Home News 2018 Outotec's interim report January-September 2018
Stock Exchange Release October 31, 2018 09:00:00 AM CET

Outotec's interim report January-September 2018

OUTOTEC OYJ INTERIM REPORT OCTOBER 31, 2018 AT 9:00 AM

INTERIM REPORT JANUARY - SEPTEMBER 2018  

Good growth in order intake and sales, profitability improved and solid cashflow

"The market for minerals and metals processing technologies continued to develop positively. Our order intake increased 14% from last year during the reporting period and 16% during the third quarter. The order intake picked up in all businesses, and I am pleased that we won a large order for a greenfield copper concentrator in South America. 

Our sales increased 17% both in the reporting period and the third quarter due to equipment and plant deliveries. In service business we were still experiencing supplier constrains and sales remained at previous year's level. However, the sales started to improve towards the end of the third quarter. Our profitability improved in the Minerals Processing segment, while the Metals, Energy & Water segment showed progress compared to last year but remained unprofitable.

With our simplified organization and must-win battles we will continue to improve our profitability.

On October 26, 2018, we had to announce problems in our delivery of the ilmenite smelter project contracted in 2012. We have now agreed with our customer, National Titanium Dioxide Company (Cristal), to work together to examine and identify the root causes of the problems in the ilmenite smelter project. At this point, it is too early to assess the total financial impact of the needed repair. If it appears that Outotec has caused the root cause to this incident, the cost for Outotec will be material, which would also impact our 2018 adjusted EBIT.

We expect the demand outlook for our technologies and services to remain good. However, major investments continue to develop relatively slowly", summarized President & CEO Markku Teräsvasara

Summary of key figures


 
Q3 Q3     Q1-Q3 Q1-Q3     Q1-Q4
EUR million 2018 2017 %1 %2 2018 2017 %1 %2 2017
Order intake 271.5 234.2 16 22 952.4 838.8 14 19 1,204.6
Service order intake 118.1 123.5 -4 -1 403.2 369.4 9 16 494.9
Order backlog at end of period 1,007.2 1,002.7 0 - 1,007.2 1,002.7 0 - 1,005.4
Sales 320.2 273.9 17 21 938.5 803.0 17 22 1,143.8
Service sales 121.2 125.4 -3 1 333.4 334.4 -0 6 480.4
Gross margin, % 23.0 24.3     22.5 23.4     23.6
Adjusted EBIT3 18.5 14.3     33.1 15.2     33.5
Adjusted EBIT3, % 5.8 5.2     3.5 1.9     2.9
EBIT 16.0 12.3     18.4 9.7     26.0
EBIT, % 5.0 4.5     2.0 1.2     2.3
Net cash from operating activities 43.8 27.2     88.0 -7.3     39.6
Earnings per share, EUR 0.04 0.03     0.00 -0.03     -0.03

1 Change, %
2 Change in comparable currencies, %
3 Excluding restructuring- and acquisition-related items as well as PPA amortizations.

Financial guidance for 2018 sales reiterated, aEBIT guidance narrowed

The guidance for 2018 is based on the current order backlog as well as expected order intake excluding possible material additional costs related to the ilmenite smelter project as announced on October 26, 2018.

  • Sales are expected to be approximately EUR 1.2 - 1.3 billion, and
  • Adjusted EBIT* is expected to be approximately 5 - 6% (previously 5 - 7%)

* Excluding restructuring- and acquisition-related items, as well as purchase price allocation amortizations.

This text is a summary of Outotec's January-September 2018 Interim report. The full report is available as an attachment to this report. 

FURTHER INFORMATION

Outotec Oyj

Markku Teräsvasara, CEO
Tel. +358 20 529 2000

Jari Ålgars, CFO
Tel. +358 20 529 2007

Rita Uotila, Vice President - Investor Relations
Tel. +358 20 529 2003, mobile +358 400 954 141

Format for e-mail addresses: firstname.lastname@outotec.com

BRIEFING/TELECONFERENCE

Date: October 31, 2018

Time: 2:00 PM EET

Venue: Outotec House, Rauhalanpuisto 9, Espoo, Finland

Joining the teleconference

To register as a participant for the teleconference and Q&A session, please dial in 5 to 10 minutes before the beginning of the event using the numbers below.

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