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[Nov 2005]
Progress on Profitability and Sales for Metso
Metso Corporation announced operating profit for the third quarter of 2005 of 95.5 million euro (9.1% of net sales) and operating profit for the first nine months of the year of 233.5 million euro (7.9% of net sales). Net sales for the first nine months totalled 2.967 billion euro, up 16%.
"Metso Automation's and Metso Minerals' profitability improvement has previously resulted mainly from internal programs, such as streamlined cost structure and business concept renewals. Now the net sales growth, as well, contributes to their profitability. I am also pleased with the profitability improvement in Metso Paper, which is now starting to see the benefits of the efficiency programs undertaken in the past two years," said Jorma Eloranta, President and CEO of Metso Corporation. "All in all, the third quarter was the best ever in Metso's history. We also estimate that 2005 will be the best year so far for Metso - but there is still a lot of development potential in all of our businesses."
Eloranta noted that the current performance level formed a good basis for the implementation of the new strategy, which targets profitable growth. "We have significantly enhanced our operational efficiency. For example, our productivity has improved substantially. At the same time, we have developed our supply chain to make the most of the strong demand in the rock and minerals processing sector as well as in the gas and energy industries."
He added that in 2006-2008, Metso would seek an annual increase in net sales of some 10% through organic growth and complementary acquisitions.
www.metso.com
ENDS