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2016-02-09

Valmet's Financial Statements Review, January 1 - December 31, 2015: Net sales increased to EUR 2.9 billion and EBITA to EUR 182 million in 2015

Valmet Corporation's stock exchange release on February 9, 2016 at 12:00 noon
EET
Figures in brackets, unless otherwise stated, refer to the comparison period,
i.e. the same period of the previous year. Automation has been consolidated
into Valmet's financials since April 1, 2015, when the acquisition of
Automation was completed.

October-December 2015: EBITA margin in the targeted range

* Orders received increased to EUR 793 million (EUR 480 million). * Orders
received increased in the Pulp and Energy, and Paper business lines and
remained at the previous year's level in the Services business line. *
Automation contributed to orders received with EUR 67 million. * Orders
received tripled in China.
* Net sales increased to EUR 854 million (EUR 777 million). * Net sales
increased in the Services, and Paper business lines and decreased in the
Pulp and Energy business line. * Automation contributed to net sales with
EUR 95 million.
* Earnings before interest, taxes and amortization (EBITA) and non-recurring
items were EUR 63 million (EUR 48 million), and the corresponding EBITA
margin was 7.3 percent (6.1%). * Profitability improved due to increased
net sales in Services and Paper business lines, improved gross profit, and
the acquisition of Automation.
* Earnings per share were EUR 0.18 (EUR 0.17).
* Non-recurring items amounted to EUR -10 million (EUR -5 million), of which
EUR -5 million impairment related to fixed assets.
* Cash flow provided by operating activities was EUR 64 million (EUR 30
million).

January-December 2015: Profitability in the targeted range

* Orders received decreased to EUR 2,878 million (EUR 3,071 million). *
Orders received increased in the Services business line, remained at the
previous year's level in the Paper business line, and decreased in the Pulp
and Energy business line. * Automation contributed to orders received with
EUR 222 million. * Orders received increased in China and North America.
* Net sales increased to EUR 2,928 million (EUR 2,473 million). * Net sales
increased in the Paper, and Services business lines and remained at the
previous year's level in the Pulp and Energy business line. * Automation
contributed to net sales with EUR 229 million.
* Earnings before interest, taxes and amortization (EBITA) and non-recurring
items were EUR 182 million (EUR 106 million), and the corresponding EBITA
margin was 6.2 percent (4.3%). * Profitability improved due to increased
net sales in Services and Paper business lines, improved gross profit, and
the acquisition of Automation. * Earnings per share were EUR 0.51 (EUR
0.31). * Non-recurring items amounted to EUR -26 million (EUR -12 million),
of which EUR -14 million related to the acquisition of Automation and EUR
-5 million to impairment of fixed assets.
* Cash flow provided by operating activities was EUR 78 million (EUR 236
million).

Dividend proposal

The Board of Directors proposes for the Annual General Meeting that a dividend
of EUR 0.35 per share be paid. The proposed dividend equals to 68 percent of
the net result.

Guidance for 2016

Valmet estimates that net sales in 2016 will remain at the same level with
2015 (EUR 2,928 million) and EBITA before non-recurring items in 2016 will
increase in comparison with 2015 (EUR 182 million).

Short-term outlook

General economic outlook

Global growth, currently estimated at 3.1 percent in 2015, is projected at 3.4
percent in 2016 and 3.6 percent in 2017. The pickup in global activity is
projected to be more gradual than in the October 2015 World Economic Outlook
(WEO), especially in emerging market and developing economies. In advanced
economies, a modest and uneven recovery is expected to continue, with a
gradual further narrowing of output gaps. The picture for emerging market and
developing economies is diverse but in many cases challenging. The slowdown
and rebalancing of the Chinese economy, lower commodity prices, and strains
in some large emerging market economies will continue to weigh on growth
prospects in 2016-17. (International Monetary Fund, January 19, 2016)

Short-term market outlook

Valmet estimates that the short-term market outlook has improved for Board and
Paper to good level (previously satisfactory level) and for Energy to
satisfactory level (previously weak level). Valmet also estimates that the
short-term market outlook for Pulp has decreased to satisfactory level
(previously good level).

Valmet reiterates the satisfactory short-term market outlook for services,
automation, and tissue.

President and CEO Pasi Laine: Acquisition of Automation and profitability
improvement the main successes of 2015

The year 2015, Valmet's second year as an independent company, was successful
in many ways. We acquired and integrated the Automation business, we were
able to improve profitability and to reach our targeted profitability range
for the full year, and we retained our position among the world's
sustainability leaders for the second consecutive year. The role of our
stable business, meaning services and automation, has increased, which offers
us resilience and visibility. We succeeded in strengthening our position in
the paper industry, and we are now the market leader in paper, board and
tissue technologies.

One of the highlights of the year was the acquisition of Automation. With our
unique offering, we are now capable of serving our customers better than ever
and move our customers' performance forward. Having process technology,
automation and services within the same company clearly differentiates us
from our competitors.

The acquisition of Automation has also strengthened Valmet's position as the
forerunner in Industrial Internet. This plays an important role in enhancing
our leadership in technology and innovation. Another key element is our
renewal capability. Going forward, the focus areas of our research and
development work are to ensure advanced and competitive technologies and
services, to enhance raw material, water and energy efficiency, and to
promote renewable materials.

For the last couple of years, we have worked very hard to reach our
profitability target. I am very pleased to see that Valmet's profitability in
2015 reached the targeted level. Every Valmet employee around the world has
made a valuable contribution to this. The significant improvement in
profitability over a rather short time has required a lot of team work,
commitment and determination.

Key figures
*

--------------------------------------------------------------------------------------------------------------------------------
| EUR million Q4/2015 Q4/2014 Change 2015 2014 Change |
| Orders received 793 480 65% 2,878 3,071 -6% |
| Order backlog** 2,074 1,998 4% 2,074 1,998 4% |
| Net sales 854 777 10% 2,928 2,473 18% |
| Earnings before interest, taxes and amortization (EBITA) and non-recurring 63 48 31% 182 106 73% |
|items |
| % of net sales 7.3% 6.1% 6.2% 4.3% |
| Earnings before interest, taxes and amortization (EBITA) 52 43 22% 157 94 67% |
| % of net sales 6.1% 5.5% 5.3% 3.8% |
| Operating profit (EBIT) 41 38 11% 120 72 65% |
| % of net sales 4.9% 4.8% 4.1% 2.9% |
| Profit before taxes 37 36 2% 108 67 61% |
| Profit / loss 28 25 10% 78 46 69% |
| Earnings per share, EUR 0.18 0.17 9% 0.51 0.31 67% |
| Earnings per share, diluted, EUR 0.18 0.17 9% 0.51 0.31 67% |
| Equity per share**, EUR 5.70 5.36 6% 5.70 5.36 6% |
| Dividend per share, EUR 0.35*** 0.25 40% |
| Cash flow provided by operating activities 64 30 >100% 78 236 -67% |
| Cash flow after investments 51 15 >100% -287 194 |
| Return on equity (ROE) 9% 6% |
| Return on capital employed (ROCE) before taxes 12% 9% |
--------------------------------------------------------------------------------------------------------------------------------
* The calculation of key figures is presented in the Tables section of the
Financial Statements Review 2015.

** At the end of period.
*** Board of Directors' proposal.

---------------------------------------------------------------------------------------------------------
| Equity to assets ratio and gearing As at December 31, 2015 As at December As at September |
| |
| 31, 2014 30, 2015 |
| Equity to assets ratio at end of period 36% 42% 35% |
| Gearing at end of period 21% -21% 28% |
---------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Orders received, EUR million Q4/2015 Q4/2014 Change 2015 2014 Change |
| Services 267 273 -2% 1,119 1,055 6% |
| Automation 67 - - 222 - - |
| Pulp and Energy 261 66 >100% 864 1,344 -36% |
| Paper 199 142 40% 673 671 0% |
| Total 793 ...

Författare WKR

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