Business News
Metso Capital Markets Day 2008
Tuesday 02. September 2008 - Metso is arranging a Capital Markets Day (CMD) event for analysts and investors in Helsinki and Tampere, Finland on September 2 and 3, 2008. The event focuses on Metsos profitable growth strategy for 2008-2012. In addition to updates of Metso businesses, the construction business will be discussed in more detail.
All Capital Markets Day presentations are available on the Internet at www.metso.com. Todays seminar program will be available at www.metso.com and all the presentations can be followed live through a webcast at the same site.
“We continue to focus on sustainable profitable growth through 2012. Many global megatrends are supporting this and we continue to see a lot of improvement potential in all our business,” says Jorma Eloranta, President and CEO of Metso Corporation. “At the CMD we concentrate on giving longer-term view on Metso, our business environment and opportunities in line with our strategys four-year perspective. Despite the current uncertainties in world economy we are ready to raise our ambition level. We continue our efforts to make our business and earnings sustainable and less vulnerable to business cycles. In a more near-term perspective and based on the recent large orders, we expect the order backlog at the end of the third quarter to be strong, and thus providing solid outlook for 2009,” says Eloranta.
In explaining the new, long-term financial targets for 2009-2012 Metsos CFO Olli Vaartimo comments: “We are targeting growth of over 10% in our mining and construction businesses as well as in the energy and environment businesses. The growth in our paper and fiber businesses is expected to come mainly from the services, and to be below 10%. We expect growth of services to be an important driver in all businesses. We estimate services eventually to represent about 40% of our net sales compared to 35% currently. Emerging markets are also an important growth driver for us representing in the future about 50% of our new orders. The new EBITA margin target of >12% means about 1.5 percentage points upgrade on the previous >10% EBIT margin target. All our businesses are expected to contribute to the profitability improvement. In Mining and Construction Technology reporting segment as well as in Energy and Environment Technology profitability is expected to be primarily linked to volume leverage and increased share of the services business. In Paper and Fiber Technology we continue to target overall profitability improvement; coming both from capital equipment business and from increased share of the services business,” says Vaartimo.
The following presents the historical pro forma financials of Metsos new reporting segments Mining and Construction Technology, Energy and Environment Technology and Paper and Fiber Technology.