Metso Outotec’s Financial Statements Review January 1 – December 31, 2022

Metso Outotec Corporation’s stock exchange release on February 17, 2023, at 09:00 a.m. EET

Figures in brackets refer to the corresponding period in 2021, unless otherwise stated.

Segment information for 2021 has been restated to reflect the segment structure changes that were announced in January 2022.

Fourth-quarter 2022 in brief

• Strong market activity across all businesses
• Orders received increased 21% and totaled EUR 1,590 million (EUR 1,310 million)
• Sales grew 12% to EUR 1,434 million (EUR 1,278 million)  
• Adjusted EBITA increased 30% to EUR 212 million, or 14.8% of sales (EUR 164 million, or 12.8%)
• Operating profit increased to EUR 185 million, or 12.9% of sales (EUR 130 million, or 10.2%)
• Cash flow from operations totaled EUR 212 million (EUR 164 million)

2022 in brief

• Orders received increased 11% to EUR 6,024 million (EUR 5,421 million)
• Sales grew 25% to EUR 5,295 million (EUR 4,236 million)  
• Adjusted EBITA increased 34% to EUR 731 million, or 13.8% of sales (EUR 547 million, or 12.9%)
• Operating profit was EUR 504 million, or 9.5% of sales (EUR 425 million, or 10.0%), including a EUR 150 million non-recurring charge related to the wind-down of the business in Russia booked in the second quarter
• Earnings per share were EUR 0.36 (EUR 0.41) and for continuing operations EUR 0.40 (EUR 0.35)
• Cash flow from operations was EUR 322 million (EUR 608 million), affected by an increase in working capital
• Board of Directors will propose a dividend of EUR 0.30 (EUR 0.24) for the financial year 2022, to be paid in two equal installments

President and CEO Pekka Vauramo:

We ended last year on a positive note, with high organic order and sales growth and profitability at the same strong level seen in the third quarter. The market activity in the fourth quarter was in line with our earlier expectations and was boosted by a few larger orders for Minerals and Metals. Also Aggregates saw growth in equipment orders, thanks to the strong North American market and Europe holding up despite some softening. The services business in the Minerals segment continued to see healthy demand, as metal prices and customers' utilization rates remained high.

Quarterly sales increased 12%, thanks to all segments executing on their backlogs efficiently. The services business growth was 21%, reflecting the high order intake during the previous quarters and the easing of supply chain challenges. Our adjusted EBITA margin remained strong at 14.8%, which is just shy of our target of 15%.

Looking at 2022, we are proud of the progress made across the company, despite the challenging market conditions caused by inflation and supply chain constraints. In addition, we exited the Russian market and had to commence a wind-down of our contracts with Russian customers. The customer activity in the other main markets was high, and we were successful in winning new orders, with several of them including a significant amount of Planet Positive products and technologies. The services business saw strong development with 25% sales growth. The impact of active cost and inflation management and other internal efficiency actions became more visible during the second half of the year and resulted in a significant profitability improvement.

The importance of sustainability in our customer industries continues to grow, and we have made progress in both our own footprint and in helping our customers to meet their targets. Sales of Planet Positive products increased 51% to EUR 1.3 billion in 2022. New Planet Positive orders included, for example, technologies for battery metals processing plants to support the global energy transition and electrification. We launched close to 30 new Planet Positive products in 2022, including Geminex™, a digital solution that simulates customers’ processes safely and enables a reduced carbon footprint and more efficient use of resources. In our own footprint, we completed several energy efficiency and CO2 savings projects that are bringing us closer to our net-zero target. We were also successful in developing our culture and saw both Employee Net Promoter Score (eNPS) and inclusion score improvement throughout the year.

For the first half of 2023, we expect customer activity to remain at the current level, thanks to the megatrends relating to electrification and battery metals driving the demand in the minerals and metals markets. We also expect, the aggregates markets to hold up well in North America and Europe. While this outlook is dependent on the development of the global economy, I am confident that Metso Outotec is in a strong position to serve its customers and generate value to all its stakeholders in 2023. Finally, I want to say thank you to all the Metso Outotec people for their hard work and commitment and to our customers for the good cooperation during 2022.

Market outlook

According to its disclosure policy, Metso Outotec’s market outlook describes the expected sequential development of market activity during the following six-month period using three categories: improve, remain at the current level, or decline.

Metso Outotec has changed its outlook and expects the overall market activity to remain at the current level in both the mining and aggregates markets.

In its previously published outlook Metso Outotec expected the overall market activity to remain at the current level, with the mining market remaining strong and the aggregates market declining due to the expected softening of the European market.

Key figures

*A EUR 150 million non-recurring charge related to Russia was booked in Q2/22.
 

Audiocast and conference call details

Metso Outotec’s President and CEO Pekka Vauramo and CFO Eeva Sipilä will present the results in an audiocast and a conference call for analysts and investors today at 1:00 p.m. EET. 

The audiocast can be followedat the company’s website. A recording and a transcript will be available at the same webpage after the event has finished. 

The teleconference can be accessed by registering on the link below.

http://palvelu.flik.fi/teleconference/?id=10010565

The complete Financial Statements Review is available as an attachment to this release.
 

Further information, please contact:  

Juha Rouhiainen, VP, Investor Relations, Metso Outotec Corporation, tel. +358 20 4843253, email: juha.rouhiainen(a)mogroup.com 

Metso Outotec Corporation 

Eeva Sipilä 

CFO 

Juha Rouhiainen 

VP, Investor Relations

Distribution:

Nasdaq Helsinki Ltd

Main media

www.mogroup.com

Metso Outotec is a frontrunner in providing sustainable technologies, end-to-end solutions and services for the aggregates, minerals processing and metals refining industries globally. By helping our customers increase their productivity, improve their energy and water efficiency and environmental performance with our process and product expertise, we are the partner for positive change. Headquartered in Helsinki, Finland, Metso Outotec employs over 16,000 people in close to 50 countries and sales for 2022 were about EUR 5.3 billion. The company is listed on the Nasdaq Helsinki. mogroup.com, twitter.com/metsooutotec