e6vk
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
April 27, 2007
Commission file number 1-14400
Metso Corporation
(Translation of registrants name into English)
Fabianinkatu 9 A,
P.O. Box 1220
FI-00101
Helsinki, Finland
Indicate by check mark whether the registrant files or will file annual reports under cover of
Form 20-F or Form 40-F
Form 20-F þ Form 40-F o
Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes o No þ
If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g-3-2(b): 82-
TABLE OF CONTENTS
SIGNATURES
Date April 27, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf of the undersigned, thereunto duly authorized.
Name:
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Olli Vaartimo
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Aleksanteri Lebedeff |
Executive Vice President and CFO
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Senior Vice President, |
Metso Corporation
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General Counsel |
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Metso Corporation |
METSOS INTERIM REVIEW, JANUARY 1 MARCH 31, 2007
(Helsinki, Finland, April 27, 2007) Metso Corporation (NYSE: MX; OMXH: MEO1V)
PROFITABLE GROWTH CONTINUED
Highlights of the first quarter
- New orders worth EUR 1,664 million were received in
January-March, i.e. 16 percent more than in the corresponding period last year (EUR 1,437 million in Q1/06).
- The order backlog grew by 7 percent from the end of 2006 and was EUR 3,999 million at the end of
March (EUR 3,737 million on Dec. 31, 2006).
- Net sales increased by 27 percent and totaled EUR 1,366 million (EUR 1,078 million in Q1/06).
- Earnings before interest, tax and amortization (EBITA) were EUR 121.9 million, i.e. 8.9 percent
of net sales (EUR 99.9 million and 9.3% in Q1/06).
- Operating profit (EBIT) was EUR 108.4 million, i.e. 7.9 percent of net sales (EUR 95.4 million
and 8.8% in Q1/06).
- Earnings per share were EUR 0.50 (EUR 0.47 in Q1/06).
- Free cash flow was EUR 97 million (EUR 152 million in Q1/06).
- Return on capital employed (ROCE) was 20.7 percent (20.2% in Q1/06).
Metsos January March order intake was strong, and our order backlog has further strengthened
from the record-high year-end figures. This, together with the continuing favorable market outlook,
gives us confidence about the rest of the year and beyond, says Jorma Eloranta, President and CEO,
Metso Corporation.
Eloranta notes that Metsos financial performance was solid despite seasonal factors that are
typical for the first quarter. Our net sales grew significantly over the same period in 2006. Much
of the growth is due to our expanded business scope, i.e. the acquisition of the Pulping and Power
businesses, but even organically we delivered some 10 percent growth. Also our operating profit
improved on the first quarter of 2006.
Eloranta says that Metsos outlook for 2007 continues to be favorable. The financial performance
for the rest of the year is expected to be stronger than in the first quarter of 2007. Furthermore,
we repeat our estimate that our net sales will grow by more than 20 percent on 2006 and that the
operating profit will clearly improve.
Metso Corporations key figures
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EUR million |
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Q1/07 |
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Q1/06 |
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Change % |
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2006 |
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Net sales |
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1,366 |
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1,078 |
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27 |
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4,955 |
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Earnings before interest, tax
and amortization (EBITA) |
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121.9 |
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99.9 |
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22 |
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481.1 |
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% of net sales |
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8.9 |
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9.3 |
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9.7 |
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Operating profit |
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108.4 |
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95.4 |
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14 |
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457.2 |
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% of net sales |
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7.9 |
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8.8 |
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9.2 |
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Earnings per share, basic, EUR |
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0.50 |
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0.47 |
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6 |
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2.89 |
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Orders received |
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1,664 |
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1,437 |
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16 |
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5,705 |
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Order backlog at end of period |
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3,999 |
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2,692 |
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49 |
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3,737 |
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Free cash flow |
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97 |
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152 |
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(36 |
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327 |
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Return on capital employed
(ROCE), annualized, % |
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20.7 |
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20.2 |
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22.2 |
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Equity to assets ratio at end of
period, % |
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37.5 |
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38.9 |
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36.1 |
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Gearing at end of period, % |
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22.9 |
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10.5 |
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30.8 |
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Operating environment and demand for products
The market situation for Metso continued to be favorable during the first quarter.
The demand for new paper and board machines remained good in China, but there were only a few
active projects in other market areas. New fiber lines were under planning in South America and
Southeast Asia, but the project implementation schedules have been partly open. The increase in the
demand for new alternative energy sources kept the demand for new power plants at a good level. The
demand for new tissue machines was satisfactory. The demand for aftermarket services in the pulp
and paper industry was satisfactory during January-March.
The demand for mining and metal recycling equipment remained excellent. The demand for construction
industry equipment continued to be excellent in Continental and Eastern Europe, and was good in
other markets. Thanks to the high capacity utilization rates in customer industries, the demand for
aftermarket services remained at an excellent level.
The demand for automation systems for the pulp and paper industry and power generation was good.
The demand for flow control systems continued to be good in the pulp and paper industry and
excellent in the power, oil and gas industry.
Orders received and order backlog
In January-March, the value of orders received by Metso grew by 16 percent on the comparison period
and totaled EUR 1,664 million. Growth came from all business areas. Most of the increase in Metso
Papers orders was attributable to the acquisition of the Pulping and Power businesses at the end
of 2006. Metsos order backlog increased by 7 percent on the end of 2006 and stood at EUR 3,999
million at the end of March.
Metso Papers largest orders in the first quarter included a paper machine to Oji Paper in Japan
and a board machine to Shandong International Paper & Sun Coated Paperboard in China. Metso
Minerals largest orders included a grinding system for Bolidens Aitik mine in Sweden and grinding
equipment to Osisko Exploration in Canada. Metso Automation received the biggest single valve order
in its history from the Chiyoda-Technip Joint Venture (CTJV) to Qatar.
Orders received by business area
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Q1/07 |
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Q1/06 |
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% of |
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% of |
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EUR |
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orders |
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EUR |
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orders |
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million |
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received |
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million |
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received |
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Metso Paper |
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653 |
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39 |
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544 |
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38 |
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Metso Minerals |
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771 |
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46 |
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686 |
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47 |
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Metso Automation |
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228 |
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13 |
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191 |
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13 |
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Valmet Automotive |
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28 |
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2 |
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31 |
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2 |
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Intra-Metso orders
received and other |
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(16 |
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(15 |
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Total |
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1,664 |
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100 |
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1,437 |
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100 |
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Orders received by market area
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Q1/07 |
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Q1/06 |
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% of |
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% of |
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EUR |
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orders |
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EUR |
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orders |
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million |
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received |
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million |
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received |
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Europe |
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722 |
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43 |
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608 |
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42 |
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North America |
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297 |
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18 |
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308 |
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21 |
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South and Central America |
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118 |
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7 |
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182 |
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13 |
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Asia-Pacific |
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406 |
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25 |
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241 |
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17 |
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Rest of the world |
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121 |
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7 |
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98 |
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7 |
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Total |
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1,664 |
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100 |
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1,437 |
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100 |
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Net sales
Metsos net sales for the first quarter grew by 27 percent on the comparison period and totaled EUR
1,366 million. Excluding the Pulping and Power businesses acquired at the end of 2006, the net
sales growth was about 10 percent. All business areas increased their net sales. Excluding the
effect of exchange rate translation, the increase would have been 4 percentage points higher.
Aftermarket operations accounted for 33 percent (38% in Q1/06) of Metsos net sales. Decrease in
the share of aftermarket operations was mainly due to the acquired Pulping and Power businesses
where the share of aftermarket business is low. Measured in euros, the volume of the aftermarket
operations increased by 11 percent.
Net sales by business area
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Q1/07 |
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Q1/06 |
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% of |
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% of |
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EUR |
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net |
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EUR |
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net |
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million |
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sales |
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million |
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sales |
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Metso Paper |
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666 |
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48 |
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417 |
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39 |
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Metso Minerals |
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540 |
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39 |
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503 |
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46 |
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Metso Automation |
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146 |
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11 |
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134 |
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12 |
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Valmet Automotive |
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28 |
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2 |
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31 |
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3 |
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Intra-Metso net sales
and other |
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(14 |
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(7 |
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Total |
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1,366 |
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100 |
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1,078 |
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100 |
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Net sales by market area
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Q1/07 |
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Q1/06 |
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% of |
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% of |
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net |
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EUR |
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net |
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EUR million |
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sales |
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million |
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sales |
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Europe |
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544 |
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40 |
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456 |
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42 |
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North America |
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259 |
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19 |
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248 |
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23 |
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South and Central America |
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218 |
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16 |
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135 |
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13 |
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Asia-Pacific |
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285 |
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21 |
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185 |
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17 |
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Rest of the world |
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60 |
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4 |
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54 |
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5 |
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Total |
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1,366 |
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100 |
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1,078 |
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100 |
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Financial result
Metsos operating profit in the first quarter was EUR 108.4 million, or 7.9 percent of net sales
(EUR 95.4 million or 8.8% in Q1/06). Metso Papers operating
profit was affected by a EUR 9 million
amortization of intangible assets related to the acquisition of the Pulping and Power businesses
and by a EUR 3 million provision for a credit loss related to a customer project. Metso Papers and
Metso Automations operating profit was negatively affected by a steep increase in the price of
stainless steel, a key raw material for components.
Earnings before interest, tax and amortization (EBITA) were EUR 121.9 million or 8.9 percent of net
sales in the first quarter (EUR 99.9 million or 9.3% in Q1/06).
Metsos net financial expenses were EUR 8 million (EUR 7 million) in January-March.
Metsos profit before taxes was EUR 100 million (EUR 88 million). The Corporations tax rate is
estimated to be about 30 percent in 2007.
The profit attributable to shareholders was EUR 70 million, corresponding to earnings per share of
EUR 0.50 (EUR 0.47).
The return on capital employed (ROCE) was 20.7 percent (20.2%) and the return on equity (ROE) was
20.0 percent (22.1%).
Cash flow and financing
Metsos net cash generated by operating activities was EUR 123 million (EUR 169 million). Net
working capital remained at year-end level. Metsos free cash flow was EUR 97 million (EUR 152
million).
Net interest-bearing liabilities totaled EUR 353 million at the end of March. Gearing (i.e. the
ratio of net interest-bearing liabilities to shareholders equity) was 22.9 percent, while the
equity to asset ratio was 37.5 percent. After the first quarter, following the Annual General Meeting, Metso paid out EUR
212 million in dividends in April, which raised the gearing ratio by approximately 20 percentage
points and decreased the equity to assets ratio by approximately 3 percentage points.
Capital expenditure
Metsos gross capital expenditure was EUR 32 million excluding acquisitions (EUR 26 million). About
one third of the expenditure was related to capacity increasing investments.
Metso Paper continued the expansion of the Wuxi service center in China. Metso Minerals had an
ongoing capital expenditure project to build a crusher pilot plant and test laboratory at the
Tampere unit, Finland. In the first quarter, Metso Automation made a decision to increase the valve
production capacity at its Shanghai unit in China.
Metsos gross capital expenditure for 2007 excluding acquisitions is estimated to increase by some
20 percent on 2006.
Metsos research and development expenditure totaled EUR 29 million (EUR 25 million) during
January-March, i.e. 2.1 percent of Metsos net sales.
Acquisitions and divestments
On March 30, 2007, Metso Minerals acquired the North American metal recycling technology provider,
Bulk Equipment Systems and Technologies Inc. (B.E.S.T. Inc), located in Cleveland, Ohio. The
acquisition price, approximately EUR 9 million, was paid in April. The companys net sales in 2006
were EUR 8 million and it employs approximately 40 people.
On March 1, 2007, Metso Paper sold the majority of Metso Paper AG in Delémont, Switzerland. Metso
Paper remains as a minority shareholder in the company. Metso Paper AG is a supplier of roll
logistic systems, solutions and services. The company has about 70 employees and annual net sales
of approximately EUR 10 million.
Acquisition and integration of the Pulping and Power businesses
Metso closed the acquisition of Aker Kvaerners Pulping and Power businesses on December 29, 2006.
The estimated acquisition price is EUR 341 million, including EUR 6 million in expenses related to
the acquisition and EUR 52 million in net cash. The process to define the final balance sheet
values of the acquired businesses continues in accordance with the agreement.
Metso estimates that the annual cost savings achievable through synergies will amount to EUR 20-25
million after integration. About one third of these are expected to be realized during 2007. The
non-recurring expenses resulting from integration of the acquired businesses are estimated to be
less than EUR 10 million, of which EUR 1 million was recognized in the first quarter and the rest are expected to be recorded in the
remaining three quarters in 2007.
Integration of the acquired businesses into Metso Paper has proceeded according to plan. During the
first quarter, the customer interface organization was restructured and employee negotiations were
conducted regarding the pruning of overlapping activities in Sweden and Finland.
The amortization of intangible assets resulting from the transaction is estimated to be EUR 37
million in 2007, EUR 20 million in 2008 and after that EUR 13 million annually until the intangible
assets have been fully amortized. The rest of the transaction price exceeding the balance sheet
value will remain as goodwill, which is not amortized. In the first quarter, the amortization of
intangible assets amounted to EUR 9 million.
Personnel
Metso had 25,616 employees at the end of March, which was 62 less than at the end of 2006 (25,678
employees). In the first quarter, Metso had an average of 25,647 employees.
Personnel by area
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Mar 31, 2007 |
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Dec 31, 2006 |
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Change % |
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Finland |
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9,275 |
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9,281 |
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0 |
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Other Nordic countries |
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3,555 |
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3,580 |
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(1 |
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Other Europe |
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2,993 |
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3,067 |
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(2 |
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North America |
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3,708 |
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3,715 |
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0 |
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South and Central America |
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2,410 |
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2,439 |
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(1 |
) |
Asia-Pacific |
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2,341 |
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2,262 |
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4 |
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Rest of the world |
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1,334 |
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1,334 |
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Total personnel |
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25,616 |
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25,678 |
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0 |
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Subpoena from U.S. Department of Justice requiring Metso to produce documents
In November 2006, Metso Minerals Industries, Inc., which is Metso Minerals 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. Metso is cooperating fully with the Department of Justice.
Share ownership plan
Metso has a share ownership plan for 2006-2008. The maximum number of shares to be allocated to the
2006-2008 incentive plan is 360,000 Metso Corporation shares.
The share ownership plan for the year 2006 was directed to 60 Metso managers. Based on the 2006
earnings period, 99,961 shares corresponding to 0.07 percent of Metso shares were distributed at
the end of March 2007. Members of Metsos Executive Team received 25,815 shares.
Metsos Board of Directors decided in February to direct the 2007 share ownership plan to a total
of 84 Metso managers. The entire Metso Executive Team is included in the sphere of the 2007
incentive plan. The potential reward from the plan will be based on the achieved operating profit
of Metso Corporation and its business areas in 2007. The share ownership plan in 2007 will cover a
maximum of 125,500 Metso shares. The Metso Executive Teams allocation of this total is a maximum
of 26,500 shares. If the value of Metso share, determined as the average trading price during the
first two full weeks of March 2008, exceeds EUR 48, the number of grantable shares for the 2007
plan will be decreased by a corresponding ratio. Payment of the potential rewards will be decided
during the first quarter of 2008.
The maximum number of shares to be allocated for the 2008 earnings period as well as the share
value limit will be decided by Metsos Board of Directors in the beginning of 2008.
Shares, options and share capital
A total of 35,000 shares were subscribed with Metso Corporations 2003A stock options during a
period of February 8 March 15, 2007. The resulting increase in share capital of EUR 59,500.00 was
entered into the Finnish Trade Register on March 29, 2007. The shares were listed on the Helsinki
Stock Exchange together with the existing shares as of March 30, 2007. Dividend and other
shareholder rights of the new shares commenced from the registration date.
Following this increase, the Companys share capital at the end of March was EUR 240,982,843.80 and
the total number of shares was 141,754,614. At the end of March, the Parent Company held 60,841
Metso shares. Additionally, a partnership included in Metsos consolidated financial statements
held 200,039 Metso shares. Together these shares represent 0.18 percent of all the shares and
votes. During the first quarter of 2007, the average number of outstanding shares excluding the own
shares mentioned above was 141,364,382.
After cancellations and exercised options there remains a total of 100,000 year 2003A options, all
of them being held by Metsos subsidiary, Metso Capital Ltd.
Metsos market capitalization excluding the own shares was EUR 5,596 million on March 31, 2007.
BUSINESSES
Metso Paper
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|
|
EUR million |
|
Q1/07 |
|
|
Q1/06 |
|
|
Change % |
|
|
2006 |
|
Net sales |
|
|
666 |
|
|
|
417 |
|
|
|
60 |
|
|
|
2,092 |
|
Earnings before interest, tax
and amortization (EBITA) |
|
|
37.1 |
|
|
|
23.8 |
|
|
|
56 |
|
|
|
105.6 |
|
% of net sales |
|
|
5.6 |
|
|
|
5.7 |
|
|
|
|
|
|
|
5.0 |
|
Operating profit |
|
|
25.4 |
|
|
|
21.5 |
|
|
|
18 |
|
|
|
89.8 |
|
% of net sales |
|
|
3.8 |
|
|
|
5.2 |
|
|
|
|
|
|
|
4.3 |
|
Orders received |
|
|
653 |
|
|
|
544 |
|
|
|
20 |
|
|
|
2,276 |
|
Order backlog at end of period |
|
|
2,190 |
|
|
|
1,459 |
|
|
|
50 |
|
|
|
2,225 |
|
Personnel at end of period |
|
|
11,469 |
|
|
|
8,902 |
|
|
|
29 |
|
|
|
11,558 |
|
Aker Kvaerners Pulping and Power businesses were acquired as of December 29, 2006, and the
acquired balance sheet was consolidated to Metso on December 31, 2006. The acquired businesses had
no effect to Metsos income statement for 2006 and are therefore not included in the comparative
segment information except for order backlog and personnel as at December 31, 2006.
Metso Papers net sales increased in January-March by 60 percent and were EUR 666 million. About
two thirds of this growth was attributable to the acquisition of the Pulping and Power businesses
at the end of 2006. The comparable net sales growth originated mostly from the Paper and Board
business line. The aftermarket operations accounted for 26 percent of net sales (35% in Q1/06). The
decline in the share of aftermarket business was due to the change in Metso Papers structure.
Measured in euros, the volume of aftermarket business increased by 19 percent and the growth came
from the Pulping and Power businesses.
Metso Papers EBITA was EUR 37.1 million, or 5.6 percent of net sales and operating profit was EUR
25.4 million, or 3.8 percent of net sales. The first quarters operating profit includes a EUR 9
million amortization of intangible assets related to the acquisition of the Pulping and Power
businesses, and a EUR 3 million provision for a credit loss related to a customer project. The rise
in the price of stainless steel impacted component prices and thus Metso Papers profitability. The
Panelboard business recorded a small operating profit in the first quarter.
The value of orders received by Metso Paper increased by 20 percent on the comparison period and
were EUR 653 million. The growth was mostly due to the acquisition of the Pulping and Power
businesses. In the first quarter, the Paper and Board business line received orders from Asia for
four new machines. A long-term maintenance agreement was signed in the review period with Plattling
Papiers mill in Germany. This is Metso Papers first extensive service agreement for a paper mill,
which is still under construction. The end-of-March order backlog, EUR 2,190 million, was nearly
the same as at year-end 2006.
Metso Minerals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR million |
|
Q1/07 |
|
|
Q1/06 |
|
|
Change % |
|
|
2006 |
|
Net sales |
|
|
540 |
|
|
|
503 |
|
|
|
7 |
|
|
|
2,199 |
|
Earnings before interest, tax
and amortization (EBITA) |
|
|
68.7 |
|
|
|
61.5 |
|
|
|
12 |
|
|
|
302.1 |
|
% of net sales |
|
|
12.7 |
|
|
|
12.2 |
|
|
|
|
|
|
|
13.7 |
|
Operating profit |
|
|
67.8 |
|
|
|
60.2 |
|
|
|
13 |
|
|
|
297.7 |
|
% of net sales |
|
|
12.6 |
|
|
|
12.0 |
|
|
|
|
|
|
|
13.5 |
|
Orders received |
|
|
771 |
|
|
|
686 |
|
|
|
12 |
|
|
|
2,655 |
|
Order backlog at end of period |
|
|
1,497 |
|
|
|
1,043 |
|
|
|
44 |
|
|
|
1,277 |
|
Personnel at end of period |
|
|
9,545 |
|
|
|
8,914 |
|
|
|
7 |
|
|
|
9,433 |
|
Metso Minerals first-quarter net sales increased by 7 percent and were EUR 540 million. Deliveries
of the Mining business line were up on the comparison period, while those of the Construction
business line remained at the level of the comparison period. Deliveries of the Recycling business
line were down on the comparison period due to the timing of projects. The aftermarket operations
accounted for 44 percent of net sales (44% in Q1/06).
The operating profit of Metso Minerals was EUR 67.8 million, or 12.6 percent of net sales. The
Mining business line improved its operating profit from the comparison period mainly due to volume
growth. The operating profit of the Construction business line was at the level of the comparison
period.
The value of orders received by Metso Minerals was up by 12 percent on the comparison period and
totaled EUR 771 million. Growth came evenly from all business lines. The trend in order intake was
most favorable in Continental and Eastern Europe. In North America, orders received for mining
equipment increased significantly. The order backlog increased by 17 percent on the end of 2006 and
was EUR 1,497 million at the end of March.
Metso Automation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR million |
|
Q1/07 |
|
|
Q1/06 |
|
|
Change % |
|
|
2006 |
|
Net sales |
|
|
146 |
|
|
|
134 |
|
|
|
9 |
|
|
|
613 |
|
Earnings before interest, tax
and amortization (EBITA) |
|
|
15.9 |
|
|
|
15.7 |
|
|
|
1 |
|
|
|
88.3 |
|
% of net sales |
|
|
10.9 |
|
|
|
11.7 |
|
|
|
|
|
|
|
14.4 |
|
Operating profit |
|
|
15.5 |
|
|
|
15.3 |
|
|
|
1 |
|
|
|
86.7 |
|
% of net sales |
|
|
10.6 |
|
|
|
11.4 |
|
|
|
|
|
|
|
14.1 |
|
Orders received |
|
|
228 |
|
|
|
191 |
|
|
|
19 |
|
|
|
717 |
|
Order backlog at end of period |
|
|
356 |
|
|
|
234 |
|
|
|
52 |
|
|
|
276 |
|
Personnel at end of period |
|
|
3,379 |
|
|
|
3,170 |
|
|
|
7 |
|
|
|
3,352 |
|
Metso Automations net sales increased in January-March by 9 percent and were EUR 146 million.
Deliveries of the Flow Control business line, which manufactures field equipment, increased, while
those of the Process Automation Systems business line remained at the level of the comparison
period. The aftermarket operations accounted for 22 percent of net sales (24% in Q1/06). Measured
in euros, the volume of the aftermarket operations remained at the level of the comparison period.
Metso Automations operating profit amounted to EUR 15.5 million or 10.6 percent of net sales.
Operating profit was negatively affected by a steep increase in the price of raw materials used in
valve casting.
The value of orders received by Metso Automation increased by 19 percent on the comparison period
and rose to EUR 228 million. The growth originated mainly from field equipment orders from the
power, oil and gas industry. The order backlog increased by 29 percent on the end of 2006 and was EUR 356
million at the end of March.
Valmet Automotive
Valmet Automotives net sales in January-March were EUR 28 million. Operating profit was EUR 4.4
million, or 15.7 percent of net sales. In the first quarter, Valmet Automotive manufactured an
average of 127 cars per day, but in early April the manufacturing volumes dropped according to plan
to 102 cars per day. The decrease was due to general uncertainty in the automotive markets. Valmet
Automotives number of personnel was adjusted in the first quarter to correspond with the current
production level.
Events after the review period
Decisions of the Annual General Meeting
The Annual General Meeting of Metso Corporation approved on April 3, 2007 the accounts for 2006 as
presented by the Board of Directors and decided to discharge the members of the Board of Directors
and the President and CEO of Metso Corporation from liability for the financial year 2006. In
addition, the Annual General Meeting approved the proposals of the Board of Directors to amend the
Articles of Association and to authorize the Board of Directors to resolve of a repurchase of the
Corporations own shares and of a share issue.
The Annual General Meeting decided to establish a Nomination Committee of the Annual General
Meeting to prepare proposals for the following Annual General Meeting in respect of the composition
of the Board of Directors along with the director remuneration. The Nomination Committee consists
of representatives appointed by the four biggest shareholders along with the Chairman of the Board
of Directors as an expert member.
Matti Kavetvuo was re-elected the Chairman of the Board and Jaakko Rauramo was re-elected the Vice
Chairman of the Board. Eva Liljeblom, Professor at the Swedish School of Economics and Business
Administration, Helsinki, Finland, was elected as a new member of the Board. The Board members
re-elected were Svante Adde, Maija-Liisa Friman, Christer Gardell and Yrjö Neuvo. The term of
office of Board members lasts until the end of the following Annual General Meeting.
The Annual General Meeting decided that the annual remuneration for Board members would be EUR
80,000 for the Chairman, EUR 50,000 for the Vice Chairman and the Chairman of the Audit Committee
and EUR 40,000 for the members, and that the meeting fee including committee meetings would be EUR
500 per meeting.
The auditing company, Authorized Public Accountants PricewaterhouseCoopers was re-elected to act as
Auditor of the Corporation until the end of the next Annual General Meeting.
The Annual General Meeting decided that a dividend of EUR 1.50 per share would be paid for the
financial year which ended on December 31, 2006. The dividend was paid on April 17, 2007.
Board committees
The Board of Directors elected members among the Board for the Audit Committee and Compensation
Committee at its assembly meeting.
The Boards Audit Committee consists of Maija-Liisa Friman (Chairman), Svante Adde and Eva
Liljeblom. The Board of Directors assigned Svante Adde as the financial expert of the Audit
Committee.
The Boards Compensation Committee consists of Matti Kavetvuo (Chairman), Jaakko Rauramo, Christer
Gardell and Yrjö Neuvo.
Metso evaluates possible delisting from the New York Stock Exchange
In the beginning of April, Metso Corporations Board of Directors decided to evaluate the possible
deregistration and delisting of Metso Corporations shares from the New York Stock Exchange in view
of the revisions to the U.S. Securities Exchange Act of 1934 published by the U.S. Securities and
Exchange Commission on March 27, 2007, which will take effect in early June 2007. Metso
Corporations Board of Directors will decide on the matter later this year after having completed
the evaluation.
New service center in Guangzhou
In the beginning of the second quarter, Metso Paper made a decision to build a service center in
Guangzhou, China. The value of the investment is approximately EUR 10 million. The new service
center will start its operations in 2008.
Short-term risks of business operations
The significance of China as the primary market for new paper and board machines has increased even
further, and thus any substantial changes in demand on the Chinese market may have a material
adverse effect on Metso Papers profitability. Metso seeks to mitigate these risks by developing
its global aftermarket operations and increasing the flexibility of its delivery chain.
The delivery times for Metso products have been lengthened because of strong growth in order intake
and backlog. Therefore, there is a risk that material and other costs may rise significantly during
the delivery time and have a greater impact on Metsos profitability than currently anticipated. In
the current strong demand situation, the scarcity of certain components and subcontractor
resources, particularly at Metso Minerals and Metso Automation, may also lengthen delivery times.
Metso strives to manage and limit the potential adverse effects of these and other risks. However,
if the risks materialize, they could have a significant adverse effect on Metsos business,
financial position and results of operations or on the price of Metso share.
Short-term outlook
The favorable market outlook for Metsos products and services is expected to continue for the rest
of 2007.
Metso Papers market situation is estimated to continue much the same as in the years first
quarter. The demand for paper, board and tissue machines and for fiber lines is expected to be
satisfactory. The demand for power plants is estimated to be good. Also the demand for Metso
Papers aftermarket services is expected to remain satisfactory.
Metso Minerals favorable market outlook is expected to continue. The demand is anticipated to
remain at the first quarters excellent level in the mining and metals recycling industries, and at
a good level in the construction industry. The demand for aftermarket services is expected to
remain excellent.
Metso Automations market outlook in the pulp and paper customer segment is estimated to be good.
In the power, oil and gas industries, the demand is expected to be good in process automation
systems and excellent in flow control systems.
It is estimated that Metsos financial performance for the rest of the year will be stronger than
in the first quarter. Metsos net sales in 2007 are estimated to grow by more than 20 percent on
2006, thanks to the strong order backlog, continuing favorable market situation and the expanded
business scope. The operating profit in 2007 is estimated to clearly improve. It is estimated that
the operating profit margin in 2007 will be slightly below Metsos target, which is over 10
percent. This is primarily due to the high first-year amortization of intangible assets,
integration costs and only partially materializing synergy benefits related to the acquisition of
the Pulping and Power businesses.
The estimates concerning financial performance are based on Metsos current structure, order
backlog and market outlook.
Helsinki, April 27, 2007
Metso Corporations Board of Directors
The interim review is unaudited
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
1-12/ |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
2006 |
|
Net sales |
|
|
1,366 |
|
|
|
1,078 |
|
|
|
4,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
(1,026 |
) |
|
|
(778 |
) |
|
|
(3,659 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
340 |
|
|
|
300 |
|
|
|
1,296 |
|
Selling, general and administrative
expenses |
|
|
(238 |
) |
|
|
(206 |
) |
|
|
(846 |
) |
Other operating income and expenses,
net |
|
|
6 |
|
|
|
1 |
|
|
|
6 |
|
Share in profits of associated
companies |
|
|
0 |
|
|
|
0 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
|
108 |
|
|
|
95 |
|
|
|
457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of net sales |
|
|
7.9 |
% |
|
|
8.8 |
% |
|
|
9.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
1-12/ |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
2006 |
|
Financial income and expenses, net |
|
|
(8 |
) |
|
|
(7 |
) |
|
|
(36 |
) |
Profit on continuing operations
before tax |
|
|
100 |
|
|
|
88 |
|
|
|
421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes on continuing operations |
|
|
(30 |
) |
|
|
(21 |
) |
|
|
(11 |
) |
Profit on continuing operations |
|
|
70 |
|
|
|
67 |
|
|
|
410 |
|
Profit (loss) on discontinued
operations |
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) |
|
|
70 |
|
|
|
67 |
|
|
|
410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) attributable to
minority interests |
|
|
0 |
|
|
|
0 |
|
|
|
1 |
|
Profit (loss) attributable to
equity shareholders |
|
|
70 |
|
|
|
67 |
|
|
|
409 |
|
Profit (loss) |
|
|
70 |
|
|
|
67 |
|
|
|
410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing
operations, EUR |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
0.50 |
|
|
|
0.47 |
|
|
|
2.89 |
|
Diluted |
|
|
0.50 |
|
|
|
0.47 |
|
|
|
2.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from discontinued
operations, EUR |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing
and discontinued
operations, EUR |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
0.50 |
|
|
|
0.47 |
|
|
|
2.89 |
|
Diluted |
|
|
0.50 |
|
|
|
0.47 |
|
|
|
2.89 |
|
CONSOLIDATED BALANCE SHEETS
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31, |
|
|
Mar 31, |
|
|
Dec 31, |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
2006 |
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
772 |
|
|
|
496 |
|
|
|
768 |
|
Other intangible assets |
|
|
265 |
|
|
|
100 |
|
|
|
274 |
|
|
|
|
1,037 |
|
|
|
596 |
|
|
|
1,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
Land and water areas |
|
|
54 |
|
|
|
58 |
|
|
|
57 |
|
Buildings and structures |
|
|
217 |
|
|
|
213 |
|
|
|
221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31, |
|
|
Mar 31, |
|
|
Dec 31, |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
2006 |
|
Machinery and equipment |
|
|
312 |
|
|
|
280 |
|
|
|
318 |
|
Assets under construction |
|
|
29 |
|
|
|
19 |
|
|
|
19 |
|
|
|
|
612 |
|
|
|
570 |
|
|
|
615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial and other assets |
|
|
|
|
|
|
|
|
|
|
|
|
Investments in associated
companies |
|
|
19 |
|
|
|
19 |
|
|
|
19 |
|
Available-for-sale equity
investments |
|
|
15 |
|
|
|
13 |
|
|
|
15 |
|
Loan and other interest bearing
receivables |
|
|
6 |
|
|
|
5 |
|
|
|
6 |
|
Available-for-sale financial
assets |
|
|
5 |
|
|
|
34 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax asset |
|
|
218 |
|
|
|
156 |
|
|
|
228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current assets |
|
|
29 |
|
|
|
47 |
|
|
|
33 |
|
|
|
|
292 |
|
|
|
274 |
|
|
|
306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets |
|
|
1,941 |
|
|
|
1,440 |
|
|
|
1,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
Inventories |
|
|
1,276 |
|
|
|
963 |
|
|
|
1,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other receivables |
|
|
1,074 |
|
|
|
840 |
|
|
|
1,218 |
|
Cost and earnings of projects
under construction in excess
of advance billings |
|
|
302 |
|
|
|
206 |
|
|
|
284 |
|
Loan and other interest bearing
receivables |
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
Available-for-sale
financial assets |
|
|
10 |
|
|
|
100 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax receivables |
|
|
20 |
|
|
|
15 |
|
|
|
16 |
|
|
|
|
1,408 |
|
|
|
1,163 |
|
|
|
1,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
371 |
|
|
|
494 |
|
|
|
353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
3,055 |
|
|
|
2,620 |
|
|
|
2,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets held for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
4,996 |
|
|
|
4,060 |
|
|
|
4,958 |
|
SHAREHOLDERS EQUITY AND LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31, |
|
|
Mar 31, |
|
|
Dec 31, |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
2006 |
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
|
241 |
|
|
|
241 |
|
|
|
241 |
|
Share premium reserve |
|
|
77 |
|
|
|
76 |
|
|
|
77 |
|
Cumulative translation
differences |
|
|
(45 |
) |
|
|
(16 |
) |
|
|
(45 |
) |
Fair value and other reserves |
|
|
436 |
|
|
|
434 |
|
|
|
432 |
|
Retained earnings |
|
|
827 |
|
|
|
618 |
|
|
|
763 |
|
Equity attributable to
shareholders |
|
|
1,536 |
|
|
|
1,353 |
|
|
|
1,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interests |
|
|
6 |
|
|
|
6 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
1,542 |
|
|
|
1,359 |
|
|
|
1,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
590 |
|
|
|
589 |
|
|
|
605 |
|
Post employment benefit
obligations |
|
|
159 |
|
|
|
153 |
|
|
|
157 |
|
Deferred tax liability |
|
|
54 |
|
|
|
21 |
|
|
|
57 |
|
Provisions |
|
|
50 |
|
|
|
32 |
|
|
|
53 |
|
Other long-term liabilities |
|
|
2 |
|
|
|
4 |
|
|
|
2 |
|
Total non-current liabilities |
|
|
855 |
|
|
|
799 |
|
|
|
874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term
debt |
|
|
107 |
|
|
|
160 |
|
|
|
93 |
|
Short-term debt |
|
|
50 |
|
|
|
29 |
|
|
|
132 |
|
Trade and other payables |
|
|
1,302 |
|
|
|
936 |
|
|
|
1,238 |
|
Provisions |
|
|
203 |
|
|
|
181 |
|
|
|
213 |
|
Advances received |
|
|
653 |
|
|
|
399 |
|
|
|
655 |
|
Billings in excess of cost and
earnings of projects under
construction |
|
|
230 |
|
|
|
164 |
|
|
|
222 |
|
Tax liabilities |
|
|
54 |
|
|
|
33 |
|
|
|
57 |
|
Total current liabilities |
|
|
2,599 |
|
|
|
1,902 |
|
|
|
2,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities held for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
3,454 |
|
|
|
2,701 |
|
|
|
3,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS EQUITY AND
LIABILITIES |
|
|
4,996 |
|
|
|
4,060 |
|
|
|
4,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31, |
|
|
Mar 31, |
|
|
Dec 31, |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
2006 |
|
NET INTEREST BEARING LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term interest bearing debt |
|
|
590 |
|
|
|
589 |
|
|
|
605 |
|
Short-term interest bearing debt |
|
|
157 |
|
|
|
189 |
|
|
|
225 |
|
Cash and cash equivalents |
|
|
(371 |
) |
|
|
(494 |
) |
|
|
(353 |
) |
Other interest bearing assets |
|
|
(23 |
) |
|
|
(141 |
) |
|
|
(23 |
) |
Total |
|
|
353 |
|
|
|
143 |
|
|
|
454 |
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
1-12/ |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
2006 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) |
|
|
70 |
|
|
|
67 |
|
|
|
410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile profit
(loss) to net cash provided by
operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
36 |
|
|
|
26 |
|
|
|
105 |
|
Provisions / Efficiency
improvement programs |
|
|
0 |
|
|
|
(2 |
) |
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interests and dividend income |
|
|
6 |
|
|
|
8 |
|
|
|
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
30 |
|
|
|
21 |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
4 |
|
|
|
1 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net working capital |
|
|
1 |
|
|
|
62 |
|
|
|
(18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operations |
|
|
147 |
|
|
|
183 |
|
|
|
534 |
|
Interest paid and dividends
received |
|
|
0 |
|
|
|
1 |
|
|
|
(24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes paid |
|
|
(24 |
) |
|
|
(15 |
) |
|
|
(68 |
) |
Net cash provided by (used in)
operating activities |
|
|
123 |
|
|
|
169 |
|
|
|
442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures on fixed
assets |
|
|
(32 |
) |
|
|
(26 |
) |
|
|
(129 |
) |
Proceeds from sale of fixed
assets |
|
|
6 |
|
|
|
9 |
|
|
|
14 |
|
Business acquisitions, net of
cash acquired |
|
|
|
|
|
|
|
|
|
|
(277 |
) |
Proceeds from sale of businesses,
net of cash sold |
|
|
2 |
|
|
|
|
|
|
|
13 |
|
(Investments in) proceeds from
sale of financial assets |
|
|
3 |
|
|
|
33 |
|
|
|
154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
0 |
|
|
|
1 |
|
|
|
(2 |
) |
Net cash provided by (used in)
investing activities |
|
|
(21 |
) |
|
|
17 |
|
|
|
(227 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
1-12/ |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
2006 |
|
Share options exercised |
|
|
0 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redemption of own shares |
|
|
|
|
|
|
|
|
|
|
(11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
|
|
|
|
|
|
|
|
|
(198 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net funding |
|
|
(85 |
) |
|
|
(8 |
) |
|
|
35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
(5 |
) |
|
|
(6 |
) |
Net cash provided by (used in) financing
activities |
|
|
(85 |
) |
|
|
(13 |
) |
|
|
(179 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and
cash equivalents |
|
|
17 |
|
|
|
173 |
|
|
|
36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect from changes in exchange rates |
|
|
1 |
|
|
|
(2 |
) |
|
|
(6 |
) |
Cash and cash equivalents at beginning
of period |
|
|
353 |
|
|
|
323 |
|
|
|
323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
|
371 |
|
|
|
494 |
|
|
|
353 |
|
Free cash flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
1-12/ |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
2006 |
|
Net cash provided by operating activities |
|
|
123 |
|
|
|
169 |
|
|
|
442 |
|
Capital expenditures on fixed assets |
|
|
(32 |
) |
|
|
(26 |
) |
|
|
(129 |
) |
Proceeds from sale of fixed assets |
|
|
6 |
|
|
|
9 |
|
|
|
14 |
|
Free cash flow |
|
|
97 |
|
|
|
152 |
|
|
|
327 |
|
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equi- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ty |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sha- |
|
|
Cumu- |
|
|
Fair |
|
|
|
|
|
|
attri- |
|
|
|
|
|
|
|
|
|
|
|
|
|
re |
|
|
lative |
|
|
value |
|
|
|
|
|
|
bu- |
|
|
|
|
|
|
|
|
|
|
|
|
|
pre- |
|
|
trans- |
|
|
and |
|
|
|
|
|
|
table |
|
|
|
|
|
|
|
|
|
Sha- |
|
|
mium |
|
|
lation |
|
|
other |
|
|
Retai- |
|
|
to |
|
|
Mino- |
|
|
To- |
|
|
|
re |
|
|
re- |
|
|
ad- |
|
|
re- |
|
|
ned |
|
|
share- |
|
|
rity |
|
|
tal |
|
|
|
capi- |
|
|
ser- |
|
|
just- |
|
|
ser- |
|
|
ear- |
|
|
hol- |
|
|
inte- |
|
|
equi- |
|
EUR million |
|
tal |
|
|
ve |
|
|
ments |
|
|
ves |
|
|
nings |
|
|
ders |
|
|
rest |
|
|
ty |
|
Balance at
Jan 1, 2006 |
|
|
241 |
|
|
|
76 |
|
|
|
(9 |
) |
|
|
424 |
|
|
|
553 |
|
|
|
1,285 |
|
|
|
7 |
|
|
|
1,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share options
exercised |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Translation
differences |
|
|
|
|
|
|
|
|
|
|
(13 |
) |
|
|
|
|
|
|
|
|
|
|
(13 |
) |
|
|
|
|
|
|
(13 |
) |
Net investment
hedge gains
(losses) |
|
|
|
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equi- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ty |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sha- |
|
|
Cumu- |
|
|
Fair |
|
|
|
|
|
|
attri- |
|
|
|
|
|
|
|
|
|
|
|
|
|
re |
|
|
lative |
|
|
value |
|
|
|
|
|
|
bu- |
|
|
|
|
|
|
|
|
|
|
|
|
|
pre- |
|
|
trans- |
|
|
and |
|
|
|
|
|
|
table |
|
|
|
|
|
|
|
|
|
Sha- |
|
|
mium |
|
|
lation |
|
|
other |
|
|
Retai- |
|
|
to |
|
|
Mino- |
|
|
To- |
|
|
|
re |
|
|
re- |
|
|
ad- |
|
|
re- |
|
|
ned |
|
|
share- |
|
|
rity |
|
|
tal |
|
|
|
capi- |
|
|
ser- |
|
|
just- |
|
|
ser- |
|
|
ear- |
|
|
hol- |
|
|
inte- |
|
|
equi- |
|
EUR million |
|
tal |
|
|
ve |
|
|
ments |
|
|
ves |
|
|
nings |
|
|
ders |
|
|
rest |
|
|
ty |
|
Cash flow hedges,
net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
10 |
|
Available-for-
sale equity
investments,
net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
(1 |
) |
Net profit for
the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
67 |
|
|
|
67 |
|
|
|
0 |
|
|
|
67 |
|
Balance at
Mar 31, 2006 |
|
|
241 |
|
|
|
76 |
|
|
|
(16 |
) |
|
|
434 |
|
|
|
618 |
|
|
|
1,353 |
|
|
|
6 |
|
|
|
1,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
Dec 31, 2006 |
|
|
241 |
|
|
|
77 |
|
|
|
(45 |
) |
|
|
432 |
|
|
|
763 |
|
|
|
1,468 |
|
|
|
6 |
|
|
|
1,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share options
exercised |
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
|
|
|
|
|
|
|
0 |
|
Translation
differences |
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
8 |
|
Net investment
hedge gains
(losses) |
|
|
|
|
|
|
|
|
|
|
(8 |
) |
|
|
|
|
|
|
|
|
|
|
(8 |
) |
|
|
|
|
|
|
(8 |
) |
Cash flow hedges,
net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
(2 |
) |
Available-for-
sale equity
investments,
net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redemption of
own shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 |
|
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
0 |
|
Net profit for
the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70 |
|
|
|
70 |
|
|
|
0 |
|
|
|
70 |
|
Balance at
Mar 31, 2007 |
|
|
241 |
|
|
|
77 |
|
|
|
(45 |
) |
|
|
436 |
|
|
|
827 |
|
|
|
1,536 |
|
|
|
6 |
|
|
|
1,542 |
|
ACQUISITIONS
Metso Minerals acquired North American metal recycling provider, Bulk
Equipment Systems and Technologies Inc (B.E.S.T. Inc), on March 30, 2007.
The acquisition price, which was paid in April, was approximately EUR 9 million.
The companys net sales were about EUR 2 million and net income approximately
EUR 0.2 million in January-March 2007. Part of the excess purchase price, EUR 2
million, was allocated to intangible assets, representing the calculated
preliminary fair values of acquired customer base, brands, new technology and
order backlog. The remaining excess arising from the acquisition, EUR 7
million, represents goodwill related to Metsos improved position in
the North American metal recycling market.
Information on acquisitions for January-March 2007 is as follows (there were no
acquisitions in the comparison period January-March 2006):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value |
|
|
|
|
EUR million |
|
Carrying amount |
|
|
allocations |
|
|
Fair value |
|
Intangible assets |
|
|
|
|
|
|
2 |
|
|
|
2 |
|
Property, plant and equipment |
|
|
0 |
|
|
|
|
|
|
|
0 |
|
Inventories |
|
|
1 |
|
|
|
0 |
|
|
|
1 |
|
Trade and other receivables |
|
|
1 |
|
|
|
|
|
|
|
1 |
|
Deferred tax liabilities |
|
|
|
|
|
|
(1 |
) |
|
|
(1 |
) |
Other liabilities assumed |
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
Non-interest bearing net assets |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents acquired |
|
|
0 |
|
|
|
|
|
|
|
0 |
|
Debt assumed |
|
|
0 |
|
|
|
|
|
|
|
0 |
|
Purchase price |
|
|
(9 |
) |
|
|
|
|
|
|
(9 |
) |
Goodwill |
|
|
8 |
|
|
|
(1 |
) |
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase price payable |
|
|
|
|
|
|
|
|
|
|
(9 |
) |
ASSETS PLEDGED AND CONTINGENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31, |
|
|
Mar 31, |
|
|
Dec 31, |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
2006 |
|
Mortgages on corporate debt |
|
|
14 |
|
|
|
3 |
|
|
|
14 |
|
Other pledges and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
Pledged assets |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Guarantees on behalf of associated
company obligations |
|
|
|
|
|
|
|
|
|
|
|
|
Other guarantees |
|
|
9 |
|
|
|
4 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase and other commitments |
|
|
9 |
|
|
|
12 |
|
|
|
10 |
|
Lease commitments |
|
|
155 |
|
|
|
123 |
|
|
|
166 |
|
NOTIONAL AMOUNTS OF DERIVATIVE FINANCIAL INSTRUMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31, |
|
|
Mar 31, |
|
|
Dec 31, |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
2006 |
|
Forward exchange rate contracts |
|
|
1,459 |
|
|
|
1,142 |
|
|
|
1,357 |
|
Interest rate and currency swaps |
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
Currency swaps |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Interest rate swaps |
|
|
143 |
|
|
|
183 |
|
|
|
143 |
|
Interest rate futures contracts |
|
|
|
|
|
|
|
|
|
|
|
|
Option agreements |
|
|
|
|
|
|
|
|
|
|
|
|
Bought |
|
|
11 |
|
|
|
5 |
|
|
|
7 |
|
Sold |
|
|
12 |
|
|
|
11 |
|
|
|
6 |
|
The notional amount of electricity forwards was 463 GWh as of March 31,
2007 and 382 GWh as of March 31, 2006.
The notional amounts indicate the volumes in the use of derivatives, but do not
indicate the exposure to risk.
KEY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
1-12/ |
|
|
|
2007 |
|
|
2006 |
|
|
2006 |
|
Earnings per share from continuing
operations, EUR |
|
|
0.50 |
|
|
|
0.47 |
|
|
|
2.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from
discontinued operations, EUR |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing
and discontinued operations, EUR |
|
|
0.50 |
|
|
|
0.47 |
|
|
|
2.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity/share at end of period, EUR |
|
|
10.86 |
|
|
|
9.56 |
|
|
|
10.38 |
|
Return on equity (ROE),
% (annualized) |
|
|
20.0 |
|
|
|
22.1 |
|
|
|
30.3 |
|
Return on capital employed (ROCE),
% (annualized) |
|
|
20.7 |
|
|
|
20.2 |
|
|
|
22.2 |
|
Equity to assets ratio at end
of period, % |
|
|
37.5 |
|
|
|
38.9 |
|
|
|
36.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gearing at end of period, % |
|
|
22.9 |
|
|
|
10.5 |
|
|
|
30.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow |
|
|
97 |
|
|
|
152 |
|
|
|
327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow/share |
|
|
0.68 |
|
|
|
1.07 |
|
|
|
2.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross capital expenditure of
continuing operations (excl.
business acquisitions) |
|
|
32 |
|
|
|
26 |
|
|
|
131 |
|
Business acquisitions, net of cash
acquired |
|
|
|
|
|
|
|
|
|
|
277 |
|
Depreciation and amortization of
continuing operations |
|
|
36 |
|
|
|
26 |
|
|
|
105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of outstanding shares at end
of period (thousands) |
|
|
141,494 |
|
|
|
141,594 |
|
|
|
141,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of shares (thousands) |
|
|
141,364 |
|
|
|
141,594 |
|
|
|
141,581 |
|
Average number of diluted shares
(thousands) |
|
|
141,364 |
|
|
|
141,628 |
|
|
|
141,600 |
|
EXCHANGE
RATES USED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
1-12/ |
|
|
Mar 31, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
|
2007 |
|
|
2006 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
|
2006 |
|
USD (US dollar) |
|
|
1.3161 |
|
|
|
1.2032 |
|
|
|
1.2630 |
|
|
|
1.3318 |
|
|
|
1.2104 |
|
|
|
1.3170 |
|
SEK (Swedish krona) |
|
|
9.2248 |
|
|
|
9.3769 |
|
|
|
9.2533 |
|
|
|
9.3462 |
|
|
|
9.4315 |
|
|
|
9.0404 |
|
GBP (Pound sterling) |
|
|
0.6722 |
|
|
|
0.6868 |
|
|
|
0.6819 |
|
|
|
0.6798 |
|
|
|
0.6964 |
|
|
|
0.6715 |
|
CAD (Canadian dollar) |
|
|
1.5370 |
|
|
|
1.3829 |
|
|
|
1.4267 |
|
|
|
1.5366 |
|
|
|
1.4084 |
|
|
|
1.5281 |
|
BRL (Brazilian real) |
|
|
2.7699 |
|
|
|
2.6216 |
|
|
|
2.7375 |
|
|
|
2.7195 |
|
|
|
2.6484 |
|
|
|
2.8105 |
|
BUSINESS AREA INFORMATION
Metso Ventures Business Area was dismantled as of January 1, 2007. Two of
Metsos three foundries were transferred to Metso Paper and one to Metso
Minerals. Metso Panelboard became part of Metso Paper. Valmet Automotive is
reported as part of Corporate Office and others group. Comparative segment
information for 2006 is presented according to the new organization structure.
Aker Kvaerners Pulping and Power businesses were acquired as of December 29,
2006 and the acquired balance sheet was consolidated to Metso as of December
31, 2006. The acquired businesses had no effect to Metsos income statement for
2006 and are therefore not included in the comparative segment information
except for capital employed, order backlog and personnel as at December 31,
2006.
NET SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
4/2006-3/ |
|
|
1-12/ |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
Metso Paper |
|
|
666 |
|
|
|
417 |
|
|
|
2,341 |
|
|
|
2,092 |
|
Metso Minerals |
|
|
540 |
|
|
|
503 |
|
|
|
2,236 |
|
|
|
2,199 |
|
Metso Automation |
|
|
146 |
|
|
|
134 |
|
|
|
625 |
|
|
|
613 |
|
Valmet Automotive |
|
|
28 |
|
|
|
31 |
|
|
|
106 |
|
|
|
109 |
|
Corporate office and other |
|
|
|
|
|
|
3 |
|
|
|
7 |
|
|
|
10 |
|
Corporate office and others total |
|
|
28 |
|
|
|
34 |
|
|
|
113 |
|
|
|
119 |
|
Intra Metso net sales |
|
|
(14 |
) |
|
|
(10 |
) |
|
|
(72 |
) |
|
|
(68 |
) |
Metso total |
|
|
1,366 |
|
|
|
1,078 |
|
|
|
5,243 |
|
|
|
4,955 |
|
OTHER OPERATING INCOME (+) AND EXPENSES (-), NET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
4/2006- |
|
|
1-12/ |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
3/2007 |
|
|
2006 |
|
Metso Paper |
|
|
1.9 |
|
|
|
0.9 |
|
|
|
(10.0 |
) |
|
|
(11.0 |
) |
Metso Minerals |
|
|
1.2 |
|
|
|
2.3 |
|
|
|
15.0 |
|
|
|
16.1 |
|
Metso Automation |
|
|
0.5 |
|
|
|
0.2 |
|
|
|
0.6 |
|
|
|
0.3 |
|
Valmet Automotive |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
Corporate office and other |
|
|
2.2 |
|
|
|
(1.8 |
) |
|
|
4.4 |
|
|
|
0.4 |
|
Corporate office and others total |
|
|
2.2 |
|
|
|
(1.8 |
) |
|
|
4.4 |
|
|
|
0.4 |
|
Metso total |
|
|
5.8 |
|
|
|
1.6 |
|
|
|
10.0 |
|
|
|
5.8 |
|
SHARE IN PROFITS OF ASSOCIATED COMPANIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
4/2006-3/ |
|
|
1-12/ |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
Metso Paper |
|
|
0.4 |
|
|
|
0.3 |
|
|
|
1.8 |
|
|
|
1.7 |
|
Metso Minerals |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.1 |
|
|
|
0.1 |
|
Metso Automation |
|
|
0.0 |
|
|
|
0.2 |
|
|
|
0.6 |
|
|
|
0.8 |
|
Valmet Automotive |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate office and other |
|
|
0.0 |
|
|
|
(0.6 |
) |
|
|
(1.1 |
) |
|
|
(1.7 |
) |
Corporate office and others total |
|
|
0.0 |
|
|
|
(0.6 |
) |
|
|
(1.1 |
) |
|
|
(1.7 |
) |
Metso total |
|
|
0.4 |
|
|
|
(0.1 |
) |
|
|
1.4 |
|
|
|
0.9 |
|
OPERATING PROFIT (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
4/2006- |
|
|
1-12/ |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
3/2007 |
|
|
2006 |
|
Metso Paper |
|
|
25.4 |
|
|
|
21.5 |
|
|
|
93.7 |
|
|
|
89.8 |
|
Metso Minerals |
|
|
67.8 |
|
|
|
60.2 |
|
|
|
305.3 |
|
|
|
297.7 |
|
Metso Automation |
|
|
15.5 |
|
|
|
15.3 |
|
|
|
86.9 |
|
|
|
86.7 |
|
Valmet Automotive |
|
|
4.4 |
|
|
|
5.0 |
|
|
|
11.1 |
|
|
|
11.7 |
|
Corporate office and other |
|
|
(4.7 |
) |
|
|
(6.6 |
) |
|
|
(26.8 |
) |
|
|
(28.7 |
) |
Corporate office and others total |
|
|
(0.3 |
) |
|
|
(1.6 |
) |
|
|
(15.7 |
) |
|
|
(17.0 |
) |
Metso total |
|
|
108.4 |
|
|
|
95.4 |
|
|
|
470.2 |
|
|
|
457.2 |
|
OPERATING PROFIT (LOSS), % OF NET SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
4/2006- |
|
|
1-12/ |
|
% |
|
2007 |
|
|
2006 |
|
|
3/2007 |
|
|
2006 |
|
Metso Paper |
|
|
3.8 |
|
|
|
5.2 |
|
|
|
4.0 |
|
|
|
4.3 |
|
Metso Minerals |
|
|
12.6 |
|
|
|
12.0 |
|
|
|
13.7 |
|
|
|
13.5 |
|
Metso Automation |
|
|
10.6 |
|
|
|
11.4 |
|
|
|
13.9 |
|
|
|
14.1 |
|
Valmet Automotive |
|
|
15.7 |
|
|
|
16.1 |
|
|
|
10.5 |
|
|
|
10.7 |
|
Corporate office and other |
|
|
n/a |
|
|
|
n/a |
|
|
|
n/a |
|
|
|
n/a |
|
Corporate office and others total |
|
|
n/a |
|
|
|
n/a |
|
|
|
n/a |
|
|
|
n/a |
|
Metso total |
|
|
7.9 |
|
|
|
8.8 |
|
|
|
9.0 |
|
|
|
9.2 |
|
EBITA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
4/2006- |
|
|
1-12/ |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
3/2007 |
|
|
2006 |
|
Metso Paper |
|
|
37.1 |
|
|
|
23.8 |
|
|
|
118.9 |
|
|
|
105.6 |
|
Metso Minerals |
|
|
68.7 |
|
|
|
61.5 |
|
|
|
309.3 |
|
|
|
302.1 |
|
Metso Automation |
|
|
15.9 |
|
|
|
15.7 |
|
|
|
88.5 |
|
|
|
88.3 |
|
Valmet Automotive |
|
|
4.4 |
|
|
|
5.0 |
|
|
|
11.1 |
|
|
|
11.7 |
|
Corporate office and other |
|
|
(4.2 |
) |
|
|
(6.1 |
) |
|
|
(24.7 |
) |
|
|
(26.6 |
) |
Corporate office and others total |
|
|
0.2 |
|
|
|
(1.1 |
) |
|
|
(13.6 |
) |
|
|
(14.9 |
) |
Metso total |
|
|
121.9 |
|
|
|
99.9 |
|
|
|
503.1 |
|
|
|
481.1 |
|
EBITA, % OF NET SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
4/2006- |
|
|
1-12/ |
|
% |
|
2007 |
|
|
2006 |
|
|
3/2007 |
|
|
2006 |
|
Metso Paper |
|
|
5.6 |
|
|
|
5.7 |
|
|
|
5.1 |
|
|
|
5.0 |
|
Metso Minerals |
|
|
12.7 |
|
|
|
12.2 |
|
|
|
13.8 |
|
|
|
13.7 |
|
Metso Automation |
|
|
10.9 |
|
|
|
11.7 |
|
|
|
14.2 |
|
|
|
14.4 |
|
Valmet Automotive |
|
|
15.7 |
|
|
|
16.1 |
|
|
|
10.5 |
|
|
|
10.7 |
|
Corporate office and other |
|
|
n/a |
|
|
|
n/a |
|
|
|
n/a |
|
|
|
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
4/2006- |
|
|
1-12/ |
|
% |
|
2007 |
|
|
2006 |
|
|
3/2007 |
|
|
2006 |
|
Corporate office and others total |
|
|
n/a |
|
|
|
n/a |
|
|
|
n/a |
|
|
|
n/a |
|
Metso total |
|
|
8.9 |
|
|
|
9.3 |
|
|
|
9.6 |
|
|
|
9.7 |
|
ORDERS RECEIVED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
1-3/ |
|
|
4/2006-3/ |
|
|
1-12/ |
|
EUR million |
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
Metso Paper |
|
|
653 |
|
|
|
544 |
|
|
|
2,385 |
|
|
|
2,276 |
|
Metso Minerals |
|
|
771 |
|
|
|
686 |
|
|
|
2,740 |
|
|
|
2,655 |
|
Metso Automation |
|
|
228 |
|
|
|
191 |
|
|
|
754 |
|
|
|
717 |
|
Valmet Automotive |
|
|
28 |
|
|
|
31 |
|
|
|
106 |
|
|
|
109 |
|
Corporate office and other |
|
|
0 |
|
|
|
2 |
|
|
|
13 |
|
|
|
15 |
|
Corporate office and others total |
|
|
28 |
|
|
|
33 |
|
|
|
119 |
|
|
|
124 |
|
Intra Metso orders received |
|
|
(16 |
) |
|
|
(17 |
) |
|
|
(66 |
) |
|
|
(67 |
) |
Metso total |
|
|
1,664 |
|
|
|
1,437 |
|
|
|
5,932 |
|
|
|
5,705 |
|
QUARTERLY INFORMATION
NET SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
4-6/ |
|
|
7-9/ |
|
|
10-12/ |
|
|
1-3/ |
|
EUR million |
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2007 |
|
Metso Paper |
|
|
417 |
|
|
|
469 |
|
|
|
489 |
|
|
|
717 |
|
|
|
666 |
|
Metso Minerals |
|
|
503 |
|
|
|
541 |
|
|
|
525 |
|
|
|
630 |
|
|
|
540 |
|
Metso Automation |
|
|
134 |
|
|
|
140 |
|
|
|
146 |
|
|
|
193 |
|
|
|
146 |
|
Valmet Automotive |
|
|
31 |
|
|
|
28 |
|
|
|
22 |
|
|
|
28 |
|
|
|
28 |
|
Corporate office and other |
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
|
|
3 |
|
|
|
|
|
Corporate office and others total |
|
|
34 |
|
|
|
30 |
|
|
|
24 |
|
|
|
31 |
|
|
|
28 |
|
Intra Metso net sales |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
(15 |
) |
|
|
(33 |
) |
|
|
(14 |
) |
Metso total |
|
|
1,078 |
|
|
|
1,170 |
|
|
|
1,169 |
|
|
|
1,538 |
|
|
|
1,366 |
|
OTHER
OPERATING INCOME (+) AND EXPENSES (), NET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
4-6/ |
|
|
7-9/ |
|
|
10-12/ |
|
|
1-3/ |
|
EUR million |
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2007 |
|
Metso Paper |
|
|
0.9 |
|
|
|
1.7 |
|
|
|
(3.2 |
) |
|
|
(10.4 |
) |
|
|
1.9 |
|
Metso Minerals |
|
|
2.3 |
|
|
|
3.2 |
|
|
|
(0.1 |
) |
|
|
10.7 |
|
|
|
1.2 |
|
Metso Automation |
|
|
0.2 |
|
|
|
0.1 |
|
|
|
(0.4 |
) |
|
|
0.4 |
|
|
|
0.5 |
|
Valmet Automotive |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
Corporate office and other |
|
|
(1.8 |
) |
|
|
2.9 |
|
|
|
0.4 |
|
|
|
(1.1 |
) |
|
|
2.2 |
|
Corporate office and others total |
|
|
(1.8 |
) |
|
|
2.9 |
|
|
|
0.4 |
|
|
|
(1.1 |
) |
|
|
2.2 |
|
Metso total |
|
|
1.6 |
|
|
|
7.9 |
|
|
|
(3.3 |
) |
|
|
(0.4 |
) |
|
|
5.8 |
|
OPERATING PROFIT (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
4-6/ |
|
|
7-9/ |
|
|
10-12/ |
|
|
1-3/ |
|
EUR million |
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2007 |
|
Metso Paper |
|
|
21.5 |
|
|
|
25.1 |
|
|
|
30.0 |
|
|
|
13.2 |
|
|
|
25.4 |
|
Metso Minerals |
|
|
60.2 |
|
|
|
71.6 |
|
|
|
75.9 |
|
|
|
90.0 |
|
|
|
67.8 |
|
Metso Automation |
|
|
15.3 |
|
|
|
19.6 |
|
|
|
20.0 |
|
|
|
31.8 |
|
|
|
15.5 |
|
Valmet Automotive |
|
|
5.0 |
|
|
|
4.0 |
|
|
|
1.7 |
|
|
|
1.0 |
|
|
|
4.4 |
|
Corporate office and other |
|
|
(6.6 |
) |
|
|
(3.9 |
) |
|
|
(7.2 |
) |
|
|
(11.0 |
) |
|
|
(4.7 |
) |
Corporate office and others total |
|
|
(1.6 |
) |
|
|
0.1 |
|
|
|
(5.5 |
) |
|
|
(10.0 |
) |
|
|
(0.3 |
) |
Metso total |
|
|
95.4 |
|
|
|
116.4 |
|
|
|
120.4 |
|
|
|
125.0 |
|
|
|
108.4 |
|
EBITA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
4-6/ |
|
|
7-9/ |
|
|
10-12/ |
|
|
1-3/ |
|
EUR million |
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2007 |
|
Metso Paper |
|
|
23.8 |
|
|
|
27.4 |
|
|
|
32.3 |
|
|
|
22.1 |
|
|
|
37.1 |
|
Metso Minerals |
|
|
61.5 |
|
|
|
72.8 |
|
|
|
76.7 |
|
|
|
91.1 |
|
|
|
68.7 |
|
Metso Automation |
|
|
15.7 |
|
|
|
19.9 |
|
|
|
20.5 |
|
|
|
32.2 |
|
|
|
15.9 |
|
Valmet Automotive |
|
|
5.0 |
|
|
|
4.0 |
|
|
|
1.7 |
|
|
|
1.0 |
|
|
|
4.4 |
|
Corporate office and other |
|
|
(6.1 |
) |
|
|
(3.4 |
) |
|
|
(6.8 |
) |
|
|
(10.3 |
) |
|
|
(4.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
4-6/ |
|
|
7-9/ |
|
|
10-12/ |
|
|
1-3/ |
|
EUR million |
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2007 |
|
Corporate office and others total |
|
|
(1.1 |
) |
|
|
0.6 |
|
|
|
(5.1 |
) |
|
|
(9.3 |
) |
|
|
0.2 |
|
Metso total |
|
|
99.9 |
|
|
|
120.7 |
|
|
|
124.4 |
|
|
|
136.1 |
|
|
|
121.9 |
|
CAPITAL EMPLOYED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR million |
|
Mar 31, |
|
|
June 30, |
|
|
Sep 30, |
|
|
Dec 31, |
|
|
Mar 31, 2007 |
|
|
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
|
|
Metso Paper |
|
|
266 |
|
|
|
300 |
|
|
|
292 |
|
|
|
631 |
|
|
|
572 |
|
Metso Minerals |
|
|
934 |
|
|
|
939 |
|
|
|
955 |
|
|
|
967 |
|
|
|
983 |
|
Metso Automation |
|
|
123 |
|
|
|
132 |
|
|
|
130 |
|
|
|
149 |
|
|
|
156 |
|
Valmet Automotive |
|
|
32 |
|
|
|
28 |
|
|
|
31 |
|
|
|
23 |
|
|
|
23 |
|
Corporate office and other |
|
|
783 |
|
|
|
656 |
|
|
|
745 |
|
|
|
534 |
|
|
|
555 |
|
Corporate office and others total |
|
|
815 |
|
|
|
684 |
|
|
|
776 |
|
|
|
557 |
|
|
|
578 |
|
Metso total |
|
|
2,138 |
|
|
|
2,055 |
|
|
|
2,153 |
|
|
|
2,304 |
|
|
|
2,289 |
|
ORDERS RECEIVED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-3/ |
|
|
4-6/ |
|
|
7-9/ |
|
|
10-12/ |
|
|
1-3/ |
|
EUR million |
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2007 |
|
Metso Paper |
|
|
544 |
|
|
|
564 |
|
|
|
491 |
|
|
|
677 |
|
|
|
653 |
|
Metso Minerals |
|
|
686 |
|
|
|
628 |
|
|
|
636 |
|
|
|
705 |
|
|
|
771 |
|
Metso Automation |
|
|
191 |
|
|
|
181 |
|
|
|
183 |
|
|
|
162 |
|
|
|
228 |
|
Valmet Automotive |
|
|
31 |
|
|
|
28 |
|
|
|
22 |
|
|
|
28 |
|
|
|
28 |
|
Corporate office and other |
|
|
2 |
|
|
|
3 |
|
|
|
6 |
|
|
|
4 |
|
|
|
0 |
|
Corporate office and others total |
|
|
33 |
|
|
|
31 |
|
|
|
28 |
|
|
|
32 |
|
|
|
28 |
|
Intra Metso orders received |
|
|
(17 |
) |
|
|
(14 |
) |
|
|
(17 |
) |
|
|
(19 |
) |
|
|
(16 |
) |
Metso total |
|
|
1,437 |
|
|
|
1,390 |
|
|
|
1,321 |
|
|
|
1,557 |
|
|
|
1,664 |
|
ORDER BACKLOG
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31, |
|
|
June 30, |
|
|
Sep 30, |
|
|
Dec 31, |
|
|
Mar 31, |
|
EUR million |
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2007 |
|
Metso Paper |
|
|
1,459 |
|
|
|
1,540 |
|
|
|
1,547 |
|
|
|
2,225 |
|
|
|
2,190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR million |
|
Mar 31, |
|
|
June 30, |
|
|
Sep 30, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2007 |
|
Metso Minerals |
|
|
1,043 |
|
|
|
1,101 |
|
|
|
1,213 |
|
|
|
1,277 |
|
|
|
1,497 |
|
Metso Automation |
|
|
234 |
|
|
|
272 |
|
|
|
309 |
|
|
|
276 |
|
|
|
356 |
|
Valmet Automotive |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate office and other |
|
|
3 |
|
|
|
3 |
|
|
|
7 |
|
|
|
0 |
|
|
|
0 |
|
Corporate office and others total |
|
|
3 |
|
|
|
3 |
|
|
|
7 |
|
|
|
0 |
|
|
|
0 |
|
Intra Metso order backlog |
|
|
(47 |
) |
|
|
(52 |
) |
|
|
(54 |
) |
|
|
(41 |
) |
|
|
(44 |
) |
Metso total |
|
|
2,692 |
|
|
|
2,864 |
|
|
|
3,022 |
|
|
|
3,737 |
|
|
|
3,999 |
|
PERSONNEL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31, |
|
|
June 30, |
|
|
Sep 30, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2006 |
|
|
2007 |
|
Metso Paper |
|
|
8,902 |
|
|
|
9,328 |
|
|
|
9,445 |
|
|
|
11,558 |
|
|
|
11,469 |
|
Metso Minerals |
|
|
8,914 |
|
|
|
9,124 |
|
|
|
9,158 |
|
|
|
9,433 |
|
|
|
9,545 |
|
Metso Automation |
|
|
3,170 |
|
|
|
3,341 |
|
|
|
3,315 |
|
|
|
3,352 |
|
|
|
3,379 |
|
Valmet Automotive |
|
|
1,088 |
|
|
|
1,077 |
|
|
|
1,082 |
|
|
|
1,013 |
|
|
|
899 |
|
Corporate office and other |
|
|
329 |
|
|
|
351 |
|
|
|
342 |
|
|
|
322 |
|
|
|
324 |
|
Corporate office and others total |
|
|
1,417 |
|
|
|
1,428 |
|
|
|
1,424 |
|
|
|
1,335 |
|
|
|
1,223 |
|
Metso total |
|
|
22,403 |
|
|
|
23,221 |
|
|
|
23,342 |
|
|
|
25,678 |
|
|
|
25,616 |
|
NOTES TO THE INTERIM REVIEW
This interim review has been prepared in accordance with IAS 34 Interim Financial Reporting. The
same accounting principles have been applied as in the annual financial statements.
New accounting standards
IFRS 7
In August 2005, IASB issued IFRS 7 Financial Instruments: Disclosures which requires the company
to disclose information enabling users of its financial statements to evaluate the significance of
financial instruments to its financial position and performance. Metso adopted the standard and the
related amendments to IAS 1 Presentation of Financial Statements from January 1, 2007.
IFRS 8
In November 2006, the IASB issued IFRS 8 Operating segments which requires the application of the
management approach in segment reporting. This would result in uniformity between the disclosed
information and the principles for evaluating
the financial performance of segments followed internally by the management. Metso will evaluate
the effects of IFRS 8 on the consolidated financial statements. The standard will come into force
in the financial years beginning after January 1, 2009, but may already be applied in earlier
financial years.
Shares traded on the Helsinki and New York Stock Exchanges
The number of Metso Corporation shares traded on the Helsinki Stock Exchange in January-March was
98 million, equivalent to a turnover of EUR 3,821 million. The share price on March 31, 2007 was
EUR 39.55. The highest quotation was EUR 42.20 and the lowest EUR 34.79.
The number of Metso ADRs (American Depository Receipts) traded on the New York Stock Exchange was
1.3 million, equivalent to a turnover of USD 66 million. The price of an ADR on March 31, 2007 was
USD 52.81. The highest quotation was USD 54.27 and the lowest USD 44.37.
Disclosures of changes in holdings
J.P. Morgan Chase & Co. announced that the funds they managed held 6,996,732 Metso shares/ADRs on
February 12, 2007 corresponding to 4.94 percent of the paid up share capital of Metso Corporation.
Publication dates for Metsos Interim Reviews in 2007
Metsos Interim Review for January June will be published on July 26, 2007,
Interim Review for January September on October 25, 2007.
Metso is a global engineering and technology corporation with 2006 net sales of approximately EUR 5
billion. Its 25,500 employees in more than 50 countries serve customers in the pulp and paper
industry, rock and minerals processing, the energy industry and selected other industries.
www.metso.com
Further information for the press, please contact:
Jorma Eloranta, President and CEO, Metso Corporation, tel. +358 204 84 3000
Olli Vaartimo, Executive Vice President and CFO, Metso Corporation, tel. +358 204 84 3010
Further information for investors, please contact:
Johanna Sintonen, Vice President, Investor Relations, Metso Corporation, tel. +358 20 484 3253
or
USA: Mike Phillips, Senior Vice President, Finance and Administration, Metso USA, Inc., tel. +1 770
246 7237.
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 companys 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.