ESPOO, Finland, Oct. 30, 2024 /PRNewswire/ --
Figures in brackets, unless otherwise stated, refer to the comparison period, i.e., the same period of the previous year.
July-September 2024: Orders received increased to EUR 1,041 million
-- Orders received increased 6 percent to EUR 1,041 million (EUR 980
million).
-- Orders received increased in the Services and Automation segments
and decreased in the Process Technologies segment.
-- Orders received increased in South America, EMEA (Europe, Middle
East and Africa) and Asia-Pacific, remained at the previous year's
level in North America, and decreased in China.
-- Net sales remained at the previous year's level and amounted to EUR
1,295 million (EUR 1,295 million).
-- Net sales increased in the Automation and Services segments and
decreased in the Process Technologies segment.
-- Comparable earnings before interest, taxes and amortization (Comparable
EBITA) remained at the previous year's level and amounted to EUR 156
million (EUR 150 million).
-- Comparable EBITA increased in the Automation segment, remained at
the previous year's level in the Services segment, and decreased in
the Process Technologies segment.
-- Comparable EBITA margin was 12.0 percent (11.6%).
-- Earnings per share (EPS) were EUR 0.37 (EUR 0.47). EPS decreased mainly
due to lower operating profit and higher net financial expenses.
Adjusted EPS was EUR 0.49 (EUR 0.52).
-- Items affecting comparability amounted to EUR -17 million (EUR -4
million) and were mainly related to Process Technologies and Services
segments.
-- Cash flow provided by operating activities totaled EUR 110 million (EUR
57 million).
January-September 2024: Orders received amounted to EUR 3,374 million
-- Orders received decreased 11 percent to EUR 3,374 million (EUR 3,801
million).
-- Orders received increased in the Services segment, remained at the
previous year's level in the Automation segment, and decreased in
the Process Technologies segment.
-- Orders received remained at the previous year's level in South
America and EMEA and decreased in China, Asia-Pacific and North
America.
-- Net sales decreased 5 percent to EUR 3,831 million (EUR 4,033 million).
-- Net sales increased in the Automation segment, remained at the
previous year's level in the Services segment, and decreased in the
Process Technologies segment.
-- Comparable EBITA remained at the previous year's level and amounted to
EUR 417 million (EUR 437 million).
-- Comparable EBITA remained at the previous year's level in the
Automation and Services segments and decreased in the Process
Technologies segment.
-- Comparable EBITA margin was 10.9 percent (10.8%).
-- EPS was EUR 0.99 (EUR 1.38). EPS decreased mainly due to lower operating
profit and higher net financial expenses. Adjusted EPS was EUR 1.33 (EUR
1.63).
-- Items affecting comparability amounted to EUR -33 million (EUR -4
million) and were mainly related to Process Technologies and Services
segments.
-- Cash flow provided by operating activities totaled EUR 376 million (EUR
229 million).
Guidance for 2024
Valmet reiterates its guidance issued on October 11, 2024, in which Valmet estimates that net sales in 2024 will remain at the previous year's level in comparison with 2023 (EUR 5,532 million) and Comparable EBITA in 2024 will remain at the previous year's level in comparison with 2023 (EUR 619 million).
Short-term market outlook
Valmet estimates that the short-term market outlook for services has decreased to satisfactory (previously good) and that the short-term market outlook for board and paper has decreased to weak (previously satisfactory). Valmet reiterates the good short-term market outlook for flow control and automation systems, and the satisfactory short-term market outlook for pulp, energy 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 Thomas Hinnerskov: A new chapter for Valmet
"I had the honor to join Valmet as President and CEO in mid-August. I have spent my first months meeting Valmet's people and customers across different continents. Valmet's strong relationship with customers, committed people and the amazing legacy of more than 225 years creates a solid foundation for Valmet's next chapter. I am fully committed to making Valmet a success for our customers, shareholders, employees, and society.
The third quarter was two-sided. On one hand, Comparable EBITA margin was 12.0%, the best third quarter margin for Valmet ever. On the other hand, the market activity in Services and board and paper process technologies was slower than we earlier expected, and some customers postponed their final investment decisions. As a result, Valmet's Comparable EBITA guidance for 2024 was changed in October.
Looking ahead, we are excited about the opportunities ahead of us. We have recently launched Valmet DNAe, Valmet's next-generation industrial automation system, which is an important step in our strategy for growing the automation business further to a wide base of process industries globally. In Services, we continue to provide unique value to customers and service the growing global installed base.
We are proud to have been selected to supply the world's largest single-phase pulp mill. This project, valued at over a billion euros, will be included in our fourth quarter orders and will feature full-scope automation and flow control solutions. Importantly, it will serve as a showcase for Valmet's sustainable technologies, reinforcing our commitment to moving our customers' performance forward and environmental stewardship."
Key figures(1)
EUR million, or as indicated Q3/2024 Q3/2023 Change Q1-Q3/ Q1-Q3/ Change 2024 2023 Orders received 1,041 980 6 % 3,374 3,801 -11 % Order backlog(2) 3,536 4,133 -14 % 3,536 4,133 -14 % Net sales 1,295 1,295 0 % 3,831 4,033 -5 % Comparable EBITA 156 150 4 % 417 437 -4 % % of net sales 12.0 % 11.6 % 10.9 % 10.8 % EBITA 138 147 -6 % 384 433 -11 % % of net sales 10.7 % 11.3 % 10.0 % 10.7 % Operating profit (EBIT) 109 127 -14 % 299 359 -17 % % of net sales 8.4 % 9.8 % 7.8 % 8.9 % Profit before taxes 92 120 -23 % 250 340 -27 % Profit for the period 68 86 -21 % 182 256 -29 % Earnings per share, EUR 0.37 0.47 -21 % 0.99 1.38 -29 % Adjusted earnings per share, EUR 0.49 0.52 -7 % 1.33 1.63 -18 % Equity per share, EUR2 13.42 13.49 -1 % 13.42 13.49 -1 % Cash flow provided by operating activities 110 57 93 % 376 229 65 % Cash flow after investing activities 69 31 >100% 165 135 22 % Comparable return on capital employed (Comparable ROCE) before taxes (LTM) 13 % 16 % Return on capital employed (ROCE) before taxes (LTM) 12 % 15 % Return on equity (ROE) (LTM) 11 % 15 % Net debt to EBITDA ratio(3) 1.59 0.74 Gearing(2) 43 % 21 % Equity to assets ratio(2) 40 % 46 %
(1) The calculation of key figures is presented on page 62
(2) At end of period
(3) Last twelve months' EBITDA
LTM = Last twelve months
Segment key figures
Orders received, EUR million Q3/2024 Q3/2023 Change Q1-Q3/ Q1-Q3/ Change 2024 2023 Services 412 349 18 % 1,436 1,356 6 % Automation 322 289 11 % 1,002 1,021 -2 % Flow Control 188 185 2 % 578 613 -6 % Automation Systems 133 104 29 % 425 408 4 % Process Technologies 307 343 -10 % 936 1,424 -34 % Pulp and Energy 172 138 25 % 415 626 -34 % Paper 136 205 -34 % 521 798 -35 % Total 1,041 980 6 % 3,374 3,801 -11 %
Net sales, EUR million Q3/2024 Q3/2023 Change Q1-Q3/ Q1-Q3/ Change 2024 2023 Services 453 429 5 % 1,333 1,275 5 % Automation 354 312 14 % 1,013 953 6 % Flow Control 196 192 2 % 585 581 1 % Automation Systems 158 120 32 % 429 372 15 % Process Technologies 488 554 -12 % 1,485 1,805 -18 % Pulp and Energy 203 250 -19 % 649 799 -19 % Paper 285 304 -6 % 836 1,006 -17 % Total 1,295 1,295 0 % 3,831 4,033 -5 %
Comparable EBITA, EUR million Q3/2024 Q3/2023 Change Q1-Q3/ Q1-Q3/ Change 2024 2023 Services 79 79 0 % 219 221 -1 % Automation 65 58 11 % 174 169 3 % Process Technologies 22 25 -13 % 57 84 -32 % Other -10 -12 -16 % -32 -37 -13 % Total 156 150 4 % 417 437 -4 %
Comparable EBITA, % of net sales Q3/2024 Q3/2023 Q1-Q3/ Q1-Q3/ 2024 2023 Services 17.4 % 18.4 % 16.4 % 17.3 % Automation 18.3 % 18.7 % 17.1 % 17.7 % Process Technologies 4.4 % 4.5 % 3.9 % 4.7 % Total 12.0 % 11.6 % 10.9 % 10.8 %
EBITA, EUR million Q3/2024 Q3/2023 Change Q1-Q3/ Q1-Q3/ Change 2024 2023 Services 75 79 -4 % 209 222 -6 % Automation 64 58 11 % 172 165 4 % Process Technologies 8 25 -66 % 39 86 -55 % Other -10 -15 -35 % -36 -40 -10 % Total 138 147 -6 % 384 433 -11 %
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/q3-2024 [https://c212.net/c/link/?t=0&l=en&o=4290964-1&h=4143113626&u=https%3A%2F%2Fvalmet.videosync.fi%2Fq3-2024&a=https%3A%2F%2Fvalmet.videosync.fi%2Fq3-2024] on Wednesday, October 30, 2024, at 3:00 p.m. Finnish time (EEST). President and CEO Thomas Hinnerskov and CFO Katri Hokkanen will be presenting the results.
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:
https://palvelu.flik.fi/teleconference/?id=50048302 [https://c212.net/c/link/?t=0&l=en&o=4290964-1&h=3504950868&u=https%3A%2F%2Fpalvelu.flik.fi%2Fteleconference%2F%3Fid%3D50048302&a=https%3A%2F%2Fpalvelu.flik.fi%2Fteleconference%2F%3Fid%3D50048302+]
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 to enter the question queue.
All questions should be presented in English.
The event can also be followed on social media platform X at x.com/valmetir [https://c212.net/c/link/?t=0&l=en&o=4290964-1&h=3572023267&u=https%3A%2F%2Fx.com%2Fvalmetir&a=x.com%2Fvalmetir].
Further information, please contact:
Pekka Rouhiainen, VP, Investor Relations, Valmet, tel. +358 10 672 0020
VALMET
Katri Hokkanen
CFO
Pekka Rouhiainen
VP, Investor Relations
DISTRIBUTION:
Nasdaq Helsinki
Major media
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Valmet has a global customer base across various process industries. We are a leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries, and with our automation and flow control solutions we serve an even wider base of process industries. Our more than 19,000 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. Valmet's net sales in 2023 were approximately EUR 5.5 billion.
Valmet's shares are listed on the Nasdaq Helsinki and the head office is in Espoo, Finland.
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