Metso Corp. Stock Exchange Release July 1, 2004 at 8.30 a.m.
METSO'S DYNAPAC GROUP SALE HAS BEEN CLOSED
Following the approval of the necessary competition authorities Metso
Corporation has completed the divestment of its compaction and paving
equipment group, Dynapac, to the Nordic private equity investor Altor.
The purchase price was paid and Dynapac was transferred to the buyer
on June 30, 2004. The debtfree divestment value is estimated to be EUR
283 million. Metso and Altor reached an agreement of the sale in April
The divestment has a significant positive effect on Metso's gearing,
which will decrease approximately 27 percentage points. Following the
divestiture the value of goodwill and other intangible assets on
Metso's balance sheet will decrease by approximately EUR 130 million.
The divestment of Dynapac is a part of Metso's strategy to focus on
serving pulp and paper industry, rock and minerals processing and
process automation customers. Dynapac, which was a part of Metso
Minerals, does not have customer based synergies with other businesses
within the business area.
Metso Corporation is a global supplier of process industry machinery
and systems, as well as know-how and aftermarket services. The
Corporation's core businesses are fiber and paper technology (Metso
Paper), rock and mineral processing (Metso Minerals) and automation
and control technology (Metso Automation). In 2003, the net sales of
Metso Corporation were EUR 4.3 billion. Metso has approximately 26,000
employees in 50 countries. Metso Corporation is listed on the Helsinki
and New York Stock Exchanges.
For further information please contact:
Jorma Eloranta, President and CEO, Metso Corporation, tel. +358 204 84
Eeva Mäkelä, Vice President, Investor Relations, Metso Corporation,
tel. +358 204 84 3253
It should be noted that certain statements herein which are not
historical facts, including, without limitation, those regarding
expectations for general economic development and the market
situation, expectations for customer industry profitability and
investment willingness, expectations for company growth, development
and profitability and the realization of synergy benefits and cost
savings, and statements preceded by "expects", "estimates",
"forecasts" or similar expressions, are forward-looking statements.
These statements are based on current decisions and plans and
currently known factors. They involve risks and uncertainties which
may cause the actual results to materially differ from the results
currently expected by the company.
Such factors include, but are not limited to:
(1) general economic conditions, including fluctuations in exchange
rates and interest levels which influence the operating environment
and profitability of customers and thereby the orders received by the
company and their margins
(2) the competitive situation, especially significant technological
solutions developed by competitors
(3) the company's own operating conditions, such as the success of
production, product development and project management and their
continuous development and improvement
(4) the success of pending and future acquisitions and restructuring.
Olli Vaartimo Helena Aatinen
Executive Vice President and CFO Senior Vice President
New York Stock Exchange
Metso is a world-leading industrial company offering equipment and services for the sustainable processing and flow of natural resources in the mining, aggregates, recycling and process industries. With our unique knowledge and innovative solutions, we help our customers improve their operational efficiency, reduce risks and increase profitability. Metso employs over 14,000 people in more than 50 countries.