net sales -20 -16 -21 -13 -14
Metso total 1,633 1,528 1,839 1,220 1,247
OTHER OPERATING INCOME (+) AND EXPENSES (-), NET
4-6/ 7-9/ 10-12/ 1-3/ 4-6/
EUR million 2008 2008 2008 2009 2009
Mining and Construction Technology -4.0 3.0 -0.6 2.1 1.1
Energy and Environmental Technology -0.7 -0.5 -0.6 -0.4 1.6
Paper and Fiber Technology 1.8 1.4 -0.6 0.9 -6.2
Valmet Automotive 0.0 0.0 0.0 0.0 0.1
Group Head Office and other 0.7 0.4 4.8 0.1 2.4
Group Head Office and others total 0.7 0.4 4.8 0.1 2.5
Metso total -2.2 4.3 3.0 2.7 -1.0
OPERATING PROFIT (LOSS)
4-6/ 7-9/ 10-12/ 1-3/ 4-6/
EUR million 2008 2008 2008 2009 2009
Mining and Construction Technology 91.0 97.9 91.3 54.9 46.0
Energy and Environmental Technology 44.2 51.2 56.0 27.7 29.7
Paper and Fiber Technology 23.8 34.5 46.9 -18.2 -1.6
Valmet Automotive 0.9 -2.9 -2.5 -0.3 -2.6
Group Head Office and other -4.7 -8.4 -1.6 -5.5 -5.6
Group Head Office and others total -3.8 -11.3 -4.1 -5.8 -8.2
Metso total 155.2 172.3 190.1 58.6 65.9
EBITA
EUR million 4-6/2008 7-9/2008 10-12/2008 1-3/2009 4-6/2009
Mining and
Construction
Technology 91.8 98.6 91.9 55.6 46.9
Energy and
Environmental
Technology 49.7 55.7 60.5 32.3 34.1
Paper and Fiber
Technology 28.1 36.9 51.2 -14.0 1.4
Valmet Automotive 0.9 -2.8 -2.6 -0.3 -2.6
Group Head Office
and other -4.0 -7.7 -1.0 -4.8 -5.1
Group Head Office and
others total -3.1 -10.5 -3.6 -5.1 -7.7
Metso total 166.5 180.7 200.0 68.8 74.7
CAPITAL EMPLOYED
June 30, Sep 30, Dec 31, Mar 31, June 30,
EUR million 2008 2008 2008 2009 2009
Mining and Construction
Technology 1,120 1,226 1,230 1,221 1,191
Energy and Environmental
Technology 621 640 647 686 659
Paper and Fiber Technology 532 480 532 468 475
Valmet Automotive 22 23 21 19 20
Group Head Office and
other 496 390 458 493 816
Group Head Office and
others total 518 413 479 512 836
Metso total 2,791 2,759 2,888 2,887 3,161
ORDERS RECEIVED
EUR million 4-6/2008 7-9/2008 10-12/2008 1-3/2009 4-6/2009
Mining and
Construction
Technology 936 747 339 385 398
Energy and
Environmental
Technology 367 568 341 265 278
Paper and Fiber
Technology 441 940 207 279 335
Valmet Automotive 19 10 13 21 14
Group Head Office
and other - - - - -
Group Head Office and
others total 19 10 13 21 14
Intra Metso orders
received -23 -19 -11 -8 -5
Metso total 1,740 2,246 889 942 1,020
ORDER BACKLOG
June 30, Sep 30, Dec 31, Mar 31, June 30,
EUR million 2008 2008 2008 2009 2009
Mining and Construction
Technology 1,850 1,964 1,492 1,347 1,196
Energy and Environmental
Technology 1,253 1,402 1,204 1,182 1,035
Paper and Fiber Technology 1,441 1,931 1,434 1,438 1,304
Valmet Automotive - - - - -
Group Head Office and
other - - - - -
Group Head Office and
others total - - - - -
Intra Metso order backlog -50 -53 -42 -33 -23
Metso total 4,494 5,244 4,088 3,934 3,512
June 30, Sep 30, Dec 31, Mar 31, June 30,
PERSONNEL 2008 2008 2008 2009 2009
Mining and Construction
Technology 10,503 10,829 11,259 10,826 10,344
Energy and Environmental
Technology 6,311 6,317 6,357 6,387 6,349
Paper and Fiber Technology 10,089 10,661 10,544 10,090 9,858
Valmet Automotive 779 579 783 618 636
Group Head Office and
other 387 376 379 391 421
Group Head Office and
others total 1,166 955 1,162 1,009 1,057
Metso total 28,069 28,762 29,322 28,312 27,608
Notes to the Interim Review
We have prepared this Interim Review in accordance with IAS 34
'Interim Financial Reporting'. The same accounting policies have been
applied as in the annual financial statements. This Interim Review is
unaudited.
New accounting standards
IFRS 3 (Revised)
IASB has published IFRS 3 (Revised), 'Business combinations', which
maintains the requirement to apply the acquisition method to business
combinations, but with some significant changes such as expensing of
transaction costs. In addition, all payments to purchase a business
are to be recorded at fair value on the acquisition date, with some
contingent payments subsequently remeasured at fair value through
income. Goodwill may be calculated based on the parent's share of net
assets or it may include goodwill related to the minority interest.
We are currently evaluating the effects on our financial statements
but expect affect only future business combinations.
IFRS 3 (Revised) was endorsed by the European Union in June 2009 and
it becomes effective for annual financial statements for periods
beginning on or after July 1, 2009. We will apply the standard for
the financial year beginning on January 1, 2010.
IAS 27 (Revised)
IASB has published IAS 27 (Revised), 'Consolidated and separate
financial statements'. The revised standard requires the effects of
all transactions with non-controlling interests to be recorded in
equity if there is no change in control. They will no longer result
in goodwill or gains and losses. The standard also specifies the
accounting when control is lost. Any remaining interest in the entity
is remeasured to fair value and a gain or loss is expensed. We do not
expect the standard to affect our financial statements.
IAS 27 (Revised) was endorsed by the European Union in June 2009 and
it is effective for annual financial statements for periods beginning
on or after July 1, 2009. We will apply the standard for the
financial year beginning on January 1, 2010.
Subpoena from the United States Department of Justice requiring Metso
to produce documents
In November 2006, Metso Minerals Industries, Inc., which is our U.S.
subsidiary, received a subpoena from the Antitrust Division of the
United States Department of Justice calling for Metso Minerals
Industries, Inc. to produce certain documents. The subpoena relates
to an investigation of potential antitrust violations in the rock
crushing and screening equipment industry. We are cooperating fully
with the Department of Justice.
Decisions of our Annual General Meeting
Our Annual General Meeting on March 31, 2009 approved the accounts
for 2008 and decided to discharge the members of the Board of
Directors and the President and CEO from liability for the financial
year 2008. In addition, the Annual General Meeting approved the
proposals of the Board of Directors to authorize the Board of
Directors to resolve of a repurchase of Metso's own shares, to issue
new shares and to grant special rights.
The Annual General Meeting decided that a dividend of EUR 0.70 per
share will be paid for the financial year which ended on December 31,
2008. The dividend was paid on April 15, 2009. In addition, the
Annual General Meeting authorized the Board of Directors to decide,
at its discretion and when the economic situation of Metso favors it,
on the payment of a dividend of no more than EUR 0.68 per share in
addition to the above mentioned dividend.
Jukka Viinanen was elected Chairman of the Board and Jaakko Rauramo
was elected Vice Chairman of the Board. Pia Rudengren was elected a
new member of the Board. The Board members re-elected were
Maija-Liisa Friman, Christer Gardell, Arto Honkaniemi and Yrjö Neuvo.
Our long-term chairman of the board, Matti Kavetvuo informed that he
is not available for re-election. The term of office of Board members
lasts until the end of the next Annual General Meeting.
The Annual General Meeting decided that the annual remunerations for
Board members be EUR 92,000 for the Chairman, EUR 56,000 for the Vice
Chairman and EUR 45,000 for the members and that the meeting fee
including committee meetings be EUR 600 for each meeting they attend.
The auditing company, Authorized Public Accountant
PricewaterhouseCoopers Oy was re-elected to act as the Auditor of
Metso until the end of the next Annual General Meeting.
The Annual General Meeting decided to establish a Nomination
Committee of the Annual General Meeting to prepare proposals for the
following Annual General Meeting regarding the composition of the
Board of Directors and director remuneration. Representatives of the
four biggest shareholders are elected to the Nomination Committee;
the Committee additionally comprises as expert members the Chairman
of the Board of Directors as well as one member who is appointed by
the Board of Directors from among its members who is independent of
significant shareholders.
Members of Metso board committees and personnel representative
Our Board of Directors elected members from among the Board for the
Audit Committee and Remuneration and HR Committee at its assembly
meeting on March 31, 2009. The Board's Audit Committee consists of
Maija-Liisa Friman (Chairman), Arto Honkaniemi and Pia Rudengren. The
Board's Remuneration and HR Committee consists of Jukka Viinanen
(Chairman), Christer Gardell, Yrjö Neuvo and Jaakko Rauramo.
Metso's personnel groups in Finland have elected Jukka Leppänen as
the personnel representative. He participates in the meetings of our
Board of Directors as an invited expert, and his term of office is
the same as the Board members' term.
Shares, options and share capital
At the end of June, our share capital was EUR 240,982,843.80 and the
number of shares was 141,754,614. The number of shares includes
360,841 Metso shares held by the parent company and 44,318 Metso
shares held by a limited partnership consolidated in our consolidated
financial statements. Together these represent 0.29 percent of all
the shares and votes. The average number of shares outstanding in
January-June of 2009, excluding Metso shares held by the company, was
141,420,062.
During February we executed a repurchase of 300,000 of our own shares
relating to our incentive program announced in October 2008 (Metso
Share Ownership Plan 2009-2011). We purchased our own shares with the
distributable funds thus reducing distributable non-restricted
equity. We purchased the shares at market price in public trading on
the NASDAQ OMX in Helsinki Exchange. The average purchase price per
share was EUR 8.28 and the total amount EUR 2,483,495.48.
Our market capitalization, excluding Metso shares held by the
company, was EUR 1,880 million on June 30, 2009.
Share ownership plans
Share-based rewards for the 2008 share ownership plan were
distributed in March 2009 based on the earnings criteria determined
by our Board of Directors. The plan targeted around 100 of our
executives, of which 60 met a certain part of the criteria, including
the entire Executive Team. The number of shares distributed as
rewards was 34,265, corresponding to approximately 0.02 percent of
all Metso shares. Members of our Executive Team received 6,996
shares. The maximum reward from the plan was limited to each person's
annual salary.
In October 2008, our Board approved a new, share-based incentive plan
for the Metso Group management. The plan is called Metso Share
Ownership Plan 2009-2011 (SOP 2009-2011). The plan includes one
three-year earnings period and is initially targeted at about 100 key
managers, out of which 90 decided to participate. The maximum number
of shares to be allocated in the incentive plan is approximately
376,000 Metso shares obtained in public trading, therefore, the plan
will have no diluting effect on the share value. More information on
SOP 2009-2011 can be found in our Annual Report 2008.
Trading of Metso shares
The number of Metso Corporation shares traded on the NASDAQ OMX
Helsinki Exchange in January-June 2009 was 196,227,978 shares,
equivalent to a turnover of EUR 1,948 million. The share price on
June 30, 2009 was EUR 13.30 and the average trading price for the
period was EUR 9.93. The highest quotation during the review period
was EUR 15.03 and the lowest EUR 7.03.
Metso's ADSs (American Depositary Shares) are traded in the United
States on the OTC market. On June 30, 2009, the closing price of an
ADS was USD 18.74. Each ADS represents one share.
Disclosures of changes in holdings
On March 24, 2009, UBS AG's group holding in Metso's shares exceeded
the 5 percent threshold. The holding amounted to 7,541,753 shares,
which corresponds to 5.32 percent of the paid up share capital and
votes in Metso.
On March 27, 2009, UBS AG's group holding in Metso's shares fell
below the 5 percent threshold. The holding amounted to 561,306
shares, which corresponds to 0.40 percent of the paid up share
capital and votes in Metso.
There were no changes in holdings during the second quarter of the
year.
Credit ratings
In January, Moody's Investor Service confirmed Metso's Baa2 long-term
credit rating and changed the outlook from stable to negative.
In February, Standard & Poor's confirmed Metso's BBB long term credit
rating and changed the outlook from stable to negative. At the same
time our short-term credit rating was lowered from A-2 to A-3.
There were no changes in credit ratings during the second quarter of
the year.
Metso's Financial Reporting in 2009
The Interim Review for January-September 2009 will be published on
October 29.
Metso is a global supplier of sustainable technology and services for
mining, construction, power generation, automation, recycling and the
pulp and paper industries. We have about 28,000 employees in more
than 50 countries. www.metso.com
Further information, please contact:
Jorma Eloranta, President and CEO, Metso Corporation, tel. +358
(0)204 84 3000
Olli Vaartimo, Executive Vice President and CFO, Metso Corporation,
tel. +358 (0)204 84 3010
Johanna Henttonen, Vice President, Investor Relations, Metso
Corporation, tel. +358 (0)204 84 3253
Metso Corporation
Olli Vaartimo
Executive Vice President and CFO
Kati Renvall
Vice President, Group Communications
Distribution:
NASDAQ OMX Helsinki Ltd
Media
www.metso.com
