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Metso’s order intake in the third quarter grew 30% year-on-year in the third quarter of 2017, and the company said that market activity remained healthy.

President and CEO Nico Delvaux, however, said that the performance during the quarter was “clearly not satisfactory”.

Finnish-based Metso recently announced it had decided on a new operating model and organisation of the group, which will come into effect at the start of 2018.

This followed Metso’s announcement earlier in the year that a restructuring within the company was going to lead to two separate business areas – Minerals Services and Minerals Consumables.

For the third-quarter of 2017, orders totalled €817 million compared to €628 million for the same period a year earlier. Services orders increased 15% to €486 million, up from €422 million.

Sales increased 5% to €673 million, compared to €638 million a year earlier. Services sales increased 7% and totalled €440 million, up from €413 million.

Metso said that adjusted EBITA (earnings before interest, taxes and amortization) was €43.0 million, or 6.4% of sales. In the same period a year previously, it was €77.2 million, or 12.1%.

This year’s figure included €33.3 million charges related to mining projects in the backlog. The company reported that adjusted EBITA excluding these charges was €76.3 million or 11.3% of sales.

For the January to September 2017 period, compared to the corresponding period in 2016, orders received increased 12% and totalled €2,298 million, rising from €2,052 million. Services orders increased 13% from €1,299 million to €1,462 million.

Sales were reported to have increased 5% to €1,996 million from €1,910 million. Services sales increased 4% and totalled €1,308 million.

Adjusted EBITA was put at €179.4 million, or 9.0% of sales. In the same period a year earlier was €210.2 million – 11.0%.

Adjusted EBITA excluding the €33.3 million charges booked in the third quarter was €212.7 million or 10.7% of sales

President and CEO Nico Delvaux said, “Even when excluding the large mining equipment order booked during the quarter, we saw a healthy order increase across our businesses, which is reflective of the current market situation.

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Nico Delvaux

“However, our performance during the quarter was clearly not satisfactory. Especially disappointing was that we needed to book €33 million for cost overruns and write-downs related to mining projects in the backlog. Going forward, we will need to focus on our delivery capability and improve our operational excellence.”

He said that since he took over his role at the beginning of August, the company had been making some changes to the organisation and to the way it operated.

“Our aim is to improve the accountability of our businesses and to speed up decision-making, the implementation of our growth plans, and our response to market changes,” he said.

“I am convinced that these changes will help us to get the most out of the improved market conditions and deliver profitable growth going forward.”