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[April 2007]
CEO's Review at Metso AGM
At Metso Corporation's AGM at the beginning of the month, President and CEO Jorma Eloranta estimated in his review that Metso's profitable growth would continue again in 2007. The good order intake in the first quarter supports the positive development for full year.
“As we noted in February, in connection with the publication of our Financial Statements, Metso's net sales in 2007 are estimated to grow by more than 20 percent on 2006, and the operating profit is estimated to clearly improve,” he said. “We also repeat our estimate regarding the 2007 operating profit margin: It is estimated that the operating profit margin will be slightly below Metso's 10 percent target. Metso's order backlog has further strengthened from the year-end, which supports our favorable full-year estimate."
However, Eloranta said that in businesses like Metso's the net sales and operating profit can vary significantly between quarters: ”We estimate that this year the first quarter will be the weakest, and the net sales and operating profit for the last three quarters of the year will clearly improve from the first quarter. This is mainly due to the timing and mix of deliveries and normal seasonal variation,” he said.
To further strengthen profitable growth, Metso has targeted the exploitation of the favourable market situation by, for example, strengthening its global presence close to the customers. It will also improve its supply chain management globally. De-bottlenecking investments target improved delivery capability and customer service.
According to Eloranta, continuous improvement of productivity and operational quality are key matters for profitability development. Additionally, Metso is developing its business processes and supporting information systems.
”Growth will also require business renewal. We see great potential in, for example, environmental and service business development,” Eloranta said. Metso will also consider corporate acquisitions that complement its current product and service offering or strengthen its geographical presence.
www.metso.com
ENDS