Metso's Financial Statements Review for 2013

Metso's Financial Statements Review for 2013 Metso Corporation's stock exchange release on February 6, 2014 at 12:00 noon local time We will arrange a news conference on Metso's Financial Statements Review for 2013 for the media, investors and analysts, in Helsinki today. The event takes place at Metso Group Head Office, Fabianinkatu 9 A, Helsinki, Finland. A News conference in English will be arranged at 15:00 EEST / Helsinki time (08:00 EDT / New York, 13:00 BST / London, 14:00 CEST / Paris). The news conference can also be followed through a live webcast at and through a conference call. Questions are accepted via conference call. Details of the event can be found at the end of this release. This is a summary of Metso's Financial Statements Review for 2013. Complete report is attached to this release as a pdf-file and is also available at Figures in brackets refer to the comparison period, i.e. the same period last year, and all figures relate to Metso's continuing operations, unless otherwise stated. Highlights of 2013 * Investment activity and demand for equipment and services related to the oil & gas industry remained good, while mining was soft. * Orders received: EUR 3,709 million (EUR 4,215 million), of which EUR 2,038 million (2,153 million) came from services orders. * Net sales: EUR 3,858 million (EUR 4,282 million), of which EUR 1,976 million (EUR 2,072) came from services sales. * EBITA before non-recurring expenses: EUR 496 million, 12.8% of net sales (EUR 486 million, 11.4%). Non-recurring expenses totaled EUR 54 million (EUR 11 million). * The Board will propose a dividend of EUR 1.00 per share, i.e. 63% of earnings per share * The Pulp, Paper and Power businesses were demerged to create Valmet Corporation. Highlights of the last quarter of 2013 * Orders received: EUR 885 million (EUR 982 million), of which EUR 457 million (EUR 494 million) came from services orders. * Net sales: EUR 1,018 million (EUR 1,132 million), of which EUR 509 million (EUR 550 million) came from services sales. * EBITA before non-recurring expenses: EUR 147 million, i.e. 14.4% of net sales (EUR 138 million and 12.2%). Non-recurring expenses totaled EUR 33 million. Financial guidance for 2014 Market activity is estimated to remain similar to 2013 but due to EUR 400 million lower opening backlog than one year ago we estimate that our net sales in 2014 will be somewhat below 2013. Continuing cost efficiency actions are expected to support our profitability and we estimate that our 2014 EBITA margin before non-recurring items will be at around 12 percent of net sales. Metso's President and CEO Matti Kähkönen: Business activity in our core industries during the last quarter of 2013 remained similar to the level earlier in the year. Mining customers continued to be cautious about new investments throughout the year, while good demand in the oil & gas industry yielded an all-time high annual order intake for our Automation segment. Underlying demand for our services business continued to be good, but was somewhat offset by weaker rebuild activity and destocking during the first half. Lower order intake resulted in a drop in net sales during the last quarter and for the year as a whole. Orders and net sales were both negatively impacted by the strengthening of the euro compared to other currencies during the second half. Given this background, we are pleased that we were able to improve our profitability. Our EBITA margin excluding non-recurring items increased significantly, which resulted from cost efficiency and sales mix improvements across the Group. We do not anticipate any major changes in terms of demand for 2014, and as a result we will push ahead with our global efficiency programs designed to support our profitability. As a conclusion, I would like to mention our single largest undertaking last year was the demerger of the Pulp, Paper and Power businesses to create Valmet Corporation. This was completed successfully and we are now well on our way to developing Metso into a more integrated and agile company and one that is better able to create value for our stakeholders. Metso's key figures Q4/ Q4/ EUR million 2013 2012 Change % 2013 2012 Change % ------------------------------------------------------------------------------- Orders received 885 982 -10 3,709 4,215 -12 Orders received of services business 457 494 -7 2,038 2,153 -5          % of orders received 52 50   55 51 Order backlog at the end of the period       1,927 2,324 -17 Net sales 1,018 1,132 -10 3,858 4,282 -10 Net sales of services business 509 550 -7 1,976 2,072 -5          % of net sales 50 49   51 48 Earnings before interests, tax and amortization (EBITA) and non- recurring items 147 138 6 496 486 2          % of net sales 14.4 12.2   12.8 11.4 Operating profit *()) 108 126 -14 423 458 -8          % of net sales 10.6 11.1   11.0 10.7 Earnings per share, EUR 0.35 0.36 3 1.59 1.71 -12 Free cash flow       224 257 Return on capital employed (ROCE) before taxes, %       15.6 18.2 Return on equity (ROE), %       15.5 17.4 Equity to asset ratio at the end of the period, %       36.9 40.5 Net gearing at the end of the period, %       41.6 14.2 *()) The full year 2013 operating profit was negatively impacted by EUR 54 million of non-recurring items (EUR 11 million) and fourth quarter by EUR 33 million (EUR 9 million). Non-recurring items are detailed in the tables section. Note: Valmet (previously Metso's Pulp, Paper and Power businesses) and Valmet Automotive (previously a Metso subsidiary) are reported in consolidated financial statements for 2013 as discontinued operations (IFRS 5). The post-tax net profit of discontinued operations will be presented as a single figure at the bottom of Metso's income statement. The net assets of discontinued operations are excluded from Metso's balance sheet as of December 31, 2013 and are included in the balance  sheet  as of December 31, 2012.. Earnings per share for discontinued operations are reported separately from continuing operations, and Metso's equity per share as of December 31, 2013 excludes the net assets of discontinued operations. Short-term outlook Market development We expect demand for mining equipment and projects to be weak. Due to our large installed equipment base and our stronger services presence, we expect demand for our mining services to remain good. Demand for construction equipment and related services is projected to remain satisfactory. Demand for our process automation systems is expected to remain satisfactory, whereas demand for flow control products and related services is expected to remain good. Metso is a leading process performance provider, with customers in the mining,construction,and oil & gas industries. Metso is also known for its advanced automation solutions for pulp, paper and power generation. Our focus is on the continuous development of intelligent solutions that improve sustainability and profitability. Metso's shares are listed on the NASDAQ OMX Helsinki Ltd. Metso employs around 16,000 professionals in 50 countries. Expect results., For further information, please contact: Matti Kähkönen, President and CEO, Metso Corporation, tel. +358 20 484 3000 Harri Nikunen, CFO, Metso Corporation, tel. +358 20 484 3010 Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel. +358 20 484 3253 Metso Corporation Harri Nikunen CFO Juha Rouhiainen VP, Investor Relations Invitation to news conference for investors, analysts and media Metso will arrange the news conference for media, investors and analysts at Metso Group Head Office, Fabianinkatu 9 A, Helsinki, today, on February 6, 2014 at: 08:00 EST / New York 13:00 GMT / London 14:00 CET / Paris 15:00 EET / Helsinki This conference can also be followed through a live webcast at and a conference call from 15:00 EET onwards. Questions are accepted during the event via conference call. Due to live webcast, we kindly ask those attending in person to be present 5 minutes prior to the start of the event. Conference call details Conference call participants are requested to dial in five minutes before the scheduled time at: US: +1 877 491 0064 other countries: +44 20 7162 0077 access code: 940 040 A replay of the call will be available for two weeks until February 20, 2014 on the following phone numbers: US: +1 954 334 0342 other countries: +44 20 7031 4064 access code 940 040 An audio file (mp3) and a transcript of the event will be made available for downloading at on Monday, February 10, 2014. The presentation material will be available after the publication of the Financial Statements Review on February 6, 2014 at at approximately 12.00 noon EET. Distribution: NASDAQ OMX Helsinki Ltd Media Metso_Financial_Statement_2013: This announcement is distributed by GlobeNewswire on behalf of GlobeNewswire clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Metso Corporation via GlobeNewswire [HUG#1759769]