Segment information for 2021 has been restated to reflect the segment structure changes that were announced in
Figures in brackets refer to the corresponding period in 2021, unless otherwise stated.
Second-quarter 2022 in brief
- Strong market activity for mining equipment and services in particular
-
Orders received increased 18% to
EUR 1,610 million (EUR 1,360 million ) -
Sales grew 28% to
EUR 1,295 million (EUR 1,010 million ) -
Adjusted EBITA increased to
EUR 155 million , or 12.0% of sales (EUR 131 million , or 12.9%); volatility in currencies negatively impacted adjusted EBITA by aroundEUR 34 million (0 million) -
Operating profit was
EUR -13 million , or -1.0% of sales (EUR 97 million , or 9.6%), due toEUR 150 million non-recurring charge related to the wind-down of business inRussia - Cash flow from operations was
EUR 15 million (EUR 107 million ), affected by increase in net working capital
January-
- Orders received increased 23% to
EUR 3,034 million (EUR 2,462 million ) -
Sales grew 27% to
EUR 2,459 million (EUR 1,935 million ) -
Adjusted EBITA increased to
EUR 312 million , or 12.7% of sales (EUR 245 million , or 12.7%) -
Operating profit was
EUR 127 million , or 5.1% of sales (EUR 188 million , or 9.7%), includingEUR 150 million non-recurring charge related to the wind-down of the business inRussia -
Earnings per share were
EUR 0.08 (EUR 0.15 ) -
Cash flow from operations was
EUR 89 million (EUR 272 million )
President and CEO
We delivered a strong order intake and healthy underlying results in the second quarter. The quarter included some unusual elements, mainly related to the wind-down of our business in
Our orders increased 11% year-on-year in constant currencies, thanks to the strong activity and demand in the mining markets as well as our strong position and Planet Positive product offering. Orders received in the Minerals segment grew 40% in constant currencies, with strong growth in both equipment and services orders. Orders in the Aggregates segment were flat year-on-year, despite softening of the European markets, and the Metals segment reported somewhat low order intake due to the timing of customers investments.
Our sales growth of 21% in constant currencies was supported by the backlog built during the previous quarters, and both equipment and services reported double-digit growth rates.
Our underlying performance was healthy, although still somewhat under pressure due to high raw material, component, logistics and energy costs. This pressure is most visible in our consumables business, where the mitigation actions continue. Unusually high volatility in the currency market had a
We continued to make good progress in sustainability during the quarter. We completed a number of actions that will result in emission reductions of our own operations. Our Planet Positive product portfolio was expanded with several launches of new products, for example, for real-time monitoring of crushers and screens and sustainable tailings management. We received a significant order for a comminution circuit flowsheet developed for a new concentrator plant, which represents the most sustainable technology currently available and features a combination of HRC(TM)e high-pressure grinding rolls (HPGR) and Vertimill® grinding mills that help to achieve the best energy-efficiency with the lowest operating and life cycle costs. In addition, we took an important step in linking our overall strategy implementation to financing by publishing a Sustainability-Linked Finance Framework, which specifies several performance indicators measuring our own, our suppliers' and our customers' emission reductions as an input to our future financing instruments.
Looking ahead, we see strong activity continuing in the mining markets during the second half of the year despite the metal prices recently trending down from very high levels. Following the expected softening of the overall economy due to inflation and the continuing war in
At the end of
Market outlook
According to its disclosure policy,
Key figures
EUR million | Q2/2022 | Q2/2021 | Change % | Q1-Q2/2022 | Q1-Q2/2021 | Change % | 2021 |
Orders received | 1,610 | 1,360 | 18 | 3,034 | 2,462 | 23 | 5,421 |
Orders received by services business | 752 | 594 | 27 | 1,464 | 1,167 | 25 | 2,393 |
% of orders received | 47 | 44 | - | 48 | 47 | - | 44 |
Order backlog | 3,756 | 2,876 | 31 | 3,536 | |||
Sales | 1,295 | 1,010 | 28 | 2,459 | 1,935 | 27 | 4,236 |
Sales by services business | 616 | 527 | 17 | 1,167 | 1,021 | 14 | 2,126 |
% of sales | 48 | 52 | - | 47 | 53 | - | 50 |
Adjusted EBITA | 155 | 131 | 19 | 312 | 245 | 27 | 547 |
% of sales | 12.0 | 12.9 | - | 12.7 | 12.7 | - | 12.9 |
Operating profit* | -13 | 97 | -113 | 127 | 188 | -33 | 425 |
% of sales | -1.0 | 9.6 | - | 5.1 | 9.7 | - | 10.0 |
Earnings per share, continuing operations, EUR | -0.02 | 0.07 | 0.08 | 0.15 | 0.35 | ||
Cash flow from operations | 15 | 107 | -86 | 89 | 272 | -67 | 608 |
Gearing, % | 28.5 | 33.5 | - | 28.5 | 33.5 | - | 20.9 |
Personnel at end of period | 15,992 | 15,681 | 2 | 15,630 |
*
Audiocast and conference call details
President and CEO
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Eeva Sipilä
CFO
Juha Rouhiainen
VP, Investor Relations
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