Home Corporate Newsroom News 2020 Metso Outotec’s Interim Review January – September 2020
Stock Exchange Release October 28, 2020

Metso Outotec’s Interim Review January – September 2020

Metso Outotec Corporation’s stock exchange release on October 28, 2020, at 09:00 a.m. EET

The demerger of Metso Corporation and the combination of Metso’s Minerals business and Outotec was completed on June 30, 2020. In the transaction, the legal acquirer Outotec issued new shares to Metso shareholders and received all assets, rights, debts and liabilities related to Metso’s Minerals business.

This transaction is treated in IFRS reporting as a reverse acquisition, where Metso Minerals is the accounting acquirer and Outotec the accounting acquiree. The historical IFRS-based information for 2019 and January-June 2020 includes only Metso Minerals carve-out information.

In this interim report, the segment reporting is based on the new Metso Outotec organization, consisting of the Minerals, Aggregates, and Metals & Recycling segments.

Metso Outotec has prepared both illustrative and IFRS-based historical quarterly segment information for 2019 and January - June 2020. The illustrative historical segment information is presented as a combination of Metso Minerals carve-out information and Outotec information, according to the Metso Outotec segment structure. The Outotec information is based on Outotec’s historical accounting principles, and Outotec’s Minerals Processing segment is included in Metso Outotec’s Minerals segment and Outotec’s Metals Refining segment is included in Metso Outotec’s Metals & Recycling segment.

Figures in brackets refer to the corresponding period in 2019, unless otherwise stated.

Third-quarter 2020 in brief, IFRS (comparison period illustrative combined)

  • Orders received EUR 836 million (EUR 1,169 million)
  • Sales EUR 985 million (EUR 1,073 million)  
  • Adjusted EBITA EUR 109 million, or 11.1% of sales (EUR 153 million or 14.3%)
  • EBIT EUR 47 million, or 4.8% of sales (EUR 126 million or 11.7%)
  • Earnings per share EUR 0.03
  • EUR 31 million annual run rate of the integration cost synergies realized

January-September 2020, IFRS and illustrative combined

  • Orders received EUR 2,926 million (EUR 3,428 million)
  • Sales EUR 3,011 million (EUR 3,054 million)
  • Adjusted EBITA EUR 344 million, or 11.4% (EUR 378 million or 12.4%)
  • EBIT EUR 206 million, or 6.9% of sales (EUR 327 million or 10.7%)
  • Earnings per share EUR 0.15
  • Cash flow from operations EUR 410 million (IFRS)
  • Net debt EUR 943 million (IFRS)
  • Gearing 47% (IFRS)

President and CEO Pekka Vauramo

July 1 marked Day 1 for the new Metso Outotec, and we have since proceeded quickly with the integration and realization of the first synergies. By the end of September, we had made a large majority of the nominations to the new organization, and the organizational restructuring was completed in many countries. This work has resulted in a significant amount of headcount reductions, which are unfortunate but unavoidable due to the combination of the organizations.   

At the end of the quarter, we had reached an annual run rate of EUR 31 million in cost synergies, which compares to the end of the year estimate of EUR 50 million and the total cost synergy estimate of EUR 120 million by the end of 2021. In addition, we were able to realize the first revenue synergies during the quarter by capitalizing on cross-selling opportunities in the services business.

The Covid-19 pandemic continued to have an impact on our end markets during the quarter. The most significant impacts resulted from the limited access to customer sites and the slow decision-making related to new project and modernization orders and non-critical services. These affected our order and sales volumes. At the same time, our performance was supported by the McCloskey acquisition, which we can be very pleased about overall.

Our operative result (adjusted EBITA) was affected by lower sales year-on-year and the loss reported in the Metals & Recycling segment. Due to further weakening of the metals refining market, the Metals business scope and cost structure will be addressed via a restructuring and turnaround program which is expected to show results next year.

During the past months, we have worked on our strategy and targets for the new company and they will soon be ready for publication. We are confident that Metso Outotec has a strong and unique platform that we can develop further through synergies, innovation and sustainability, building the company into an industry-leading technology and services provider with strong financial performance.

Covid-19 market update

The Covid-19 pandemic continued to affect Metso Outotec’s end markets and customer operations during the third quarter. The situation was largely unchanged, compared to the end of the second quarter, with the most significant impacts relating to restrictions on workforce mobility and limited access to customer sites. Metso Outotec’s own operations have been running with additional health and safety measures and without major disruptions since early June.

The aggregates business, which faced the most rapid and negative impacts during the second quarter, has seen demand stabilize to the end of June levels of about 75-80% of normal, while continuing to see further strong market growth in China.

In the minerals and metals markets, decision-making related to bigger investment projects continues to be slow and hampered by mobility restrictions. The services business continues to be affected by limited access to planning, preparing and carrying out maintenance and modernization work at customer sites. The demand for spare parts and consumables has been good, thanks to healthy utilization rates at mines.

Market outlook

According to its disclosure policy, Metso Outotec’s market outlook describes the expected sequential development of market activity during the following six-month period using three categories: improve, remain at the current level, or decline.

Metso Outotec expects the market activity to remain at the current level, subject to a possible worsening of the Covid-19 pandemic.

Key figures (Q3/2020 IFRS, other periods illustrative combined)

EUR million Q3/2020IFRS Q3/2019 Change % Q1-Q3/ 2020 Q1-Q3/2019 2019
Orders received 836 1,169 -28 2,926 3,428 4,510
Orders received by services business 477 599 -20 1,607 1,799 2,390
% of orders received 57 51 - 55 53 53
Order backlog - - - 2,095 2,562 2,478
Sales 985 1,073 -8 3,011 3,054 4,186
Sales by services business 537 599 -10 1,587 1,671 2,269
% of sales 54 56   53 55 54
Adjusted EBITA 109 153 -29 344 378 519
% of sales 11.1 14.3   11.4 12.4 12.4
Operating profit 47 126 -63 206 327 433
% of sales 4.8 11.7 - 6.9 10.7 10.3
Earnings per share, EUR (IFRS) 0.03 - - 0.17* - -
Earnings per share, EUR       0.15**    
Cash flow from operations (IFRS) - - - 410 - -
Gearing, % (IFRS) - - - 47 - -
Personnel at end of period - - - 16,062 - -

* based on average number of outstanding shares (707,228 thousand)

**based on the number of outstanding shares at the end of period (827,979 thousand)

Audiocast and conference call details

Metso Outotec’s President and CEO Pekka Vauramo and CFO Eeva Sipilä will present the results in an audiocast and a conference call for analysts and investors today at 1:00 p.m. EET.

The audiocast can be followed at www.mogroup.com/investors/financials/interim-review. A recording and a transcript will be available at the same webpage after the event has finished.

Conference call participants are requested to dial in five minutes before the event on:
United States:   +1 631 913 1422
other countries: +44 333 300 0804

The confirmation code for joining the conference call is 21965964#

Further information, please contact:

Juha Rouhiainen, VP, Investor Relations, Metso Outotec Corporation, tel. +358 20 4843253, email: juha.rouhiainen@mogroup.com

Metso Outotec Corporation

Eeva Sipilä


Juha Rouhiainen

VP, Investor Relations


Nasdaq Helsinki Ltd

Main media


Metso Outotec is a frontrunner in sustainable technologies, end-to-end solutions and services for the aggregates, minerals processing, metals refining and recycling industries globally. By improving our customers’ energy and water efficiency, increasing their productivity, and reducing environmental risks with our product and process expertise, we are the partner for positive change. 

Headquartered in Helsinki, Finland, Metso Outotec employs over 15,000 people in more than 50 countries and its pro forma sales for 2019 were about EUR 4.1 billion. The company is listed on the Nasdaq Helsinki. mogroup.com, twitter.com/metsooutotec

Metso Outotec Interim Report Q3/2020 Download