Metso's Interim Review, January 1 - September 30, 2009
* Reuters is not responsible for the content in this press release.
HELSINKI, FINLAND, Oct 29 (MARKET WIRE) --
Metso's Company Release on October 29, 2009 at 12.00 p.m. local time
Good profitability and strong cash flow
Highlights of the third quarter of 2009
* New orders worth EUR 1,031 million were received in
July-September i.e. 54 percent less than in the previous year (EUR
2,246 million in Q3/08).
* At the end of September, the order backlog was 18 percent
lower than at the end of December 2008, amounting to EUR 3,340
million (EUR 4,088 million at December 31, 2008).
* Net sales decreased by 22 percent, and were at EUR 1,196
million (EUR 1,528 million in Q3/08).
* Earnings before interest, tax and amortization (EBITA)
were EUR 124.6 million, i.e. 10.4 percent of net sales (EUR 180.7
million and 11.8% in Q3/2008).
* Operating profit (EBIT) was EUR 114.1 million, i.e. 9.5
percent of net sales (EUR 172.3 million and 11.3% in Q3/08).
* EBITA and EBIT includes EUR 17 million in non-recurring
expenses relating to capacity adjustment measures. EBITA margin
before them was 11.9 percent.
* Earnings per share were EUR 0.44 (EUR 0.69 in Q3/08).
* Free cash flow was EUR 249 million (EUR 91 million in
Q3/08).
* Return on capital employed (ROCE) before taxes was 11.1
percent (23.3% in Q3/08).
"I am very pleased to report good profitability and strong free cash
flow during the third quarter despite the demanding operating
environment. It confirms that Metso's cost structure and way of operating
are a lot more flexible today than during the previous down turn. Our
good performance was also supported by savings from the capacity and cost
base adjustment actions that we already started a year ago," says Jorma
Eloranta, President and CEO of Metso Corporation.
"Our operating environment continues to be demanding. While we are seeing
first signs of gradual recovery in the global economy, and believe that
we have now reached the lowest point in market demand, the world economy
is far from stable, and there remains uncertainty about the timing and
strength of the recovery. Although we estimate that our 2010 net sales
will be lower than this year, we expect our profitability to be
satisfactory. We have kept this year's guidance intact," Eloranta notes.
"During the past year we have considerably strengthened our long-term
competitiveness by introducing new ways to operate across Metso. We
believe that we have now taken the majority of the actions required to
adjust our cost base and capacity to the demand environment in the
near-term. We continue to be alert in case further actions are required.
We are now shifting focus to sales efforts and to strengthen our product
and services offering. Through these actions we ensure that Metso will
emerge as a winner from this downturn," concludes Eloranta.
Metso's key figures
EUR million Q3/09 Q3/08 Change Q1-Q3/ Q1-Q3/ Change 2008
% 2009 2008 %
Net sales 1,196 1,528 -22 3,663 4,561 -20 6,400
Net sales of services 499 586 -15 1,527 1,693 -10 2,343
business
% of net sales 42 39 42 38 37
EBITA before
non-recurring capacity 141.9 180.7 -21 311.7 480.9 -35 680.9
adjustment expenses
% of net sales 11.9 11.8 8.5 10.5 10.6
Earnings before
interest, tax and 124.6 180.7 -31 268.1 480.9 -44 680.9
amortization (EBITA)
% of net sales 10.4 11.8 7.3 10.5 10.6
Operating profit 114.1 172.3 -34 238.6 447.1 -47 637.2
% of net sales 9.5 11.3 6.5 9.8 10.0
Earnings per share, EUR 0.44 0.69 -36 0.88 1.96 -55 2.75
Orders received 1,031 2,246 -54 2,993 5,495 -46 6,384
Order backlog at end of 3,340 5,244 -36 4,088
period
Free cash flow 249 91 174 449 51 780 29
Return on capital
employed (ROCE) 11.1 23.3 23.2
before taxes,
annualized, %
Equity to assets ratio
at end of 33.2 31.5 30.9
period, %
Gearing at end of 51.1 72.2 75.7
period, %
Metso's third quarter 2009 review
Operating environment and demand for products in July-September
Our operating environment continued to be demanding in the third quarter.
Our customers were still cautious in their investment decisions, which
affected our equipment sales and project businesses in particular.
Most of the mining companies have continued to operate with clearly lower
investment budgets than in the peak levels of the past few years. In the
third quarter, some mining companies upgraded their capital expenditure
plans for 2010 because of the positive metal price development combined
with an expectation of a gradual recovery in the global economy. However,
these plans are yet to be shown in increased market activity. Due to our
strong product and services offering and the significant increase in our
installed equipment base during the past few years, demand for our
replacement equipment and services by our mining customers continued to
be satisfactory. In the construction industry, demand for equipment used
in aggregates production was weak primarily because the capacity
installed in recent years remained underutilized. Demand for our
construction industry services business was satisfactory. Many countries
have introduced stimulus measures relating to infrastructure development
which are expected to have a positive effect on the demand for
construction industry products, but which, for the present, have had
little effect.
Demand for power plants utilizing renewable energy sources was
satisfactory in Europe and North America. The demand for power plants
fuelled by biomass and waste has been boosted as several countries have
announced plans to stimulate the use of renewable energy sources.
However, the limited availability of financing delayed the
decision-making in many of these projects. Demand for our automation and
flow control solutions continued at a low level due to capital
expenditure plan cuts both in the energy as well as in the paper and pulp
customer industries. Demand for metals recycling equipment continued to
be weak, owing to reduction in steel production and low price of scrap
metal. The demand for the services business in our Energy and
Environmental Technology segment was satisfactory.
Demand for fiber lines was weak in the third quarter. The demand for new
paper and board lines in China was supported partly by local economic
stimulus measures and continued to be satisfactory. In the rest of the
world the demand continued to be very weak. Demand for tissue machines
was satisfactory. Capacity utilization rates in the pulp and paper
industry continued to be low in the third quarter, and demand for the
services business was weak especially in North America and Europe.
Orders received in July-September
We received new orders worth EUR 1,031 million in July-September. Orders
received were at the same level as during the past three quarters. The
value of the orders declined by 54 percent from the comparison period.
Orders declined in all reporting segments. Previously received orders
equaling some EUR 20 million were canceled from the order backlog during
the third quarter, the majority consisting of construction equipment.
Orders received by Mining and Construction Technology in July-September
equaled EUR 420 million, which was 44 percent less than in the comparison
period. The orders received from mining customers decreased by one-half
on the very strong comparison period. Orders received consisted mainly of
replacement equipment and services orders. Orders received from
construction customers declined only by 20 percent from the comparison
period because the construction business was the first one to be hit by
the global market turmoil already during the third quarter of last year.
The largest new order was a delivery of a fine crushing and screening
system for Norsk Stein in Norway.
Orders received by the Energy and Environmental Technology segment during
the third quarter totaled EUR 250 million, down 56 percent on the
comparison period. Orders received by the Power business line declined by
70 percent. The comparison period was exceptionally strong due to two
large recovery boiler orders. Orders received decreased by one third in
the Automation business line due to strong investment budget cuts in the
paper and pulp and energy industries. Orders received by the Recycling
business line decreased by close to 60 percent due to customers' low
capacity utilization rates. Orders received during the third quarter
included a power boiler project for Industrias Celulosa Aragonesa's
(SAICA) new waste-to-energy power plant in Spain and an extensive
automation package for Shandong Huatai Paper's new paper machine line in
China.
Orders received by our Paper and Fiber Technology segment in
July-September fell by 61 percent from the comparison period and totaled
EUR 369 million. The orders received in the comparison period included
two large pulp mill projects. The Paper business line's orders included
the world's largest fine paper line order for Zhanjiang Chenming Pulp &
Paper's new pulp and paper mill, and a board machine for Fujian Liansheng
Paper, both in China. Similarly in China, we concluded agreements with
MCC Meili Paper Industry Co. Ltd for a lightweight-coated papermaking
line as well as with Shouguang MeiLun Paper Co. Ltd. for the delivery of
a large coated fine paper production line. These two orders, together
worth over EUR 200 million, are awaiting final contracts before being
included in the order backlog. The Tissue business line's orders were at
a high level during the third quarter but the Fiber business line
received very few new orders and its market outlook continues to be
demanding. Orders for the services business remained weak.
Financial performance in July-September
In July-September, our net sales were EUR 1,196 million, which was 22
percent less than a year earlier (EUR 1,528 million in Q3/08). While the
services business net sales decreased by 15 percent on the comparison
period, they accounted for 42 percent of net sales (39% in Q3/08).
Earnings before interest, tax and amortization (EBITA) for the third
quarter were EUR 124.6 million, i.e. 10.4 percent of net sales (EUR 180.7
million and 11.8% in Q3/08). EBITA includes about EUR 17 million in
non-recurring expenses resulting from capacity adjustment measures. The
biggest part of these, about EUR 11 million, is related to closures of
some smaller business units and personnel reductions in Mining and
Construction Technology. Personnel reductions in Paper and Fiber
Technology account for about EUR 3 million and personnel reductions in
Energy and Environmental Technology also for about EUR 3 million. The
EBITA margin before these non-recurring capacity adjustment expenses was
11.9 percent. The financial result also includes close to EUR 8 million
in capital gains from the sale of shares in Talvivaara Mining Company
Plc. Metso's operating profit was EUR 114.1 million, i.e. 9.5 percent of
net sales (EUR 172.3 million and 11.3% in Q3/08). The weakening of the
financial performance on the comparison period resulted mainly from the
22 percent decrease in net sales and the low capacity utilization rates
of several production and engineering units.
EBITA in the third quarter was strong compared to the year's first two
quarters. This was partly due to improved gross margin levels in some
large projects in the Paper and Power business lines as a result of lower
procurement prices and overall successful implementation of the projects.
Third-quarter financial performance was also supported by almost EUR 30
million lower sales, general and administration costs than during the
first two quarters of the year mainly as a result of low labour costs
related to holiday period and high level of temporary lay-offs in Finland
and savings resulting from capacity adjustment measures implemented
during the first half of the year.
The profit attributable to shareholders was EUR 62 million (EUR 97
million in Q3/08) in the third quarter, corresponding to earnings per
share (EPS) of EUR 0.44 (EUR 0.69 per share in Q3/08).
Free cash flow was strong during the third quarter, and was EUR 249
million. The positive cash flow development was supported by a continued
strong EUR 159 million decrease of net working capital. One key element
in net working capital release was EUR 97 million decrease of inventories
in the Mining and Construction Technology segment.
Metso's January-September 2009 Interim Review
Orders received and order backlog
Orders received in January-September totaled EUR 2,993 million, down 46
percent on the comparison period. Previously received orders worth EUR
278 million were canceled in January-September. These order cancellations
were booked off directly from our order backlog and therefore had no
impact on reported orders received neither on the reporting period nor on
the comparison period. Almost EUR 200 million of the cancellations
related to the Zhanjiang Chenming pulp project, around EUR 51 million to
our Construction business line and some EUR 20 million to the Recycling
business line.
China, the United States and Finland generated the largest total value of
orders received. The share of emerging markets in orders received was 49
percent (51% in Q1-Q3/08). All of our segments reported a decrease in
orders received as our customers hesitated to make new investment
decisions.
At the end of September, our order backlog was EUR 3,340 million, which
is 18 percent less than at the end of 2008. Around EUR 1.2 billion of the
deliveries in our end-of-September order backlog are expected to be
completed in 2009, around EUR 1.6 billion in 2010 and the remainder at a
later time. The order backlog includes some EUR 600 million in projects
with somewhat uncertain delivery schedules and which will, according to
present estimates, be delivered after 2010. These projects include, among
others, the pulp mill project for Fibria, a new company created by the
merger of Votorantim and Aracruz in Brazil.
Orders received by reporting segments
Q1-Q3/2009 Q1-Q3/2008
EUR million % of orders EUR million % of orders
received received
Mining and
Construction 1,203 40 2,370 43
Technology
Energy and
Environmental 793 26 1,317 24
Technology
Paper and Fiber 983 33 1,814 32
Technology
Valmet Automotive 42 1 52 1
Intra-Metso orders -28 -58
received
Total 2,993 100 5,495 100
Orders received by market area
+-------------------------------------------------------------------+
| | Q1-Q3/2009 | Q1-Q3/2008 |
|-------------------------+--------------------+--------------------|
| | EUR | % of | EUR | % of |
| | million | orders | million | orders |
| | | received | | received |
|-------------------------+---------+----------+---------+----------|
| Europe | 1,081 | 36 | 1,908 | 35 |
|-------------------------+---------+----------+---------+----------|
| North America | 509 | 17 | 883 | 16 |
|-------------------------+---------+----------+---------+----------|
| South and Central | 345 | 12 | 1,028 | 19 |
| America | | | | |
|-------------------------+---------+----------+---------+----------|
| Asia-Pacific | 869 | 29 | 1,333 | 24 |
|-------------------------+---------+----------+---------+----------|
| Rest of the world | 189 | 6 | 343 | 6 |
|-------------------------+---------+----------+---------+----------|
| Total | 2,993 | 100 | 5,495 | 100 |
+-------------------------------------------------------------------+
Net sales
Our net sales for January-September decreased by 20 percent on the
comparison period and were EUR 3,663 million (EUR 4,561 million in
Q1-Q3/08). Net sales decreased in all reporting segments: in Mining and
Construction Technology by 17 percent, in Energy and Environmental
Technology by 13 percent and in Paper and Fiber Technology by 29 percent.
The net sales of our services business declined by 10 percent and its
share of total net sales was 42 percent (38% in Q1-Q3/08).
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-Q3/2009 Q1-Q3/2008
EUR million % of net EUR million % of net
sales sales
Mining and
Construction 1,551 42 1,869 40
Technology
Energy and
Environmental 1,104 30 1,272 28
Technology
Paper and Fiber 1,002 27 1,417 31
Technology
Valmet Automotive 42 1 52 1
Intra-Metso net sales -36 -49
Total 3,663 100 4,561 100
Net sales by market area
Q1-Q3/2009 Q1-Q3/2008
EUR million % of net EUR million % of net
sales sales
Europe 1,589 43 1,913 42
North America 574 16 722 16
South and Central 458 12 557 12
America
Asia-Pacific 755 21 1,082 24
Rest of the world 287 8 287 6
Total 3,663 100 4,561 100
Financial result
Our earnings before interest, tax and amortization (EBITA) for
January-September weakened from the comparison period and were EUR 268.1
million, or 7.3 percent of net sales (EUR 480.9 million and 10.5% in
Q1-Q3/08). Our financial result includes non-recurring expenses of some
EUR 44 million resulting from capacity adjustment measures, of which
around EUR 22 million are related to Paper and Fiber Technology, some EUR
16 million to Mining and Construction Technology and almost EUR 6 million
to Energy and Environmental Technology. Our EBITA before non-recurring
capacity adjustment expenses was EUR 311.7 million or 8.5 percent. Other
significant non-recurring items were some EUR 14 million capital gains
from the sale of shares in Talvivaara Mining Company Plc, EUR 9 million in
non-recurring expenses from dissolving hedging arrangements related to
the cancellation of our Chinese customer Zhanjiang Chenming's pulp mill
project and EUR 4 million credit loss reserve related to the initiation
of the bankruptcy proceedings of two of our paper industry customers.
The EBITA for Mining and Construction Technology in January-September was
EUR 157.2 million, declining from the previous year primarily due to the
Construction business line's low delivery volumes and capacity
utilization rates in all its manufacturing units.
The EBITA for Energy and Environmental Technology was EUR 103.5 million,
which was 25 percent weaker than the previous year mainly due to lower
net sales in all business lines.
The EBITA for Paper and Fiber Technology was EUR 19.8 million, 79 percent
weaker than during the comparison period due to almost 30 percent lower
net sales, high non-recurring capacity adjustment expenses and the low
utilization rates in many units.
Our operating profit in January-September was EUR 238.6 million, or 6.5
percent of net sales (EUR 447.1 million and 9.8% in Q1-Q3/08). Operating
profit before non-recurring expenses related to capacity adjustment
measures was EUR 282.2 million or 7.7 percent of net sales.
Our net financing expenses in January-September were EUR 59 million (EUR
54 million in Q1-Q3/08). Due to the higher debt level compared to last
year, our interest expenses increased by EUR 5 million and were EUR 56
million (EUR 51 million in Q1-Q3/08).
Our profit before tax was EUR 180 million (EUR 393 million), and our tax
rate for 2009 is estimated to be about 30 percent (30% in 2008). The
profit attributable to shareholders was EUR 125 million (EUR 277 million)
in January-September, corresponding to earnings per share (EPS) of EUR
0.88 (EUR 1.96 per share).
The return on capital employed (ROCE) before taxes in January-September
was 11.1 percent (23.3%) and return on equity (ROE) was 11.4 percent
(24.5%).
Cash flow and financing
Net cash provided by operating activities for January-September was EUR
487 million (EUR 129 million in Q1-Q3/08).
One of our key targets for this year has been to release cash from net
working capital. Our target for 2009 was to release at least EUR 200
million and for 2009-2010 in total about EUR 500 million. During
January-September, EUR 294 million of net working capital was released,
clearly ahead of our minimum target for 2009. Our inventories have come
down EUR 341 million and trade receivables EUR 188 million. On the other
hand, trade payables decreased by EUR 182 million. Inventories in Mining
and Construction Technology have decreased by EUR 277 million from the
beginning of the year as a result of the ongoing inventory control
initiative.
Free cash flow for January-September was EUR 449 million (EUR 51 million
in Q1-Q3/08).
Our net interest-bearing liabilities totaled EUR 797 million at the end
of September (EUR 1,099 million at December 31, 2008). The total amount
of short-term debt maturing over the next 12 months was EUR 257 million
at the end of September. EUR 48 million of the short-term debt consists
of commercial papers issued in the Finnish markets, EUR 155 million are
current portions of long-term debt and the remainder is local working
capital financing of subsidiaries, mainly in Brazil.
The amount of commercial paper financing in use during January-September
fluctuated between EUR 48-160 million. During January-September, we
obtained EUR 365 million in new long-term debt with maturity of 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 debt maturity structure. The amount of this new
long term debt exceeds the repayments of our earlier loans until halfway
through 2011. At the end of September, our total cash assets amounted to
EUR 774 million. Out of this EUR 162 million has been invested in
instruments with initial maturity exceeding three months and the
remaining EUR 612 million is being accounted for as cash and cash
equivalents. The syndicated EUR 500 million revolving loan facility is
available until late 2011, and it is currently undrawn. Metso's liquidity
position is good.
At the end of September, our gearing was 51.1 percent (72.2%) and the
equity-to-assets ratio was 33.2 percent (31.5%). Due to strong operating
cash flow and lower capital expenditure, our net gearing has improved
during this year. In April, following the Annual General Meeting, we paid
EUR 99 million in dividends for 2008.
Capital expenditure
Our gross capital expenditure for January-September decreased by 61
percent on the comparison period to EUR 79 million (EUR 201 million in
Q1-Q3/08). The proportion of maintenance investments was 52 percent, i.e.
EUR 41 million.
We expect our capital expenditure excluding business acquisitions to
remain below EUR 130 million this year. We are significantly restricting
the amount of new investments and, when feasible, also extending the
implementation schedules of ongoing investment projects.
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 Jyvaeskylae. In Zibo we
are establishing our third service center in China for the pulp and paper
industry. 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-September totaled
EUR 84 million, representing 2.3 percent of Metso's net sales (EUR 96
million and 2.1% in Q1-Q3/08).
Acquisitions, divestments and joint ventures
In August, we concluded an agreement to purchase the Pacific/Hoe
Saw&Knife Company's coater and doctor blade business in the United States
for Paper and Fiber Technology. The annual net sales of the purchased
business are below USD 10 million. The transaction has not yet been
finalized.
In May, we sold the entire stock of Metso Paper Turku Works Oy in Finland
to Stairon Oy. Metso Paper Turku Works Oy manufactured air systems for
the pulp and paper industry. The sale had no significant impact on our
financial performance. The air system technology and the related business
remained in Metso's ownership. Metso Paper Turku Works Oy employed 91
people. In conjunction with the sale, Metso and Stairon 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, 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
Waertsilae's biopower business, started its operations on January 1,
2009. We own 60 percent and Waertsilae owns 40 percent of the joint
venture. An order backlog of about EUR 116 million was transferred with
Waertsilae Biopower Oy to the joint venture. In 2008, the total 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 the lower demand
already in early 2008 and intensified our efforts when the market
situation started to weaken in September 2008. We have continued these
measures throughout this year. 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 local labor legislation and
union contracts, such as a shortened work week. Through the
implementation of temporary lay-offs, we estimate that we will achieve
some EUR 25-30 million in savings in personnel costs during this year. In
addition to the above-mentioned temporary measures, we have also taken
actions to adjust our capacity on a permanent basis to a lower demand
environment. Furthermore, we have introduced new more efficient ways to
operate which have enabled us to close down smaller units and consolidate
our operations to larger entities. As a result, we have cut the number of
personnel since the end of June last year to the end of September this
year by 2,902 employees. We have also taken decisions or we have
discussions underway to further reduce our personnel by another 1,750
employees by early next year. Together these are about 4,650, out of
which some 3,000 will be in Finland and Sweden.
When fully implemented these permanent personnel reductions are estimated
to decrease our annual wage, salary and related social costs by over EUR
200 million. Out of these we estimate that EUR 100 million will
materialize already this year. In January-September we recorded about EUR
44 million in non-recurring capacity adjustment expenses resulting from
personnel reductions and the closures of units, and we estimate that
during the last quarter we will further record some EUR 30-35 million in
non-recurring expenses of this nature. About half of this is related to
personnel negotiations initiated in our Fiber business line in October.
The table below details the personnel reductions related to the capacity
adjustment measures
Mining and Energy and Paper and Metso
Construction Environmental Fiber
Technology Technology Technology
Personnel as of June 30, 10,503 6,311 10,089 28,069
2008
Acquisitions, July 2008 590 127 1,068 1,785
- September 2009
Divestitures, July - - -289 -289
2008--September 2009
Comparable personnel 11,093 6,438 10,868 29,565
amount
Personnel as of 10,014 6,119 9,475 26,663
September 30, 2009
Actual reduction July
2008 -
September 2009 1,079 319 1,393 2,902
Estimated additional
reductions decided 600 350 800 1,750
and underway
Total personnel 1,679 669 2,193 4,652
reductions decided
Temporary lay-offs in 600
man years
Personnel
At the end of September, we had 26,663 employees, which
was 2,659 less than at the end of 2008 (29,322 people at December 31,
2008). 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-September, we had an average of 27,976 employees.
Personnel by area
September % of September % of total Change December
30, 2009 total 30, 2008 personnel % 31, 2008
personnel
Finland 8,321 31 9,118 32 -9 9,252
Other Nordic 2,985 11 3,364 12 -11 3,332
countries
Other Europe 3,516 13 3,463 12 2 3,842
North 3,502 13 4,041 14 -13 3,964
America
South and 2,720 10 2,917 10 -7 2,991
Central
America
Asia-Pacific 4,218 16 4,386 15 -4 4,469
Rest of the 1,401 6 1,473 5 -5 1,472
world
Total 26,663 100 28,762 100 -7 29,322
REPORTING SEGMENTS
Mining and Construction Technology
EUR million Q3/09 Q3/08 Change Q1-Q3/ Q1-Q3/ Change 2008
% 09 08 %
Net sales 492 670 -27 1,551 1,869 -17 2,586
Net sales of services 247 274 -10 739 782 -5 1,078
business
% of net sales 50 41 48 42 42
Earnings before
interest, tax and 54.7 98.6 -45 157.2 269.3 -42 361.2
amortization (EBITA)
% of net sales 11.1 14.7 10.1 14.4 14.0
Operating profit 53.7 97.9 -45 154.6 267.1 -42 358.4
% of net sales 10.9 14.6 10.0 14.3 13.9
Orders received 420 747 -44 1,203 2,370 -49 2,709
Order backlog at end 1,103 1,964 -44 1,492
of period
Personnel at end of 10,014 10,829 -8 11,259
Period
Net sales of Mining and Construction Technology decreased by 17
percent on the comparison period, and were EUR 1,551 million. The Mining
business line's net sales declined by about 9 percent, while the net
sales of the Construction business line were down by about 29 percent.
Net sales of the services business declined by 5 percent on the
comparison period and accounted for 48 percent of the segment's net sales
(42% in Q1-Q3/08).
Mining and Construction Technology's operating profit for
January-September was EUR 154.6 million, which was 10.0 percent of net
sales (EUR 267.1 million and 14.3%). Operating profit was depressed by
about EUR 16 million of non-recurring expenses relating to capacity
adjustment measures in several units. The operating profit includes about
EUR 14 million capital gains relating to the sale of shares in Talvivaara
Mining Company Plc. The profitability of the Mining business line
weakened, but remained good. The profitability of the Construction
business line, on the other hand, weakened clearly from the comparison
period due to the low delivery volumes and capacity utilization rates in
manufacturing units and non-recurring expenses resulting from capacity
adjustment measures. The main reason for the third-quarter profitability
to exceed the profitability of the second quarter of the year were the
low level of sales, general and administration costs during the vacation
period and savings from the restructuring measures initiated during the
first half of the year.
The value of orders received in January-September decreased by 49 percent
on the comparison period and equaled EUR 1,203 million (EUR 2,370 million
in Q1-Q3/08). The value of new orders received declined in both the
Mining business line and Construction business line, as well as in all
geographical areas. The relative share of orders received from the
emerging markets remained on par with the previous year, amounting to
more than 50 percent (52%). During January-September, about EUR 66
million of previously received orders were canceled. In September, we won
an order for a fine crushing and screening system for Norsk Stein in
Norway.
The order backlog declined by 26 percent from the end of 2008 and totaled
EUR 1,103 million at the end of September (EUR 1,492 million at December
31, 2008). Around EUR 160 million of the mining equipment orders in the
order backlog have somewhat uncertain delivery schedules.
Energy and
Environmental Technology
EUR million Q3/09 Q3/08 Change Q1-Q3/ Q1-Q3/ Change 2008
% 09 08 %
Net sales 350 423 -17 1,104 1,272 -13 1,775
Net sales of services 117 143 -18 379 397 -5 549
business
% of net sales 34 35 35 32 32
Earnings before
interest, tax and 37.1 55.7 -33 103.5 137.8 -25 198.3
amortization (EBITA)
% of net sales 10.6 13.2 9.4 10.8 11.2
Operating profit 32.9 51.2 -36 90.3 120.0 -25 176.0
% of net sales 9.4 12.1 8.2 9.4 9.9
Orders received 250 568 -56 793 1,317 -40 1,658
Order backlog at end of 939 1,402 -33 1,204
period
Personnel at end of 6,119 6,317 -3 6,357
period
The net sales of Energy and Environmental Technology declined by 13
percent on the comparison period and were EUR 1,104 million. The net
sales decreased most strongly in the Recycling business line, by almost
30 percent. The net sales of the Power business line declined by 14
percent and Automation business line by 7 percent. The services business
declined by 5 percent from the comparison period and accounted for 35
percent of the segment's net sales (32% in Q1-Q3/08).
The Energy and Environmental Technology's EBITA weakened from the
previous year and were EUR 103.5 million, or 9.4 percent of net sales
(EUR 137.8 million and 10.8% in Q1-Q3/08). The EBITA margin improved
slightly from the previous year's level in the Power business line,
weakened but remained on a good level in the Automation business line and
declined to a weak level in the Recycling business line due to low
delivery volumes. The operating profit includes almost EUR 6 million
non-recurring expenses relating to the capacity adjustment measures.
The value of orders received fell by 40 percent from the comparison
period and totaled EUR 793 million. Orders received declined across all
of the business lines, most significantly in Recycling. Approximately EUR
84 million of orders previously received by the segment were canceled.
The biggest single cancelled order was Zhanjiang Chenming recovery
boiler, worth about EUR 60 million. Largest orders came particularly from
the energy customer industry, for example a power boiler for Industrias
Celulosa Aragonesa's (SAICA) new waste-to-energy power plant in Spain, a
power boiler and automation system for PGE Zespol Elektrowni Dolna Odra
S.A.'s combined heat and power plant in Poland and automation systems for
two energy-from-waste plants in the United Kingdom. In addition, we got
an extensive automation package order for Shandong Huatai Paper's new
paper machine line in China.
The order backlog at the end of September, EUR 939 million, was 22
percent lower than at the end of 2008. Slightly below EUR 90 million of
the order backlog's total value is subject to uncertainties about
delivery schedules. These orders include, among others, the deliveries of
power boiler and automation technology for the pulp mill project of
Fibria (the new company resulting from the merger of Votorantim and
Aracruz) in Brazil.
Paper and Fiber Technology
EUR million Q3/09 Q3/08 Change Q1-Q3/ Q1-Q3/ Change 2008
% 09 08 %
Net sales 356 441 -19 1,002 1,417 -29 2,044
Net sales of services 135 169 -20 410 514 -20 716
business
% of net sales 38 38 41 36 35
Earnings before
interest, tax and 32.4 36.9 -12 19.8 94.9 -79 146.1
amortization (EBITA)
% of net sales 9.1 8.4 2.0 6.7 7.1
Operating profit 27.6 34.5 -20 7.8 83.2 -91 130.1
% of net sales 7.8 7.8 0.8 5.9 6.4
Orders received 369 940 -61 983 1,814 -46 2,021
Order backlog at end 1,330 1,931 -31 1,434
of period
Personnel at end of 9,475 10,661 -11 10,544
Period
Net sales of Paper and Fiber Technology decreased by 29 percent in
January-September, and were EUR 1,002 million. Net sales of the services
business declined by 20 percent due to the overall slowdown of the
markets and low capacity utilization rates among customer mills. Services
share of total net sales rose to 41 percent due to low new equipment
sales (36% in Q1-Q3/08).
Paper and Fiber Technology's EBITA was EUR 19.8 million in
January-September i.e. 2.0 percent of net sales (EUR 94.9 million and
6.7% in Q1-Q3/08). The financial result includes about EUR 22 million
non-recurring expenses resulting from capacity adjustment measures. The
cancellation of the Zhanjiang Chenming pulp mill order resulted in EUR 9
million non-recurring expenses mainly deriving from the dissolving of the
hedging arrangements we had entered into. EBITA before the
above-mentioned non-recurring expenses resulting from capacity adjustment
measures was EUR 41.3 million. In addition, the financial result is
burdened by about EUR 4 million credit loss reserve related to the
initiated bankruptcy proceedings of two of our North American customers.
The profitability for January-September was also weakened by the low
utilization rate of our manufacturing and engineering units, high level
of capacity adjustment expenses and low net sales. The reason why the
third-quarter financial performance clearly exceeded the performance of
the two first quarters of the year were the low level of sales, general
and administration costs of the vacation period, savings from the
restructuring measures initiated during the first half of the year and
improved profitability of some large delivery projects in Paper business
line.
Demand for pulp industry machinery and equipment continued to be weak.
The value of orders received decreased by 46 percent on the comparison
period, and was EUR 983 million. The comparison period included two large
pulp mill orders. Among the largest orders received during the year were
a coated fine paper line order for Shandong Huatai Paper, a fine paper
line order for Zhanjiang Chenming and an uncoated fine paper machine
order for Sun Paper Group, all to China. The order backlog at the end of
September was EUR 1,330 million and about EUR 350 million of the projects
in the order backlog are subject to uncertainties relating to delivery
schedules. These projects include, for example, the pulp mill project for
Fibria (the new company resulting from the merger of Votorantim and
Aracruz) in Brazil.
Valmet Automotive
Valmet Automotive's net sales in January-September totaled EUR 42 million
(EUR 52 million in Q1-Q3/08). Operating loss was EUR 8.4 million (EUR 1.0
million in Q1-Q3/08). In January-September, Valmet Automotive produced an
average of 66 vehicles (95 vehicles in Q1-Q3/08) per day. At the end of
September, Valmet Automotive employed 636 people (783 people at December
31, 2008).
In August, Valmet Automotive signed a Letter of Intent with the Norwegian
company Think Global AS for manufacturing and engineering the Think City
electric car. Planned production volumes amount to thousands of cars
annually. The series production will start at the end of 2009. In
January, Valmet Automotive signed an agreement with the Danish company
Garia AS for the engineering and manufacturing of an electric golf car.
The agreement spans several years and involves the production of a few
thousand Garia golf cars annually. The series production will start in
the end of 2009.
At the end of 2008, Valmet Automotive and the U.S. company Fisker
Automotive Inc. signed a long-term cooperation agreement on the
engineering and manufacturing of Fisker Karma plug-in hybrid cars in
Finland. The first cars will be delivered to Fisker Automotive towards
the end of this year. The series production will start in 2010. The
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
Metso to enter solid waste recycling equipment business
In October, Metso completed the acquisition of Danish M&J Industries A/S,
a manufacturing company of mobile and stationary products for solid-waste
crushing. The acquired company was integrated into Metso's Recycling
business line. The net debt free value of the transaction is about EUR 16
million. M&J Industries has about 100 employees, and its forecasted net
sales in 2009 are about EUR 26 million.
Short-term risks of business operations
We estimate that our business environment for the rest of 2009 and first
half of 2010 will continue to be demanding.
The global economic recession 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 slightly over 15 percent of orders in the
order backlog at the moment are subject to uncertainties relating to
delivery schedules. We apply the percentage of completion method to
long-term delivery agreements, meaning that we recognize income on
long-term delivery agreements according to the progress of the delivery.
The customer advance payment is typically 10-30 percent of the project
value, in addition to which the customer makes progress payments based on
the milestones during the project execution, which significantly
decreases risk and our financing requirements related to projects. We
continually assess 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 changed operating
environment. We are adjusting our capacity and cost structure to
correspond with the lower demand, in order to maintain our
competitiveness. As a result of the global economic recession, the
markets for our products are contracting, which may lead 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 debt financing and increase
the costs relating to it. We estimate that our financial assets totaling
EUR 774 million and available credit facilities are sufficient to secure
short-term liquidity. Committed 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 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 situation remains demanding. We do not have any
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 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.
This year, we have sold construction equipment from the inventory with a
lower contribution margin than during the past few years.
Of the financial risks that affect our financial results, currency
exchange rate risks are among the most substantial. Exchange rate changes
can affect our business, although the geo-graphical scope of our
operations decreases the significance of any individual currency. The
uncertainty in the financial markets is likely to increase exchange rate
fluctuations. Our policy is to hedge currency exposures from firm
commitments.
Short-term outlook
Although there are signs of gradual economic recovery, we estimate that
our business environment will continue to be demanding during the rest of
the year and first half of 2010.
Our customers are still being cautious in their investment decisions,
which particularly affects our equipment sales and project business. We
estimate that our customers' capacity utilization rates are slowly
improving assuming that the overall positive momentum in the global
economy will continue. We estimate that this will have positive, gradual
impact first in our services business.
Mining companies have made substantial cuts in their investment plans
over the year compared with recent years and are still ready to curtail
their production if needed. However, some mining companies have upgraded
their investment plans for 2010, but it remains to be seen when this will
start to have an impact on new equipment market. Due to our strong
product and services offering, as well as our large installed equipment
base, which has grown significantly over the last few years, the demand
for our mining replacement and services business is expected to continue
satisfactory. 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, but which, for the
present, have had little effect. 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. 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 projects. We estimate that the demand for our
automation and flow control products will be satisfactory. The demand for
metals recycling equipment is expected to be weak, owing to the low price
of scrap metal and reduction in steel production. Demand for the services
business in Energy and Environmental Technology is expected to be
satisfactory.
We estimate that the demand for fiber lines will remain weak and that for
paper and board lines will be satisfactory. Several paper and board
machine projects have materialized in China during the past months,
partly thanks to 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 continue to 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. During
the first nine months we have generated net sales of EUR 3.7 billion and
our order backlog stands at EUR 3.3 billion, of which about EUR 1.2
billion consists of deliveries for 2009. We expect our profitability
level to be satisfactory in 2009. We also expect our free cash flow to
improve considerably on 2008. Although we estimate that our 2010 net
sales will be lower than this year, we expect our profitability to be
satisfactory.
The net sales and profitability estimates are based on our current market
outlook and business scope. Helsinki, October 29, 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 7-9/2009 7-9/2008 1-9/2009 1-9/2008 1-12/2008
Net sales 1,196 1,528 3,663 4,561 6,400
Cost of goods sold -885 -1,114 -2,752 -3,362 -4,733
Gross profit 311 414 911 1,199 1,667
Selling, general and
administrative expenses -210 -246 -688 -761 -1,043
Other operating income
and expenses, net 13 4 15 8 11
Share in profits of
associated companies 0 0 1 1 2
Operating profit 114 172 239 447 637
% of net sales 9.5% 11.3% 6.5% 9.8% 10.0%
Financial income and
expenses, net -23 -35 -59 -54 -89
Profit before taxes 91 137 180 393 548
Income taxes -28 -39 -54 -115 -158
Profit 63 98 126 278 390
Attributable to:
Shareholders of the
company 62 97 125 277 389
Minority interests 1 1 1 1 1
Profit 63 98 126 278 390
Earnings per share, EUR 0.44 0.69 0.88 1.96 2.75
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
EUR million 7-9/2009 7-9/2008 1-9/2009 1-9/2008 1-12/2008
Profit 63 98 126 278 390
Cash flow hedges, net
of tax 7 -18 17 -9 -33
Available-for-sale
equity investments, net
of tax -5 -10 5 -10 -19
Currency translation on
subsidiary net
investments 13 38 61 -12 -49
Net investment hedge
gains (losses), net of
tax -2 -11 0 -3 -11
Defined benefit plan
actuarial gains
(losses), net of tax - - - - -22
Other comprehensive
income (expense) 13 -1 83 -34 -134
Total comprehensive
income (expense) 76 97 209 244 256
Attributable to:
Shareholders of the
company 75 96 208 243 255
Minority interests 1 1 1 1 1
Total comprehensive
income (expense) 76 97 209 244 256
CONSOLIDATED BALANCE SHEET
ASSETS
Sep 30, Dec 31,
EUR million Sep 30, 2009 2008 2008
Non-current assets
Intangible assets
Goodwill 787 780 778
Other intangible assets 249 262 254
1,036 1,042 1,032
Property, plant and equipment
Land and water areas 58 56 58
Buildings and structures 233 232 239
Machinery and equipment 371 357 366
Assets under construction 53 79 63
715 724 726
Financial and other assets
Investments in associated companies 15 13 14
Available-for-sale equity investments 25 32 18
Loan and other interest bearing
receivables 9 16 8
Available-for-sale financial investments 44 5 5
Financial instruments held for trading 39 - -
Derivative financial instruments 0 3 0
Deferred tax asset 181 121 174
Other non-current assets 34 15 26
347 205 245
Total non-current assets 2,098 1,971 2,003
Current assets
Inventories 1,316 1,745 1,606
Receivables
Trade and other receivables 976 1,177 1,146
Cost and earnings of projects under
construction in excess of advance
billings 296 365 362
Loan and other interest bearing
receivables 8 2 9
Available-for-sale financial assets 79 - -
Derivative financial instruments 34 24 48
Income tax receivables 40 21 23
1,433 1,589 1,588
Cash and cash equivalents 612 256 314
Total current assets 3,361 3,590 3,508
TOTAL ASSETS 5,459 5,561 5,511
SHAREHOLDERS' EQUITY AND LIABILITIES
EUR million Sep 30, 2009 Sep 30, 2008 Dec 31, 2008
Equity
Share capital 241 241 241
Share premium reserve - - -
Cumulative translation
adjustments -75 -91 -136
Fair value and other reserves 511 520 490
Retained earnings 872 761 849
Equity attributable to
shareholders 1,549 1,431 1,444
Minority interests 10 9 9
Total equity 1,559 1,440 1,453
Liabilities
Non-current liabilities
Long-term debt 1,331 894 1,089
Post employment benefit
obligations 192 172 191
Provisions 46 35 36
Derivative financial
instruments 8 0 8
Deferred tax liability 47 33 45
Other long-term liabilities 2 4 4
Total non-current liabilities 1,626 1,138 1,373
Current liabilities
Current portion of long-term
debt 155 89 101
Short-term debt 102 336 245
Trade and other payables 958 1,247 1,189
Provisions 237 217 218
Advances received 412 631 479
Billings in excess of cost and
earnings of projects
under construction 355 366 323
Derivative financial
instruments 27 50 82
Income tax liabilities 28 47 48
Total current liabilities 2,274 2,983 2,685
Total liabilities 3,900 4,121 4,058
TOTAL SHAREHOLDERS' EQUITY AND
LIABILITIES 5,459 5,561 5,511
NET INTEREST BEARING
LIABILITIES
EUR million Sep 30, 2009 Sep 30, 2008 Dec 31, 2008
Long-term interest bearing
debt 1,331 894 1,089
Short-term interest bearing
debt 257 425 346
Cash and cash equivalents -612 -256 -314
Other interest bearing assets -179 -23 -22
Total 797 1,040 1,099
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
EUR million 7-9/2009 7-9/2008 1-9/2009 1-9/2008 1-12/2008
Cash flows from
operating activities:
Profit 63 98 126 278 390
Adjustments to reconcile profit
to net cash provided by
operating activities
Depreciation and
amortization 35 31 105 102 138
Interests and dividend
income 16 18 46 42 57
Income taxes 28 39 54 115 158
Other -6 14 4 18 34
Change in net working
capital 159 -43 294 -297 -437
Cash flows from
operations 295 157 629 258 340
Interest paid and
dividends received -10 -14 -35 -24 -49
Income taxes paid -26 -31 -107 -105 -154
Net cash provided by
(used in) operating
activities 259 112 487 129 137
Cash flows from
investing activities:
Capital expenditures
on fixed assets -23 -88 -78 -200 -255
Proceeds from sale of
fixed assets 0 5 3 8 10
Business acquisitions,
net of cash acquired - 8 -3 -31 -44
Proceeds from sale of
businesses, net of
cash sold 0 9 2 12 12
(Investments in)
proceeds from sale of
financial assets -140 -1 -143 6 7
Other - - 1 -7 -7
Net cash provided by
(used in) investing
activities -163 -67 -218 -212 -277
Cash flows from
financing activities:
Redemption of own
shares - - -2 - -
Dividends paid - - -99 -425 -425
Net funding -94 -148 120 489 621
Other 2 - -4 15 15
Net cash provided by
(used in) financing
activities -92 -148 15 79 211
Net increase
(decrease) in cash and
cash equivalents 4 -103 284 -4 71
Effect from changes in
exchange rates 3 -2 14 -7 -24
Cash and cash
equivalents at
beginning of period 605 361 314 267 267
Cash and cash
equivalents at end of
period 612 256 612 256 314
Free cash flow
EUR million 7-9/2009 7-9/2008 1-9/2009 1-9/2008 1-12/2008
Net cash provided by
operating activities 259 112 487 129 137
Capital expenditures
on maintenance
investments -10 -26 -41 -86 -118
Proceeds from sale of
fixed assets - 5 3 8 10
Free cash flow 249 91 449 51 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) - - -15 -19 - -34 - -34
Profit - - - - 277 277 1 278
Total comprehensive
income (expense) - - -15 -19 277 243 1 244
Dividends - - - - -425 -425 - -425
Redemption of own
shares - - - - - - - -
Share-based
payments, net of tax - - - 4 - 4 - 4
Decrease and
transfer of
share premium and
legal
reserve - -77 - 77 - - - -
Other - - - 2 -1 1 1 2
Balance at Sep 30,
2008 241 - -91 520 761 1,431 9 1,440
Balance at Jan 1,
2009 241 - -136 490 849 1,444 9 1,453
Other comprehensive
income (expense) - - 61 22 - 83 - 83
Profit - - - - 125 125 1 126
Total comprehensive
income (expense) - - 61 22 125 208 1 209
Dividends - - - - -99 -99 - -99
Redemption of own
shares - - - -3 - -3 - -3
Share-based
payments, net of tax - - - 1 - 1 - 1
Other - - - 1 -3 -2 - -2
Balance at Sep 30,
2009 241 - -75 511 872 1,549 10 1,559
ACQUISITIONS
Acquisitions in 2009
In January Metso and Waertsilae finalized the combination of Metso's Heat
& Power business with Waertsilae's Biopower business into a new joint
venture MW Power Oy. Metso owns 60% and Waertsilae 40% of the new
company. In this non-cash transaction Waertsilae 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 79 million and net
profit of EUR 4 million for the period from their acquisition to
September 30, 2009.
Summary information on acquisitions made in January-September 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 Sep 30, 2009 Sep 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 7 9 9
Repurchase and other
commitments 6 7 6
Lease commitments 156 144 152
NOTIONAL AMOUNTS OF DERIVATIVE FINANCIAL
INSTRUMENTS
EUR million Sep 30, 2009 Sep 30, 2008 Dec 31, 2008
Forward exchange rate
contracts 1,196 1,594 1,460
Interest rate swaps 123 143 168
Option agreements
Bought - 24 12
Sold - 24 12
The notional amount of electricity forwards was 603 GWh as of Sep 30,
2009 and 542 GWh as of Sep 30, 2008.
The notional amount of nickel forwards to hedge stainless steel
prices was 282 tons as of Sep 30, 2009 and 324 tons as of Sep 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 1-9/2009 1-9/2008 1-12/2008
Earnings per share, EUR 0.88 1.96 2.75
Equity/share at end of period, EUR 10.96 10.10 10.19
Return on equity (ROE), % (annualized) 11.4 24.5 26.0
Return on capital employed (ROCE) before
tax, % (annualized) 11.1 23.3 23.2
Return on capital employed (ROCE) after
tax, % (annualized) 8.6 17.3 17.3
Equity to assets ratio at end of period,
% 33.2 31.5 30.9
Gearing at end of period, % 51.1 72.2 75.7
Free cash flow 449 51 29
Free cash flow/share, EUR 3.17 0.36 0.20
Cash conversion, % 359 18 7
Gross capital expenditure (excl. business
acquisitions) 78 201 255
Business acquisitions, net of cash
acquired 3 31 44
Depreciation and amortization 105 102 138
Number of outstanding shares at end of
period (thousands) 141,349 141,625 141,624
Average number of shares (thousands) 141,396 141,585 141,595
EXCHANGE RATES USED
Sep 30, Sep 30, Dec 31,
1-9/2009 1-9/2008 1-12/2008 2009 2008 2008
USD (US dollar) 1.3861 1.5257 1.4726 1.4643 1.4303 1.3917
(Swedish
SEK krona) 10.6371 9.4575 9.6833 10.2320 9.7943 10.8700
(Pound
GBP sterling) 0.8955 0.7846 0.8023 0.9093 0.7903 0.9525
(Canadian
CAD dollar) 1.5978 1.5491 1.5656 1.5709 1.4961 1.6998
(Brazilian
BRL real) 2.8419 2.5819 2.6711 2.6050 2.7525 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
7-9/ 7-9/ 1-9/ 1-9/ 10/2008- 1-12/
EUR million 2009 2008 2009 2008 9/2009 2008
Mining and Construction
Technology 492 670 1,551 1,869 2,268 2,586
Energy and Environmental
Technology 350 423 1,104 1,272 1,607 1,775
Paper and Fiber Technology 356 441 1,002 1,417 1,629 2,044
Valmet Automotive 7 10 42 52 55 65
Group Head Office and other - - - - - -
Group Head Office and others
total 7 10 42 52 55 65
Intra Metso net sales -9 -16 -36 -49 -57 -70
Metso total 1,196 1,528 3,663 4,561 5,502 6,400
OTHER OPERATING INCOME (+) AND EXPENSES (-), NET
7-9/ 7-9/ 1-9/ 1-9/ 10/2008- 1-12/
EUR million 2009 2008 2009 2008 9/2009 2008
Mining and Construction Technology 5.3 3.0 8.5 4.5 7.9 3.9
Energy and Environmental
Technology 0.1 -0.5 1.3 -0.6 0.7 -1.2
Paper and Fiber Technology -0.9 1.4 -6.2 3.3 -6.8 2.7
Valmet Automotive -0.1 0.0 0.0 0.0 0.0 0.0
Group Head Office and other 8.4 0.4 10.9 0.4 15.7 5.2
Group Head Office and others total 8.3 0.4 10.9 0.4 15.7 5.2
Metso total 12.8 4.3 14.5 7.6 17.5 10.6
SHARE IN PROFITS OF ASSOCIATED
COMPANIES
7-9/ 7-9/ 1-9/ 1-9/ 10/2008- 1-12/
EUR million 2009 2008 2009 2008 9/2009 2008
Mining and Construction
Technology 0.0 0.0 0.0 0.1 0.0 0.1
Energy and Environmental
Technology 0.4 0.4 1.0 0.9 1.3 1.2
Paper and Fiber Technology 0.1 0.0 0.6 0.7 1.1 1.2
Valmet Automotive - - - - - -
Group Head Office and other - - - - - -
Group Head Office and others
total - - - - - -
Metso total 0.5 0.4 1.6 1.7 2.4 2.5
OPERATING PROFIT (LOSS)
7-9/ 7-9/ 1-9/ 1-9/ 10/2008- 1-12/
EUR million 2009 2008 2009 2008 9/2009 2008
Mining and Construction
Technology 53.7 97.9 154.6 267.1 245.9 358.4
Energy and Environmental
Technology 32.9 51.2 90.3 120.0 146.3 176.0
Paper and Fiber Technology 27.6 34.5 7.8 83.2 54.7 130.1
Valmet Automotive -5.5 -2.9 -8.4 -1.0 -10.9 -3.5
Group Head Office and other 5.4 -8.4 -5.7 -22.2 -7.3 -23.8
Group Head Office and others
total -0.1 -11.3 -14.1 -23.2 -18.2 -27.3
Metso total 114.1 172.3 238.6 447.1 428.7 637.2
OPERATING PROFIT (LOSS), % OF
NET SALES
7-9/ 7-9/ 1-9/ 1-9/ 10/2008- 1-12/
% 2009 2008 2009 2008 9/2009 2008
Mining and Construction
Technology 10.9 14.6 10.0 14.3 10.8 13.9
Energy and Environmental
Technology 9.4 12.1 8.2 9.4 9.1 9.9
Paper and Fiber Technology 7.8 7.8 0.8 5.9 3.4 6.4
Valmet Automotive -78.6 -29.0 -20.0 -1.9 -19.8 -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 9.5 11.3 6.5 9.8 7.8 10.0
EBITA
7-9/ 7-9/ 1-9/ 1-9/ 10/2008- 1-12/
EUR million 2009 2008 2009 2008 9/2009 2008
Mining and Construction
Technology 54.7 98.6 157.2 269.3 249.1 361.2
Energy and Environmental
Technology 37.1 55.7 103.5 137.8 164.0 198.3
Paper and Fiber Technology 32.4 36.9 19.8 94.9 71.0 146.1
Valmet Automotive -5.5 -2.8 -8.4 -0.9 -11.0 -3.5
Group Head Office and other 5.9 -7.7 -4.0 -20.2 -5.0 -21.2
Group Head Office and others
total 0.4 -10.5 -12.4 -21.1 -16.0 -24.7
Metso total 124.6 180.7 268.1 480.9 468.1 680.9
EBITA, % OF NET SALES
7-9/ 7-9/ 1-9/ 1-9/ 10/2008- 1-12/
% 2009 2008 2009 2008 9/2009 2008
Mining and Construction
Technology 11.1 14.7 10.1 14.4 11.0 14.0
Energy and Environmental
Technology 10.6 13.2 9.4 10.8 10.2 11.2
Paper and Fiber Technology 9.1 8.4 2.0 6.7 4.4 7.1
Valmet Automotive -78.6 -28.0 -20.0 -1.7 -20.0 -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 10.4 11.8 7.3 10.5 8.5 10.6
ORDERS RECEIVED
7-9/ 7-9/ 1-9/ 1-9/ 10/2008- 1-12/
EUR million 2009 2008 2009 2008 9/2009 2008
Mining and Construction
Technology 420 747 1,203 2,370 1,542 2,709
Energy and Environmental
Technology 250 568 793 1,317 1,134 1,658
Paper and Fiber Technology 369 940 983 1,814 1,190 2,021
Valmet Automotive 7 10 42 52 55 65
Group Head Office and other - - - - - -
Group Head Office and others
total 7 10 42 52 55 65
Intra Metso orders received -15 -19 -28 -58 -39 -69
Metso total 1,031 2,246 2,993 5,495 3,882 6,384
QUARTERLY INFORMATION
NET SALES
7-9/ 10-12/ 1-3/ 4-6/ 7-9/
EUR million 2008 2008 2009 2009 2009
Mining and Construction Technology 670 717 528 531 492
Energy and Environmental Technology 423 503 397 357 350
Paper and Fiber Technology 441 627 287 359 356
Valmet Automotive 10 13 21 14 7
Group Head Office and other - - - - -
Group Head Office and others total 10 13 21 14 7
Intra Metso net sales -16 -21 -13 -14 -9
Metso total 1,528 1,839 1,220 1,247 1,196
OTHER OPERATING INCOME (+) AND
EXPENSES (-), NET
7-9/ 10-12/ 1-3/ 4-6/ 7-9/
EUR million 2008 2008 2009 2009 2009
Mining and Construction Technology 3.0 -0.6 2.1 1.1 5.3
Energy and Environmental Technology -0.5 -0.6 -0.4 1.6 0.1
Paper and Fiber Technology 1.4 -0.6 0.9 -6.2 -0.9
Valmet Automotive 0.0 0.0 0.0 0.1 -0.1
Group Head Office and other 0.4 4.8 0.1 2.4 8.4
Group Head Office and others total 0.4 4.8 0.1 2.5 8.3
Metso total 4.3 3.0 2.7 -1.0 12.8
OPERATING PROFIT (LOSS)
7-9/ 10-12/ 1-3/ 4-6/ 7-9/
EUR million 2008 2008 2009 2009 2009
Mining and Construction Technology 97.9 91.3 54.9 46.0 53.7
Energy and Environmental Technology 51.2 56.0 27.7 29.7 32.9
Paper and Fiber Technology 34.5 46.9 -18.2 -1.6 27.6
Valmet Automotive -2.9 -2.5 -0.3 -2.6 -5.5
Group Head Office and other -8.4 -1.6 -5.5 -5.6 5.4
Group Head Office and others total -11.3 -4.1 -5.8 -8.2 -0.1
Metso total 172.3 190.1 58.6 65.9 114.1
EBITA
7-9/ 10-12/ 1-3/ 4-6/ 7-9/
EUR million 2008 2008 2009 2009 2009
Mining and Construction Technology 98.6 91.9 55.6 46.9 54.7
Energy and Environmental Technology 55.7 60.5 32.3 34.1 37.1
Paper and Fiber Technology 36.9 51.2 -14.0 1.4 32.4
Valmet Automotive -2.8 -2.6 -0.3 -2.6 -5.5
Group Head Office and other -7.7 -1.0 -4.8 -5.1 5.9
Group Head Office and others total -10.5 -3.6 -5.1 -7.7 0.4
Metso total 180.7 200.0 68.8 74.7 124.6
CAPITAL EMPLOYED
Sep 30, Dec 31, Mar 31, June 30, Sep 30,
EUR million 2008 2008 2009 2009 2009
Mining and Construction
Technology 1,226 1,230 1,221 1,191 1,111
Energy and Environmental
Technology 640 647 686 659 626
Paper and Fiber Technology 480 532 468 475 427
Valmet Automotive 23 21 19 20 27
Group Head Office and
other 390 458 493 816 956
Group Head Office and others
total 413 479 512 836 983
Metso total 2,759 2,888 2,887 3,161 3,147
ORDERS RECEIVED
EUR million 7-9/2008 10-12/2008 1-3/2009 4-6/2009 7-9/2009
Mining and
Construction
Technology 747 339 385 398 420
Energy and
Environmental
Technology 568 341 265 278 250
Paper and Fiber
Technology 940 207 279 335 369
Valmet Automotive 10 13 21 14 7
Group Head Office
and other - - - - -
Group Head Office and
others total 10 13 21 14 7
Intra Metso orders
received -19 -11 -8 -5 -15
Metso total 2,246 889 942 1,020 1,031
ORDER BACKLOG
Sep 30, Dec 31, Mar 31, June 30, Sep 30,
EUR million 2008 2008 2009 2009 2009
Mining and Construction
Technology 1,964 1,492 1,347 1,196 1,103
Energy and Environmental
Technology 1,402 1,204 1,182 1,035 939
Paper and Fiber Technology 1,931 1,434 1,438 1,304 1,330
Valmet Automotive - - - - -
Group Head Office and
other - - - - -
Group Head Office and others
total - - - - -
Intra Metso order backlog -53 -42 -33 -23 -32
Metso total 5,244 4,088 3,934 3,512 3,340
Sep 30, Dec 31, Mar 31, June 30, Sep 30,
PERSONNEL 2008 2008 2009 2009 2009
Mining and Construction
Technology 10,829 11,259 10,826 10,344 10,014
Energy and Environmental
Technology 6,317 6,357 6,387 6,349 6,119
Paper and Fiber Technology 10,661 10,544 10,090 9,858 9,475
Valmet Automotive 579 783 618 636 636
Group Head Office and
other 376 379 391 421 419
Group Head Office and others
total 955 1,162 1,009 1,057 1,055
Metso total 28,762 29,322 28,312 27,608 26,663
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 Yrjoe 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, Yrjoe Neuvo and Jaakko Rauramo. Metso's personnel
groups in Finland have elected Jukka Leppaenen 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.
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 EUR 0.70 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 outlook
for 2010 continues to be weak. The importance of a 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 Metso's economic
situation allows for 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.
Shares, options and share capital
At the end of September, 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-September of
2009, excluding Metso shares held by the company, was 141,396,267.
During February 2009 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
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 2,718 million on September 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-September 2009 was 262,023,873 shares, equivalent to
a turnover of EUR 3,016 million. The share price on September 30, 2009
was EUR 19.23 and the average trading price for the period was EUR 11.51.
The highest quotation during the review period was EUR 20.00 and the
lowest EUR 7.03. Metso's ADSs (American Depositary Shares) are traded in
the United States on the OTC market. On September 30, 2009, the closing
price of an ADS was USD 28.10. 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 third quarter.
Credit ratings
In August, Moody's Investor's Service has placed Metso's Baa2 long-term
issuer rating under review for a possible downgrade. 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 third quarter.
Metso's Financial Reporting in 2010
Metso's Financial Statements Review for 2009 will be published on
February 8, 2010. The Annual Report will be published in the week
beginning on March 8, 2010 (week 10). The Interim Review for
January-March 2010 will be published on April 29, 2010, the Interim
Review for January-June 2010 on July 29, 2010 and the Interim Review for
January-September 2010 on October 28, 2010 respectively.
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
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
Metso Interim Review Q3/2009:
http://hugin.info/3017/R/1351138/326415.pdf
Copyright Copyright Hugin
AS 2009. All rights reserved.
Copyright 2009, Market Wire, All rights reserved.
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