Metso Outotec restructure ‘almost complete’
By Steve Ducker16 February 2021
Finland’s aggregates and mining specialist Metso Outotec has announced its first full-year financial results statement since the merger of the two companies was completed in the summer of 2020, saying it expects business to improve subject to the development of the Covid-19 pandemic.
The figures, covering the period from 1 January to 31 December, use both IFRS and illustrative combined information and take the divestment of the Metso Outotec recycling business in October 2020 into account.
In the fourth quarter of 2020, Metso Outotec reported sales of €977 million (US$1,183 million) compared to €1,087 million ($1,316 million) a year earlier, while orders increased from €1,045 million ($1,265 million) in 2019 to €1,304 million ($1,579 million). Adjusted EBITA (earnings before interest, tax and amortisation) was €103 million ($125 million) or 10.6% of sales, a fall from €138 million ($167 million) or 12.7% of sales the year before.
Operating profit was €44 million ($53 million), down by more than half from the €103 million posted in the equivalent quarter of 2019.
For the full year, sales totalled €3,987 million ($4,828 million) against an illustrative combined figure of €4,030 million ($4,480 million) in 2019.
Adjusted EBITA was down 12% at €448 million ($543 million) and operating profit fell from €423 million ($512 million) to €253 million ($306 million), a drop of 40%.
Metso Outotec president and CEO Pekka Varuamo said: “After the Metso Outotec merger was completed on June 30, 2020, we have been busy carrying out the integration, realising the synergies, and laying out the future direction of the new company. We proceeded swiftly and efficiently on all these fronts during the second half, and the initial results were visible already at the end of the year.
“The organisational restructuring is almost complete, and we reached a run rate of €65 million cost synergies by the end of December. In addition, the first revenue synergies have been achieved and booked in the order intake of 2020. Several actions are still ongoing and will be finalised during 2021.
“Our overall performance in 2020 was good in a market environment affected by the Covid-19 pandemic. Our annual orders and sales were organically only 5% and 4% lower compared to 2019, despite restrictions and limitations impacting our customer industries. The profitability of the Aggregates and Minerals segments was healthy.
“Metso Outotec expects the market activity to improve, subject to the development of the Covid-19 pandemic.”