Metso Outotec releases first combined financial results
By Andy Brown05 August 2020
The newly formed Metso Outotec has released a half year financial review for 2020 that shows that sales totalled €2.02 billion (US$2.38 billion) – €1.44 billion (US$1.70 billion) for Metso Minerals and €579 (US$684) million for Outotec.
The demerger of Metso Corporation and combination of Metso’s Minerals business and Outotec was completed on June 30, 2020.
In the half-year report, the segment reporting is still based on the legacy segment structure of the companies: Metso’s Minerals business and Outotec’s Minerals Processing and Metals Refining segments. The segment reporting based on the new Metso Outotec organization will be effective as of July 1, 2020, and will form the basis for the third quarter 2020 reporting.
In the same period last year Metso reported sales of €1.74 billion ($1.92 billion) but that was before the merger with Outec.
Adjusted EBITA (earnings before interest, tax and amortisation) for the first half of the year for Metso Outec was 11.7% at €236 million (US$278 million), €184 million (US$217 million) for Metso Minerals and €51 million (US$60 million) for Outotec.
President and CEO, Pekka Vauramo, said, “The second quarter was exceptional in many ways due to the Covid-19 situation. Most importantly we needed to ensure the safety and well-being of our personnel, customers, and business partners. We succeeded in this while continuing to serve our customers despite the limitations posed by pandemic-related restrictions around the world.”
Vauramo added that the demand for smaller new mining equipment was healthy but that the aggregates equipment was the business sector most impacted by Covid-19 in the second quarter with the investment activity of customers and distributors significantly lower than the normal.
The aggregates equipment business saw a gradual improvement from a weak April to the end of June, when the demand globally was about 75% compared to normal levels. China was the only exception, where business remained strong.
Talking about the new combination of Metso Minerals and Outotec, Vauramo commented, “We have actively started to integrate the two companies bringing about significant benefits to our customers, personnel, suppliers and shareholders. Metso Outotec is a unique combination focusing on supplying sustainable technologies, solutions and services to our customers to fulfill our promise of being the partner for positive change.”
Looking ahead, the company said it expects market activity to remain at the current level, being subject to a possible worsening of the Covid-19 pandemic. The report added that the situation continues to be challenging, particularly in North and South America.