Valmet's Interim Review
Figures in brackets, unless otherwise stated, refer to the comparison period, i.e., the same period of the previous year.
January-
** Orders received decreased 32 percent to
- Orders received decreased in all three segments.
- Orders received decreased in all areas.
** Net sales decreased 8 percent to
- Net sales remained at the previous year's level in the Services and Automation segments and decreased in the Process Technologies segment.
** Comparable earnings before interest, taxes and amortization (Comparable EBITA) decreased 9 percent to
- 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 10.0 percent (10.1%).
** Earnings per share (EPS) were
** Items affecting comparability amounted to
** Cash flow provided by operating activities totaled
Guidance for 2024 unchanged
Valmet reiterates its guidance issued on
Short-term market outlook
Valmet estimates that the short-term market outlook for services has increased to good (previously good/satisfactory), that the short-term market outlook for pulp has decreased to weak (previously satisfactory) and that the short-term market outlook for board and paper has decreased to weak/satisfactory (previously satisfactory). In board and paper, customer activity is weak and Valmet's capacity utilization satisfactory. Valmet reiterates the good short-term market outlook for flow control, automation systems and energy, and the satisfactory short-term market outlook for 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
"Valmet's orders received amounted to
Valmet's net sales amounted to
The customer activity in services has improved, and the short-term market outlook for services has increased to good. As the market outlooks for flow control and automation systems remained good, all our stable businesses now have a good market outlook for the second and the third quarter of 2024.
In Process Technologies, the customer activity is good in energy and satisfactory in tissue. For pulp, the short-term market outlook has decreased to weak. For board and paper, the outlook has decreased to weak/satisfactory, as the customer activity is weak while Valmet's capacity utilization remains satisfactory. Even though the short-term market outlook has decreased in Process Technologies, the long-term megatrends have not changed and continue to be favorable for all Valmet's three segments.
Integration of Tissue Converting, which Valmet acquired during the fourth quarter of 2023, has proceeded well. The orders received of Tissue Converting developed well in the first quarter and customers have appreciated Valmet's combined tissue offering. We have already received synergetic orders including both Valmet's tissue making line and the converting equipment.
Valmet completed the acquisition of the Process Gas Chromatography business from Siemens soon after the first quarter ended, on
Valmet's automation business reached a major milestone on
Chair of the Board of Directors Mikael Mäkinen:
"On
Key figures1
EUR million, or as indicated | Q1/2024 | Q1/2023 | Change | 2023 |
Orders received | 1,050 | 1,552 | -32 % | 4,955 |
Order backlog2 | 3,790 | 4,595 | -18 % | 3,973 |
Net sales | 1,212 | 1,321 | -8 % | 5,532 |
Comparable EBITA | 121 | 133 | -9 % | 619 |
% of net sales | 10.0 % | 10.1 % |
| 11.2% |
EBITA | 114 | 131 | -13 % | 605 |
% of net sales | 9.4 % | 9.9 % |
| 10.9% |
Operating profit (EBIT) | 87 | 97 | -10 % | 507 |
% of net sales | 7.2 % | 7.3 % |
| 9.2% |
Profit before taxes | 73 | 91 | -20 % | 473 |
Profit for the period | 56 | 71 | -21 % | 359 |
Earnings per share, EUR | 0.30 | 0.38 | -20 % | 1.94 |
Adjusted earnings per share, EUR | 0.41 | 0.51 | -19 % | 2.28 |
Equity per share, | 12.93 | 12.50 | 3 % | 13.93 |
Cash flow provided by operating activities | 138 | 208 | -34 % | 352 |
Cash flow after investing activities | 109 | 175 | -38 % | -181 |
Comparable return on capital employed (Comparable ROCE) before taxes (LTM) | 15 % | 19 % |
| 15% |
Return on capital employed (ROCE) before taxes (LTM) | 14 % | 20 % |
| 14% |
Return on equity (ROE, LTM) | 15 % | 20 % |
| 14% |
Net debt to EBITDA ratio3 | 1.36 | 0.49 |
| 1.46 |
Gearing2 | 39 % | 15 % |
| 40% |
Equity to assets ratio2 | 39 % | 45 % |
| 43% |
1 The calculation of key figures is presented on page 51.
2 At end of period.
3 Last twelve months' EBITDA
LTM = Last twelve months
Segment key figures
Orders received, EUR million | Q1/2024 | Q1/2023 | Change | 2023 |
Services | 527 | 577 | -9% | 1,760 |
Automation | 328 | 391 | -16% | 1,340 |
Flow Control | 194 | 217 | -10% | 789 |
Automation Systems | 134 | 175 | -23% | 551 |
Process Technologies | 195 | 584 | -67% | 1,856 |
Pulp and Energy | 57 | 212 | -73% | 854 |
Paper | 138 | 372 | -63% | 1,002 |
Total | 1,050 | 1,552 | -32% | 4,955 |
Net sales, EUR million | Q1/2024 | Q1/2023 | Change | 2023 |
Services | 406 | 389 | 4% | 1,784 |
Automation | 309 | 304 | 2% | 1,328 |
Flow Control | 188 | 188 | 0% | 777 |
Automation Systems | 121 | 116 | 4% | 551 |
Process Technologies | 497 | 628 | -21% | 2,420 |
Pulp and Energy | 225 | 286 | -21% | 1,067 |
Paper | 272 | 342 | -21% | 1,353 |
Total | 1,212 | 1,321 | -8% | 5,532 |
Comparable EBITA, EUR million | Q1/2024 | Q1/2023 | Change | 2023 |
Services | 60 | 63 | -5% | 312 |
Automation | 51 | 50 | 3% | 248 |
Process Technologies | 21 | 30 | -30% | 110 |
Other | -11 | -9 | 15% | -50 |
Total | 121 | 133 | -9% | 619 |
Comparable EBITA, % of net sales | Q1/2024 | Q1/2023 |
| 2023 |
Services | 14.6 % | 16.1 % |
| 17.5 % |
Automation | 16.5 % | 16.3 % |
| 18.6 % |
Process Technologies | 4.2 % | 4.7 % |
| 4.5 % |
Total | 10.0 % | 10.1 % |
| 11.2 % |
EBITA, EUR million | Q1/2024 | Q1/2023 | Change | 2023 |
Services | 56 | 62 | -10% | 302 |
Automation | 50 | 44 | 12% | 245 |
Process Technologies | 21 | 33 | -35% | 116 |
Other | -14 | -9 | 51% | -58 |
Total | 114 | 131 | -13% | 605 |
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/q1-2024 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:
https://palvelu.flik.fi/teleconference/?id=50048300
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 www.x.com/ValmetIR.
Further information, please contact:
VALMET
CFO
VP, Investor Relations
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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 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
Valmet's shares are listed on the Nasdaq Helsinki and the head office is in
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