Finnish quarrying plant maker Metso posted a record financial year in 2019, with company CEO and president Pekka Vauramo describing it as a "historical and transformative" 12 months for the manufacturer.
Metso’s year-on-year sales grew 15%, totalling €3.635 billion. Meanwhile, the firm’s operating profit increased to €418 million. Metso reports “healthy” market activity, with orders received also up 5% compared to 2018 to €3.69bn. Further figures – for Q4 2019 – show Metso sales up 7% to €963mn, with operating profit rising to €96mn.
“The last year was in many ways historical and transformative for Metso. It also marked a record in our financial performance, as our sales increased in both segments and our profitability was higher than ever in the company’s history,” said Vauramo. “Other significant accomplishments included the launches of many new products as well as new initiatives in sustainability. What is common to our new products is that they are designed to accommodate our customers’ focus on improving their productivity. In sustainability, we published the Metso Climate Program, which aims for notable reductions in emissions. We also succeeded in improving our safety performance significantly. The great performance in 2019 is thanks to all the Metso people, who have shown their capabilities and commitment during the year.”
In 2019, Metso made two major strategic decisions, which Vauramo said were “transformative to both Metso and our industry”. The first was the acquisition of McCloskey, a Canadian supplier of mobile aggregates crushers and screens. After the closing of the acquisition in October, Metso’s offering strengthened in the mobile aggregates equipment market, which is estimated to see the industry’s fastest-growing demand.
The second and truly transformative step was the decision related to the partial demerger of Metso, after which Metso’s Minerals business will be combined with Outotec to create Metso Outotec, a unique company in the minerals, metals and aggregates industries. At the same time, the valves business will continue as an independent listed company named Neles.
Vauramo continued: “We are confident that, as a result of this transaction, both companies will be well-positioned to grow and create value for our customers and other stakeholders. Shareholders of both Metso and Outotec approved the transaction in October and internal preparations have proceeded according to plan. The completion of the transaction still requires approvals from the competition authorities in various markets. According to our current estimate, we expect the closing to take place on June 30, 2020.”
