Metso posts record quarter profitability

Metso CEO and president Pekka Vauramo says the Finnish quarrying and mining solutions giant's profitability reached a record level in the second quarter of 2023, driven by a continued improvement in the Minerals segment and solid performances in Aggregates and Metals. 
Crushing Static & Mobile / July 20, 2023
By Guy Woodford
Metso is celebrating record quarterly profitability. Pic: Metso

Operating profit rose to €230mn in the quarter, with sales from April 1 to June 30, rising by 15% to €1,483mn. Metso's received orders declined -13%, amounting to €1,398mn.

Further first half-year 2023 figures released today show Metso increased its H1 sales by 18% to €2,901mn. Operating profit stood at €426mn. The group's received orders were down -3% to €2,931mn.

Pekka Vauramo
Metso CEO and president Pekka Vauramo has welcomed the group's healthy quarterly and half-year trading performance. Pic: Metso 

Metso president and CEO Pekka Vauramo said: "We performed well in the second quarter with the group's profitability reaching its highest level to date. In addition, we made good progress in several key areas, such as launching new solutions for battery metals processing and investing in our capacity around the world.

"The market activity remained in line with expectations and was healthy in the mining market yet softer in the aggregates market, especially in Europe. As a result of a high year-on-year comparison in the Minerals equipment business and the softness in Aggregates, our orders received came in lower year-on-year. In Minerals services, orders for spare parts and consumables grew at a healthy rate compared to a year ago, while 

there were fewer orders for upgrades and modernisations, mostly due to timing."

Vauramo said Metso's Q2 15% sales growth resulted from all segments efficiently delivering their backlogs.

He continued: "Sales of our Planet Positive products grew 43% to almost €1.5 billion during the last 12 months, and there is strong demand for these products that drive more sustainable minerals processing. In other focus areas, we have seen continuous positive development, such as high personnel engagement and inclusion scores and a reduction in our carbon footprint.

"During the [second] quarter, we continued to advance in several key areas designed to strengthen our position in the markets and our capabilities to drive customer success. For example, we launched an advanced battery black mass recycling process, as a result of which our offering for battery minerals production covers 90% of the process. We also signed partnerships as a technology supplier for feasibility studies and pilot plants related to the production of battery minerals and rare earth ores in various countries.

Metso logo
Metso expects market activity to remain at current levels in Minerals and to decline slightly in Aggregates. Pic: Metso

"Looking ahead, we see energy transition and electrification advancing, which will support our business in the coming years. Our full focus will be on capitalising on these opportunities and further improving our performance."

According to the company's disclosure policy, Metso'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 expects the market activity to remain at the current level in Minerals and to decline in Aggregates slightly.

In its previously published outlook, Metso expected the overall market activity to remain at the current level, including normal seasonality in the aggregates market.

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