The board of directors at Finnish quarrying and mining solutions provider Metso has updated the company’s financial targets.
Metso says its focused portfolio, built around its Aggregates and Minerals segments, and the positive development seen in its profit-making capabilities have driven the profitability target to a new level. Going forward, the group’s profitability target will call for an adjusted EBITA margin exceeding 17% over the cycle (previously exceeding 15% over the cycle). The company’s other financial targets remain unchanged.
After the update, Metso’s financial targets are: Adjusted EBITA margin exceeding 17% over the cycle; Maintaining an ‘Investment Grade’ credit rating; Dividend pay-out of at least 50% of earnings per share; Progress in sustainability in alignment with the 1.5 °C commitment.
Metso president and CEO Pekka Vauramo said: “Since completing the Metso Outotec integration, we have successfully strengthened our results and profitability, de-risked our business and have made strong progress in our other targets. As a result, we have evaluated our financial targets and decided to raise the bar relating to the development of our profitability.
“Going forward, we will target an adjusted EBITA margin exceeding 17% over the cycle. This upgrade is based on the recent development of our financial performance, changes in our business portfolio, as well as on our possibilities to further improve the financial result of our continuing operations. We have achieved our previous adjusted EBITA margin target of exceeding 15% during the latest 12-month period.
“The further improvement of our profitability towards the new target will continue to be driven by the development our product- and aftermarket-focused business model and related offering, organic and acquired growth of the services business, as well as the ongoing improvements of productivity and operational efficiency in all our businesses. Our other three targets – a strong balance sheet, a competitive dividend, and the continuous development of sustainability – will remain unchanged and will contribute to our value generation also in the future,” Vauramo concluded.
