Outotec's interim report January-September 2017
OUTOTEC OYJ INTERIM REPORT NOVEMBER 2, 2017 AT 9:00 AM
INTERIM REPORT JANUARY - SEPTEMBER 2017
Sales and profitability improved, recovery of Metals, Energy & Water still pending
"The minerals and metals processing market is slowly improving. Our order intake in the reporting period increased by 16% and service orders by 10% from last year. The third quarter order intake, however, was lower than last year due to the timing of larger orders. Smaller equipment and service orders continued to increase. Our total sales and service sales increased year on year. In the third quarter, sales grew by 10% and service sales by 13%. Our profitability improved significantly, due to increased sales and reduced fixed costs.
Minerals Processing improved its sales and profitability, and the segment's adjusted EBIT margin reached 10.4% in the third quarter. The Metals, Energy & Water result improved but remained negative. We are continuing to take action to make this segment profitable again. We recently announced our plans to outsource part of the segment's engineering activities, which will bring workforce flexibility.
The demand for most metals is expected to continue strong, and we see many attractive business opportunities. We will continue to further strengthen our capabilities in serving our customers and our large installed base. The timing of large plant orders is, however, still difficult to foresee," summarizes President & CEO Markku Teräsvasara.
| Summary of key figures | Q3 | Q3 | Q1-Q3 | Q1-Q3 | Q1-Q4 | ||||
| EUR million | 2017 | 2016 | %1 | %2 | 2017 | 2016 | %1 | %2 | 2016 |
| Order intake | 234.2 | 274.1 | -15 | -15 | 838.8 | 725.0 | 16 | 13 | 1,007.7 |
| Service order intake | 123.5 | 121.4 | 2 | 3 | 369.4 | 335.5 | 10 | 7 | 443.3 |
| Order backlog at end of period | 973.7 | 1,029.7 | -5 | - | 973.7 | 1,029.7 | -5 | - | 1,002.1 |
| Sales | 270.4 | 245.2 | 10 | 12 | 810.3 | 752.5 | 8 | 6 | 1,057.9 |
| Service sales | 119.5 | 105.3 | 13 | 14 | 329.2 | 319.6 | 3 | 0 | 447.0 |
| Gross margin, % | 24.0 | 23.5 | 23.3 | 24.7 | 22.1 | ||||
| Adjusted EBIT3 | 12.6 | 1.6 | 16.1 | 1.7 | -23.0 | ||||
| Adjusted EBIT3, % | 4.7 | 0.7 | 2.0 | 0.2 | -2.2 | ||||
| EBIT | 10.6 | -1.2 | 10.6 | -14.3 | -67.7 | ||||
| EBIT, % | 3.9 | -0.5 | 1.3 | -1.9 | -6.4 | ||||
| Net cash from operating activities | 27.2 | -23.1 | -7.3 | -72.7 | -84.6 | ||||
| Earnings per share, EUR | 0.02 | -0.03 | -0.02 | -0.12 | -0.42 |
1 Change, %
2 Change in comparable currencies, %
3 Excluding restructuring and acquisition-related items and PPA amortizations.
Financial guidance for 2017 reiterated
The guidance for 2017 is based on the current order backlog and market outlook as well as further cost savings.
- Sales are expected to be approximately EUR 1,100 - 1,200 million, and
- Adjusted EBIT* is expected to be approximately 3 - 4%
* Excluding restructuring and acquisition-related items, as well as purchase price allocation amortizations.
This text is a summary of Outotec's January-September 2017 Interim report. The full report is available as an attachment to this report.
FURTHER INFORMATION
Outotec Oyj
Markku Teräsvasara, CEO
Tel. +358 20 529 2000
Jari Ålgars, CFO
Tel. +358 20 529 2007
Rita Uotila, Vice President - Investor Relations
Tel. +358 20 529 2003, mobile +358 400 954 141
Format for e-mail addresses: firstname.lastname@outotec.com
BRIEFING/TELECONFERENCE
Date: November 2, 2017
Time: 2:00 PM EET
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