Home Corporate Newsroom News 2020 Metso Outotec’s Half-Year Review January-June 2020
Stock Exchange Release August 5, 2020

Metso Outotec’s Half-Year Review January-June 2020

Metso Outotec Corporation’s stock exchange release on August 5, 2020, at 9:00 a.m. EEST

The demerger of Metso Corporation and 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. In the IFRS reporting this transaction is treated as a reverse acquisition, where Metso Minerals is the accounting acquirer and Outotec the accounting acquiree. 

Under the IFRS reporting, the consolidated Metso Outotec balance sheet is reported as at the transaction closing date of June 30, 2020, whereas for the reporting period prior to closing, the income statement and cash flow include only Metso Minerals on a carve-out basis. In addition to the IFRS reporting, additional information on Outotec as well as a pro forma based Metso Outotec income statement are provided separately. Presented Outotec financial information is based on Outotec’s accounting principles. Metso Outotec pro forma financial information is presented to illustrate the impacts of the combination of Metso Minerals and Outotec on the business performance of Metso Outotec. The pro forma financial information reflects the application of pro forma adjustments that are based upon certain assumptions that management believes are reasonable under the circumstances.

In this half-year report, the segment reporting is still based on the legacy segment structure of the companies, i.e. Metso’s Minerals business and Outotec’s Minerals Processing and Metals Refining segments. The segment reporting based on the new Metso Outotec organization will be effective as of July 1, 2020, and will form the basis for the Q3/2020 reporting.

Second-quarter 2020 in brief, pro forma

  • Orders received EUR 976 million
    • Metso Minerals EUR 762 million; Outotec EUR 214 million
  • Sales EUR 1,047 million
    • Metso Minerals EUR 751 million; Outotec EUR 294 million 
  • Adjusted EBITA EUR 143 million or 13.6%
    • Metso Minerals EUR 110 million or 14.6%
    • Outotec EUR 31 million or 10.5%

January-June 2020 in brief, pro forma

  • Orders received EUR 2,090 million
    • Metso Minerals EUR 1,636 million; Outotec EUR 454 million
  • Sales EUR 2,027 million
    • Metso Minerals EUR 1,447 million; Outotec EUR 579 million
  • Adjusted EBITA EUR 236 million or 11.7%
    • Metso Minerals EUR 184 million or 12.7%
    • Outotec EUR 51 million or 8.9%
  • Cash flow from operations: Metso Minerals EUR 357 million, Outotec EUR -67 million

Balance sheet key figures on June 30, 2020, IFRS

  • Balance sheet total EUR 5,575 million

  • Liquid funds EUR 528 million
  • Net debt EUR 913 million
  • Gearing 45.5%
  • Debt-to-capital ratio 31.3%
  • Equity-to-assets ratio 38.9% 

President and CEO Pekka Vauramo:

The second quarter was exceptional in many ways due to the Covid-19 situation. Most importantly we needed to ensure the safety and well-being of our personnel, customers, and business partners. We succeeded in this while continuing to serve our customers despite the limitations posed by pandemic-related restrictions around the world. The virtual and digital dialogue with customers has taken major steps forward in recent months, with over 2,000 customers participating in our webinars during the first month and a significant number of sales leads coming in through our digital marketing channels. In addition, we successfully completed all the competition authority processes that enabled the combination of Metso’s Minerals business with Outotec through the completion of the partial demerger of Metso.

I am proud of our performance during these challenging times. Quarterly orders increased in Metso Minerals, while the slowdown in decision-making related to larger projects resulted in a decline in Outotec’s orders. The demand for smaller new mining equipment was healthy, whereas demand in aggregates was weaker in the beginning of the quarter and recovered somewhat towards the end of June. The services business saw good demand, thanks to our global presence and capabilities to secure customers’ production in difficult circumstances.

Our pro forma sales for the quarter increased year-on-year, with Metso Minerals reporting growth and Outotec sales declining. Pro forma profitability in terms of adjusted EBITA was good at 13.6%, driven by solid product margins and the rapid implementation of the temporary cost saving and cash protection measures. Those measures included reduction of worktime or compensation as well as strict control on discretionary spend across the organization. In addition to adjusted EBITA, results of this were seen in the strong cash flow from operations of Metso Minerals. I want to thank everyone in the organization for contributing to this performance during the quarter.

At the end of the quarter on June 30, 2020 we completed the combination of Metso Minerals and Outotec through Metso’s partial demerger. Since then we have actively started to integrate the two companies bringing about significant benefits to our customers, personnel, suppliers and shareholders. Metso Outotec is a unique combination focusing on supplying sustainable technologies, solutions and services to our customers to fulfill our promise of being the partner for positive change. We are grateful for the confidence and commitment our stakeholders have shown us and hope you will stay with us during this exciting journey. To the whole Metso Outotec team, I want to say thank you one more time for your hard work during the past 12 months. Well done!

Covid-19 market update

The Covid-19 pandemic continued to have a negative impact on Metso Outotec’s own and its customers’ operations during the second quarter. The overall situation was most challenging in the beginning of the quarter with lockdowns keeping our own and our customers’ operations closed in several key markets as well as widespread restrictions relating to travel and workforce mobility affecting operations. The market environment gradually improved during the quarter, as lockdowns and restrictions were lifted. Market activity in China, which saw a sharp decline in the first quarter, recovered quickly during the second quarter, with especially strong demand in infrastructure. All our own equipment and consumables manufacturing and assembly operations have been operational since the beginning of June.

For Metso Outotec, the most affected business during the second quarter was the aggregates equipment business, where the investment activity of customers and distributors was significantly lower than during the normal high season. The only exception being the business in China. The aggregates equipment business saw a gradual improvement from a weak April to the end of June, when the demand globally was about 75% compared to normal levels.

In the mining and metals markets, commodity prices were under pressure early in the quarter and some mines were either shut down or had to operate with limited capacity utilization due to the lockdowns. Decision-making related to bigger investment projects especially in metals refining was affected. The mining equipment market continued to be active, driven by smaller brownfield projects. During the quarter mines were re-opened and commodity prices recovered to pre-Covid levels.  The mining services business was somewhat impacted by the limited access to carry out service work at customer sites. Also, limited access to sites resulted in a slowdown of bigger modernizations. Nevertheless, the demand for spare parts and consumables was good throughout the quarter.

Restrictions on mobility continue in many countries and risk further impacting Metso Outotec during the second half. The situation continues to be challenging particularly in North and South America.

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, being subject to a possible worsening of the Covid-19 pandemic.

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 on the same day at 1:00 p.m. EEST.

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 42802579#.

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 illustrative combined sales for 2019 were about EUR 4.2 billion. The company is listed on the Nasdaq Helsinki. mogroup.com, twitter.com/metsooutotec

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