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 17 percent to
- Orders received decreased in all three segments.
- Orders received increased in
** Net sales remained at the previous year's level and amounted to
- Net sales increased in the Services and Automation segments and decreased in the Process Technologies segment.
** Comparable earnings before interest, taxes and amortization (Comparable EBITA) increased 11 percent to
- Comparable EBITA increased in the Services and Automation segments and decreased in the Process Technologies segment.
** Comparable EBITA margin was 11.6 percent (10.5%).
** Earnings per share (EPS) were
** Items affecting comparability amounted to
** Cash flow provided by operating activities totaled
January-
** Orders received remained at the previous year's level and amounted to
- Orders received increased in the Automation segment, remained at the previous year's level in the Services segment, and decreased in the Process Technologies segment.
- Orders received increased in
** Net sales increased 14 percent to
- Net sales increased in the Automation and Services segments and remained at the previous year's level in the Process Technologies segment.
** Comparable earnings before interest, taxes and amortization (Comparable EBITA) increased 29 percent to
- Comparable EBITA increased in the Services and Automation segments and decreased in the Process Technologies segment.
** Comparable EBITA margin was 10.8 percent (9.5%).
** EPS was
** Items affecting comparability amounted to
** Cash flow provided by operating activities totaled
Guidance for 2023
Valmet reiterates its guidance issued on
Short-term market outlook
Valmet reiterates the good/satisfactory short-term market outlook for services (capacity utilization good, customer activity satisfactory), the good short-term market outlook for flow control, automation systems and energy, and the satisfactory short-term market outlook for pulp, board and paper, and tissue.
The short-term market outlook is given for the next six months from the end of the reported period. It is based on customer activity (50%) and Valmet's capacity utilization (50%), and the scale is 'weak-satisfactory-good'.
President and CEO
"During the first nine months of 2023 Valmet's orders received remained at the previous year's level. Orders increased in Automation, remained at the previous year's level in Services and decreased in Process Technologies. Automation's orders grew well and the market activity was good. In Services, the market activity was at a very good level at the start of the year, and order intake in the first quarter was record breaking. The market activity in Services decreased during the second and third quarter. Even though there are projects in the pipeline and customers are discussing investments, we have seen some delays in project decision schedules in the Process Technologies segment. In the third quarter of 2023 Valmet's orders received amounted to
Orders received in Valmet's stable business totaled
During the third quarter, Valmet's net sales remained at the previous year's level and Comparable EBITA increased. Net sales increased in the Services and Automation segments, and decreased in Process Technologies. Comparable EBITA margin was 18.4% in Services, 18.7% in Automation and 4.5% in Process Technologies. Valmet's Comparable EBITA increased to
Valmet's Climate Program is progressing well. I am very pleased to announce that we have already reached the first target in the program: Valmet can now enable carbon neutral production for all pulp and paper industry customers. We achieved this target well ahead of schedule, as the initial target year was 2030. In addition to this achievement, we're on track with our three other Climate Program goals. By 2030, Valmet aims to enhance the energy efficiency of its existing technology offering by 20%. We are also committed to reducing our own operations' CO₂ emissions by 80% and decreasing our supply chain's CO₂ emissions by 20%.
On
Update on the integration of Flow Control into Valmet
The merger of
Key figures1
EUR million | Q3/2023 | Q3/2022 | Change | Q1-Q3/ |
Q1-Q3/ | Change |
Orders received | 980 | 1,178 | -17 % | 3,801 | 3,809 | 0 % |
Order backlog2 | 4,133 | 4,672 | -12 % | 4,133 | 4,672 | -12 % |
Net sales | 1,295 | 1,288 | 1 % | 4,033 | 3,534 | 14 % |
Comparable EBITA | 150 | 136 | 11 % | 437 | 337 | 29 % |
% of net sales | 11.6 % | 10.5 % |
| 10.8 % | 9.5 % |
|
EBITA | 147 | 132 | 11 % | 433 | 360 | 20 % |
% of net sales | 11.3 % | 10.2 % |
| 10.7 % | 10.2 % |
|
Operating profit (EBIT) | 127 | 97 | 30 % | 359 | 280 | 28 % |
% of net sales | 9.8 % | 7.6% |
| 8.9 % | 7.9 % |
|
Profit before taxes | 120 | 98 | 23 % | 340 | 279 | 22 % |
Profit for the period | 86 | 71 | 21 % | 256 | 217 | 18 % |
Earnings per share, EUR | 0.47 | 0.38 | 21 % | 1.38 | 1.25 | 10 % |
Adjusted earnings per share, EUR | 0.52 | 0.51 | 3 % | 1.63 | 1.56 | 5 % |
Equity per share, | 13.49 | 13.21 | 2 % | 13.49 | 13.21 | 2 % |
Cash flow provided by operating activities | 57 | 115 | -50 % | 229 | 49 | >100% |
Cash flow after investments | 31 | 88 | -65 % | 135 | 100 | 34 % |
Comparable return on capital employed (Comparable ROCE) before taxes (LTM) |
|
|
| 16 % | 16 % |
|
Return on capital employed (ROCE) before taxes (LTM) |
|
|
| 15 % | 17 % |
|
Return on equity (ROE) (LTM) |
|
|
| 15 % | 17 % |
|
Net debt to EBITDA4 ratio3 |
|
|
| 0.74 | 0.71 |
|
Gearing2 |
|
|
| 21 % | 18 % |
|
Equity to assets ratio2 |
|
|
| 46 % | 47 % |
|
1 The calculation of key figures is presented on page 55.
2 At end of period.
3 Net debt to EBITDA ratio is a new alternative performance measure. It enables users of the financial information to prepare more meaningful analysis on Valmet's performance and is presented with comparatives from Q1/2023 onwards.
4 Last twelve months' EBITDA
LTM = Last twelve months
Segment key figures
Orders received, EUR million | Q3/2023 | Q3/2022 | Change | Q1-Q3/ |
Q1-Q3/ | Change |
Services | 349 | 427 | -18% | 1,356 | 1,338 | 1% |
Automation | 289 | 306 | -6% | 1,021 | 758 | 35% |
Flow Control | 185 | 189 | -2% | 613 | 387 | 58% |
Automation Systems | 104 | 117 | -12% | 408 | 371 | 10% |
Process Technologies | 343 | 444 | -23% | 1,424 | 1,713 | -17% |
Pulp and Energy | 138 | 211 | -35% | 626 | 792 | -21% |
Paper | 205 | 233 | -12% | 798 | 921 | -13% |
Total | 980 | 1,178 | -17% | 3,801 | 3,809 | 0% |
Net sales, EUR million | Q3/2023 | Q3/2022 | Change | Q1-Q3/ |
Q1-Q3/ | Change |
Services | 429 | 381 | 13% | 1,275 | 1,101 | 16% |
Automation | 312 | 296 | 5% | 953 | 676 | 41% |
Flow Control | 192 | 183 | 5% | 581 | 360 | 62% |
Automation Systems | 120 | 114 | 5% | 372 | 317 | 17% |
Process Technologies | 554 | 610 | -9% | 1,805 | 1,757 | 3% |
Pulp and Energy | 250 | 256 | -2% | 799 | 798 | 0% |
Paper | 304 | 355 | -14% | 1,006 | 959 | 5% |
Total | 1,295 | 1,288 | 1% | 4,033 | 3,534 | 14% |
Comparable EBITA, EUR million | Q3/2023 | Q3/2022 | Change | Q1-Q3/ |
Q1-Q3/ | Change |
Services | 79 | 55 | 45% | 221 | 142 | 55% |
Automation | 58 | 52 | 12% | 169 | 112 | 50% |
Process Technologies | 25 | 36 | -31% | 84 | 107 | -21% |
Other | -12 | -7 | 72% | -37 | -25 | 52% |
Total | 150 | 136 | 11% | 437 | 337 | 29% |
Comparable EBITA, % of net sales | Q3/2023 | Q3/2022 |
| Q1-Q3/ |
Q1-Q3/ |
|
Services | 18.4 % | 14.3 % |
| 17.3 % | 12.9 % |
|
Automation | 18.7 % | 17.6 % |
| 17.7 % | 16.6 % |
|
Process Technologies | 4.5 % | 5.8 % |
| 4.7 % | 6.1 % |
|
Total | 11.6 % | 10.5 % |
| 10.8 % | 9.5 % |
|
EBITA, EUR million | Q3/2023 | Q3/2022 | Change | Q1-Q3/ |
Q1-Q3/ | Change |
Services | 79 | 55 | 44% | 222 | 134 | 65% |
Automation | 58 | 48 | 21% | 165 | 99 | 67% |
Process Technologies | 25 | 36 | -30% | 86 | 98 | -12% |
Other | -15 | -7 | >100% | -40 | 29 |
|
Total | 147 | 132 | 11% | 433 | 360 | 20% |
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/q3-2023 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 by registering through the link below:
http://palvelu.flik.fi/teleconference/?id=1009890
After the registration you will be provided phone numbers and a conference ID to access the conference. If you wish to ask a question during the conference, please dial *5 on your telephone keypad to enter the question queue.
All questions should be presented in English.
The event can also be followed on social media platform X at http://www.x.com/valmetir.
Further information, please contact:
VALMET
CFO
VP, Investor Relations
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www.valmet.com
Valmet is a leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. With our automation systems and flow control solutions, we serve an even wider base of process industries. Our 17,500 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day.
The company has over 220 years of industrial history and a strong track record in continuous improvement and renewal. In 2022, a major milestone was achieved when the flow control company
Valmet's shares are listed on the Nasdaq Helsinki, and the head office is in
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