Bli medlem
Bli medlem

Du är här

2017-02-08

Valmet's Financial Statements Review January 1 - December 31, 2016: Orders received increased to EUR 3.1 billion and Comparable EBITA to EUR 196 million in 2016

Valmet Oyj's financial statement release on February 8, 2017 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 2016:
Orders received increased in the Paper, Automation and Services business lines

* Orders received increased to EUR 857 million (EUR 793 million). * Orders
received increased in the Paper, Automation and Services business lines and
decreased in the Pulp and Energy business line. * Orders received increased
in Asia-Pacific, China and North America, remained at the previous year's
level in South America and decreased in EMEA (Europe, Middle East and
Africa).
* Net sales decreased to EUR 785 million (EUR 854 million). * Net sales
remained at the previous year's level in the Services and Automation
business lines and decreased in the Pulp and Energy and Paper business
lines.
* Comparable earnings before interest, taxes and amortization (Comparable
EBITA) were EUR 56 million (EUR 63 million) and the corresponding
Comparable EBITA margin was 7.2 percent (7.3%). * Profitability decreased
due to a loss of EUR 17 million incurred in a pulp mill rebuild project.
* Earnings per share were EUR 0.10 (EUR 0.18).
* Items affecting comparability amounted to EUR -8 million (EUR -10 million).

* Cash flow provided by operating activities was EUR 88 million (EUR 64
million).

January-December 2016: Orders received increased and profitability improved

* Orders received increased to EUR 3,139 million (EUR 2,878 million). *
Orders received increased in the Pulp and Energy, Paper and Services
business lines. * The Automation business line contributed to orders
received with EUR 299 million. * Orders received increased in Asia-Pacific,
South America and EMEA and decreased in China and North America.
* Net sales remained at the previous year's level at EUR 2,926 million (EUR
2,928 million). * Net sales remained at the previous year's level in the
Services and Paper business lines and decreased in the Pulp and Energy
business line. * The Automation business line contributed to net sales with
EUR 290 million.
* Comparable earnings before interest, taxes and amortization (Comparable
EBITA) were EUR 196 million (EUR 182 million) and the corresponding
Comparable EBITA margin was 6.7 percent (6.2%). * Profitability improved
due to improved gross profit and the acquisition of Automation and
decreased due to a loss of EUR 17 million incurred in a pulp mill rebuild
project.
* Earnings per share were EUR 0.55 (EUR 0.51).
* Items affecting comparability amounted to EUR -13 million (EUR -26
million).
* Cash flow provided by operating activities was EUR 246 million (EUR 78
million).

Dividend proposal

The Board of Directors proposes for the Annual General Meeting that a dividend
of EUR 0.42 per share be paid. The proposed dividend equals to 76 percent of
the net result.

Guidance for 2017

Valmet estimates that net sales in 2017 will remain at the same level as in
2016 (EUR 2,926 million) and Comparable EBITA in 2017 will increase in
comparison with 2016 (EUR 196 million).

Short-term outlook

General economic outlook

After a lackluster outturn in 2016, economic activity is projected to pick up
pace in 2017 and 2018, especially in emerging market and developing
economies. However, there is a wide dispersion of possible outcomes around
the projections, given uncertainty surrounding the policy stance of the
incoming U.S. administration and its global ramifications. (International
Monetary Fund, January 16, 2017)

Short-term market outlook

Valmet estimates that the short-term market outlook has increased to a good
level in board and paper (previously satisfactory level).
Valmet reiterates the good short-term market outlook in tissue and energy as
well as the satisfactory short-term market outlook for services, automation
and pulp.

President and CEO Pasi Laine:
Increase in orders received and higher order backlog enable further
improvement

Orders received increased 9 percent in 2016 supported by all business lines.
Stable business, i.e. the Services and Automation business lines, accounted
for about EUR 1.5 billion or 47 percent of all orders. During 2016, we were
able to increase orders received in both stable and capital business. In
capital business, the development was strong especially in Energy and Tissue.
Our order backlog developed well during the year, which gives us a good
starting point when moving into 2017.

In 2016, we also made good progress in improving profitability: Comparable
EBITA margin increased to 6.7 percent from 6.2 percent in 2015. Although we
reached our target range of 6-9 percent, our objective is to improve
profitability even further. The long-term margin target from 2017 onwards is
8-10 percent, so there is still a lot of work to be done to reach our new
goal.

During the last couple of years, we have put a lot of focus on our stable
business. In 2016 we introduced the new Valmet Way to Serve -concept, and we
have been able to grow both the Services and Automation businesses. Our new
financial targets make sure that the development of stable business will be
given emphasis also going forward.

Key figures
1

----------------------------------------------------------------------------------------------------------------------------------
| EUR million Q4/2016 Q4/2015 Change 2016 2015 Change |
| Orders received 857 793 8% 3,139 2,878 9% |
| Order backlog2 2,283 2,074 10% 2,283 2,074 10% |
| Net sales 785 854 -8% 2,926 2,928 0% |
| Comparable earnings before interest, taxes and amortization (Comparable EBITA) 56 63 -10% 196 182 7% |
| % of net sales 7.2% 7.3% 6.7% 6.2% |
| Earnings before interest, taxes and amortization (EBITA) 48 52 -8% 183 157 17% |
| % of net sales 6.1% 6.1% 6.2% 5.3% |
| Operating profit (EBIT) 40 41 -3% 147 120 23% |
| % of net sales 5.1% 4.9% 5.0% 4.1% |
| Profit before taxes 38 37 3% 136 108 26% |
| Profit / loss 14 28 -50% 82 78 6% |
| Earnings per share, EUR 0.10 0.18 -48% 0.55 0.51 7% |
| Earnings per share, diluted, EUR 0.10 0.18 -48% 0.55 0.51 7% |
| Equity per share, EUR 5.88 5.70 3% 5.88 5.70 3% |
| Cash flow provided by operating activities 88 64 38% 246 78 >100% |
| Cash flow after investments 72 51 42% 188 -287 |
| Return on equity (ROE) (annualized) 9% 9% |
| Return on capital employed (ROCE) before taxes (annualized) 12% 12% |
----------------------------------------------------------------------------------------------------------------------------------
1
The calculation of key figures is presented on page 39.
2
At the end of period.

---------------------------------------------------------------------------------------------------------
| Equity to assets ratio and gearing As at December As at December As at September 30, 2016 |
| |
| 31, 2016 31, 2015 |
| Equity to assets ratio at end of period 37% 36% 38% |
| Gearing at end of period 6% 21% 15% |
---------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Orders received, EUR million Q4/2016 Q4/2015 Change 2016 2015 Change |
| Services 284 267 6% 1,182 1,119 6% |
| Automation 78 67 18% 299 222 - |
| Pulp and Energy 247 261 -5% 939 864 9% |
| Paper 246 199 24% 718 673 7% |
| Total 857 793 8% 3,139 2,878 9% |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------
| Order backlog, EUR million As at December As at December Change As at September 30, 2016 |
| |
| 31, 2016 31, 2015 |
| Total 2,283 2,074 10% 2,192 |
--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------
| Net sales, EUR million Q4/2016 Q4/2015 Change 2016 2015 Change |
| Services 316 314 1% 1,163 1,128 3% |
| Automation 94 95 -1% 290 229 - |
| Pulp and Energy 187 245 -24% 826 913 -9% |
| Paper 188 200 -6% 647 659 -2% |
| Total 785 854 -8% 2,926 2,928 0% |
--------------------------------------------------------------------------
News conference and webcast for analysts, investors and media

Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.