Tuesday 2nd Jun, 2020

Metso’s reports strong growth in Q3

Metso’s sales have grown by 17 per cent since the start of the year, totalling $4.2 billion (EUR 2.67 billion), according to its interim review.

Operating profit during Metso’s third quarter has improved to $173.5 million (EU108 million), or 11.5 per cent of sales, resulting from higher volumes and operational efficiency across the business.

Orders received increased by one per cent over the quarter compared with the same time in 2018, with total quarterly sales reaching $1.5 billion (EUR 933 million).

The company said in the report that its balance sheet and liquidity position remains strong and with the acquisition of McCloskey International, a Canadian mobile crushing and screening equipment manufacturer, it expects to expand its global aggregates offering and strengthen its customer reach, especially to the general contractor segment.

“Our performance during the third quarter was solid and we continued to deliver good improvement from the previous quarters,” said Metso President and CEO Pekka Vauramo.

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“Activity in our end markets remained healthy and is visible in the strong order intake for services. Aggregates equipment orders were up slightly despite seasonally low quarter in the Northern Hemisphere and the Indian market remained softer than a year ago.

“Mining customers’ decision-making was slowed down by cautiousness with regards to global uncertainties. Sales growth continued at a double-digit rate in both segments and drove operational leverage, resulting in a clear improvement in profitability”

Vauramo said Metso made progress on several fronts in executing its profitable growth strategy, including the acquisition of McCloskey.

“Major steps were taken during the quarter in the planned combination of Metso Minerals and Outotec and in the formation of the future Neles, an independent valves business,” he said.

“We are on the road to creating two global leading companies: Metso Outotec, serving the aggregates, minerals processing and metals industries; and Neles, a focused supplier of valves for demanding applications.

“The closing is targeted to take place in the second quarter of 2020, after the necessary competition authority and other approvals. Until then we will remain fully focused on delivering on our current strategy.”