Valmet's Interim Review
Figures in brackets, unless otherwise stated, refer to the comparison period, i.e. the same period of the previous year.
July-
· Orders received decreased 34 percent to
· Orders received increased in the Paper business line, and decreased in the Pulp and Energy, Automation and Services business lines.
· Orders received increased in
· Net sales remained at the previous year's level and amounted to
· Net sales increased in the Paper business line, remained at the previous year's level in the Automation business line, and decreased in the Pulp and Energy, and Services business lines.
· Comparable earnings before interest, taxes and amortization (Comparable EBITA) were EUR 91 million (
· Comparable EBITA increased due to lower selling, general and administration (SG&A) expenses.
· Earnings per share were
· Items affecting comparability amounted to
· Cash flow provided by operating activities was
January-
· Orders received decreased 9 percent to
· Orders received remained at the previous year's level in the Paper and Services business lines, and decreased in the Pulp and Energy, and Automation business lines.
· Orders received increased in
· Net sales increased 5 percent to
· Net sales increased in the Pulp and Energy, and Paper business lines, remained at the previous year's level in the Automation business line, and decreased in the Services business line.
· Comparable earnings before interest, taxes and amortization (Comparable EBITA) were EUR 218 million (
· Comparable EBITA increased due to higher net sales and as SG&A expenses did not increase.
· Earnings per share were
· Items affecting comparability amounted to
· Cash flow provided by operating activities was
Guidance for 2020 unchanged
Valmet reiterates its guidance issued on
Short-term market outlook
Valmet reiterates the good short-term market outlook for pulp, and board and paper, the good/satisfactory short-term market outlook for automation, the satisfactory short-term market outlook for energy, and tissue and the satisfactory/weak short-term market outlook for services.
President and CEO
"Valmet's orders received amounted to
Valmet's net sales remained at the previous year's level, and the Comparable EBITA increased to
The COVID-19 pandemic continued to impact our operations in the third quarter. Travel restrictions and lower capacity utilization in graphical paper mills had a negative impact on Services order intake and net sales. Despite COVID-19, Automation services order intake remained at the previous year's level, while capital order intake in Automation decreased. COVID-19 has not caused major impacts on Valmet's capital business. Our whole organization has performed well under the new circumstances and found new ways to operate, which can be utilized to improve Valmet's processes also after the pandemic. Furthermore, certain expenses were lower due to the pandemic.
In the beginning of July, Valmet acquired 14.9 percent of
During the quarter, we entered into an agreement to acquire
Key figures[1]
[][][][]
EUR million Q3/2020 Q3/2019 Change Q1-Q3/ Q1-Q3/ Change
2020 2019
Orders received 700 1,058 -34 % 2,712 2,976 -9 %
Order backlog[2] 3,311 3,425 -3 % 3,311 3,425 -3 %
Net sales 832 857 -3 % 2,573 2,444 5 %
Comparable 91 81 11 % 218 198 10 %
earnings before
interest,
taxes and
amortization
(Comparable
EBITA)
% of net sales 10.9 % 9.5 % 8.5 % 8.1 %
Earnings before 87 83 5 % 208 196 6 %
interest, taxes
and
amortization
(EBITA)
% of net sales 10.5 % 9.7 % 8.1 % 8.0 %
Operating profit 79 73 9 % 184 172 7 %
(EBIT)
% of net sales 9.5 % 8.5 % 7.1 % 7.0 %
Profit before 75 70 6 % 174 164 6 %
taxes
Profit for the 57 51 12 % 131 121 9 %
period
Earnings per 0.38 0.34 12 % 0.88 0.80 9 %
share, EUR
Earnings per 0.38 0.34 12 % 0.88 0.80 9 %
share, diluted,
EUR
Equity per share, 6.81 6.13 11 % 6.81 6.13 11 %
EUR[2 ]
Cash flow provided 94 126 -25 % 418 113 >100%
by operating
activities
Cash flow after -380 102 -100 -102 -2 %
investments
Return on equity 17 % 17 %
(ROE) (annualized)
Return on capital 17 % 19 %
employed (ROCE)
before taxes
(annualized)
Equity to assets 38 % 38 %
ratio[2]
Gearing[2] 18 % 6 %
1. The calculation of key figures is presented on page 44.
2. At end of period.
Orders Q3/2020 Q3/2019 Change Q1-Q3/ Q1-Q3/ Change
received, EUR 2020 2019
million
Services 288 335 -14 % 1,014 1,064 -5 %
Automation 65 86 -25 % 238 263 -10 %
Pulp and 52 395 -87 % 643 805 -20 %
Energy
Paper 295 243 22 % 818 844 -3 %
Total 700 1,058 -34 % 2,712 2,976 -9 %
Order As at As at Change As at
backlog, EUR
million
Total 3,311 3,425 -3 % 3,492
Net sales, EUR million Q3/2020 Q3/2019 Change Q1-Q3/ Q1-Q3/ Change
2020 2019
Services 307 336 -9 % 924 973 -5 %
Automation 72 75 -4 % 218 221 -1 %
Pulp and Energy 211 231 -9 % 717 604 19 %
Paper 242 214 13 % 713 646 10 %
Total 832 857 -3 % 2,573 2,444 5 %
News conference and webcast for analysts, investors and media
Valmet will arrange a news conference in English as a live webcast at https://valmet.videosync.fi/2020-q3 on
Recording of the webcast will be available shortly after the event at the same address.
It is possible to take part in the news conference through a conference call. Conference call participants are requested to dial in at least five minutes prior to the start of the conference at
The participants will be asked to provide the following conference PIN: 25170683#. All questions should be presented in English.
The event can also be followed on Twitter at www.twitter.com/valmetir
Due to COVID-19 pandemic, the news conference cannot be attended on the spot.
Further information, please contact:
VALMET
CFO
Director, Investor Relations
Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.
Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.
Valmet's net sales in 2019 were approximately
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