US aggregates industry helps Metso Outotec Q1 sales growth
By Steve Ducker03 May 2023
Sustainable technology specialist Metso Outotec has had a successful first quarter of 2023, with the North American aggregates market contributing to increased orders, sales and operating profit.
The Finland-based company – which recently announced it has completed its wind down of business in Russia – reported a 22% year on year increase in sales for the first quarter of 2023, and said it expects market activity to remain at the same level for the next six months.
Sales in the January to March period grew by 22% to €1,164 million (US$1,284 million), with operating profit at €197 million ($217 million), or 13.9% of sales compared to 12% in 2022. Orders received rose by 8% to €1,533 million ($1,691 million).
President and CEO Pekka Vauramo said: “All segments contributed to the sales growth of 22%, and Planet Positive [a portfolio of more than 100 products relating to carbon footprint and net zero] sales grew 45% year-on-year to €1,367 million ($1,508 million) on a rolling 12-month basis.
“In addition to the growth in sales and orders, our profitability strengthened significantly compared to the first quarter of 2022. Adjusted EBITA (earnings before interest, tax and amortisation) amounted to €215 million ($237 million), which is 37% higher than in the first quarter of 2022.
“The adjusted EBITA margin of 15.2% was at our targeted level for the first time and shows continuous improvement, driven by our successful measures in managing inflation and cost control.”
The company’s market outlook said: “Metso Outotec expects the overall market activity to remain at the current level, including the normal seasonality in the aggregates market.”
Also in the first quarter, Metso Outotec announced it had started plans to divest two businesses, Metals and Chemical Processing, and Ferrous and Heat Transfer.