Metso sees 28% rise in second quarter sales
27 Jul 2022
Order intake rises as well, while impacts from war in Russia weigh on bottom line
Metso Outotec has announced a 28% rise in sales for the second quarter of 2022, with $1.3 billion worth of machinery sold.
The Finnish materials processing equipment giant said orders rose by 18% year-on-year, reaching $1.65bn, a rise of $253 million over the second quarter last year.
Pekka Vauramo, president and CEO of Metso, said: “Our orders increased 11% year-on-year in constant currencies, thanks to the strong activity and demand in the mining markets as well as our strong position and Planet Positive product offering.
“Orders received in the Minerals segment grew 40% in constant currencies, with strong growth in both equipment and services orders. Orders in the Aggregates segment were flat year-on-year, despite softening of the European markets, and the Metals segment reported somewhat low order intake due to the timing of customers’ investments.
“Our sales growth of 21% in constant currencies was supported by the backlog built during the previous quarters, and both equipment and services reported double-digit growth rates.”
Pekka added that the rising cost of raw materials continues to impact Metso, with the effect of the rise most visible in Metso’s consumables business, “where the mitigation actions continue”.
Metso has projected the mining sector to remain strong in the second half of 2022, but expects the European aggregates market to remain flat or decline slightly over the next few months.
“Following the expected softening of the overall economy due to inflation and the continuing war in Europe, we are slightly cautious regarding the activity in the aggregates market in Europe in particular,” said Pekka.
Withdrawing services from the Russia market in protest against Russia’s invasion of Ukraine has also adversely affected Metso’s balance sheet, the company said.
“The negative impact of the wind down in the Group’s order backlog at the end of June is approximately $385m,” the company said, adding that it has not counted any revenue from customers or contracts that are subject to European sanctions, and “is not taking new orders for deliveries to Russia”.
“While volatility is likely to continue in the global economy and in our key markets, I’m confident that we are well-placed to continue delivering on our strategy, including the review of the Metals segment, as part of the continuous development of our portfolio,” said Pekka.