Metso orders slip -52%

Metso Mining and Construction reported second quarter sales of € 531 million, down -20% on the € 665 million recorded 12 months ago. Pre-tax profits for the quarter fell -49%, from € 91,8 million in 2008 to € 46,9 million this year.

A company statement said the value of orders placed in the first half of 2009 declined by -52% from € 1,6 billion in 2008 to € 738 million this year.

Jorma Eloranta, president and CEO of Metso Corporation said, "Profitability of the construction business weakened from the comparable period last year due to lower delivery volumes, low utilisation of our factories and a € 5 million fee associated with the measures we took to cut capacity."

The statement confirmed the first half of 2009 saw € 50 million of existing orders cancelled and a -20% decline in the order backlog to € 1,1 billion, down on the € 1,5 billion reported on December 31, 2008.

"We estimate the business environment will continue to be demanding for the rest of this year," said Mr Eloranta. "In the construction industry, we estimate the demand for equipment relating to aggregate production will be weak.

"Many countries have introduced stimulus measures, which we expect to have a positive effect in the long term however," he confirmed.