Valmet's Financial Statements Review January 1 - December 31, 2020: Net sales amounted to EUR 3,740 million and Comparable EBITA increased to EUR 365 million in 2020

Valmet's Financial Statements Review January 1 - December 31, 2020: Net sales amounted to EUR 3,740 million and Comparable EBITA increased to EUR 365 million in 2020

PR Newswire

HELSINKI, Feb. 4, 2021

HELSINKI, Feb. 4, 2021 /PRNewswire/ --

- Valmet Oyj's stock exchange release on February 4, 2021 at 1:00 p.m. EET
-
Figures in brackets, unless otherwise stated, refer to the comparison period, i.e. the same period of the previous year.

October-December 2020: Orders received decreased and Comparable EBITA increased

January-December 2020: Comparable EBITA increased

Dividend proposal

The Board of Directors proposes for the Annual General Meeting that a dividend of EUR 0.90 per share be paid. The proposed dividend equals to 58 percent of the net result.

Guidance for 2021

Valmet estimates that net sales in 2021 will remain at the previous year's level in comparison with 2020 (EUR 3,740 million) and Comparable EBITA in 2021 will remain at the previous year's level in comparison with 2020 (EUR 365 million).

Short-term market outlook

Valmet estimates that the short-term market outlook in automation has improved to good (previously good/satisfactory), the short-term market outlook in tissue has improved to good (previously satisfactory), and the short-term market outlook in energy has decreased to weak (previously satisfactory). Valmet reiterates the good short-term market outlook for pulp, and board and paper, and the satisfactory/weak short-term market outlook for services.

President and CEO Pasi Laine: Comparable EBITA increased for the seventh consecutive year

"Valmet's orders received amounted to EUR 3.65 billion in 2020. Orders received remained at the previous year's level of over EUR 1 billion in Paper, and decreased in the Pulp and Energy and Services business lines. Automation orders received, including package sales to capital projects, remained at the previous year's level. While the COVID-19 related travel restrictions and lower capacity utilization in graphical paper mills had a negative impact on Services order intake, the pandemic did not cause major impacts on Valmet's capital business. In 2020, the market activity was especially strong in China, where 2020 was a record year for Valmet.

Our net sales amounted to EUR 3.74 billion in 2020. Net sales increased in the capital business and remained at previous year's level in the stable business. Comparable EBITA increased 16 percent to EUR 365 million. This represents 9.8 percent of net sales, close to our new target range of 10-12 percent. Our whole organization performed well during this exceptional year and found new ways to operate. Many new digital tools and solutions to do business and serve our customers were introduced, and they can be utilized to improve Valmet's and customers' processes also after the pandemic.

In recent years, Valmet has followed its acquisition strategy of making well-considered acquisitions with a clear industrial logic. In 2020, Valmet strengthened its board and tissue technology offering by acquiring PMP Group in Poland. The former PMP's offering of small and medium-sized tissue machines and board and paper machine rebuilds complements Valmet's offering for wide and fast machines and rebuilds. In June 2020, Valmet acquired a 14.9 percent ownership in Neles and gradually increased its ownership to 29.5 percent of the company. The potential merger of Valmet and Neles would create a Nordic-based global leader with a unique offering for global process industries and with excellent potential for long-term shareholder value creation.

Valmet's business is supported by favorable megatrends, we have a solid order backlog and have been able to improve our profitability every year since the demerger at the end of 2013. Valmet is starting the year 2021 from a good position."

Key figures1

EUR million

Q4/2020

Q4/2019

Change

2020

2019

Change

Orders received

940


1,009

-7

%

3,653


3,986

-8

%

Order backlog2

3,257


3,333

-2

%

3,257


3,333

-2

%

Net sales

1,167


1,103

6

%

3,740


3,547

5

%

Comparable earnings before interest, taxes and amortization (Comparable EBITA)

146


118

24

%

365


316

16

%

% of net sales

12.5

%

10.7

%


9.8

%

8.9

%


Earnings before interest, taxes and amortization (EBITA)

147


119

23

%

355


315

13

%

% of net sales

12.6

%

10.8

%


9.5

%

8.9

%


Operating profit (EBIT)

135


110

23

%

319


281

13

%

% of net sales

11.6

%

9.9

%


8.5

%

7.9

%


Profit before taxes

133


105

26

%

307


269

14

%

Profit for the period

100


81

24

%

231


202

15

%

Earnings per share, EUR

0.67


0.54

24

%

1.54


1.35

15

%

Earnings per share, diluted, EUR

0.67


0.54

24

%

1.54


1.35

15

%

Equity per share, EUR2

7.60


6.95

9

%

7.60


6.95

9

%

Cash flow provided by operating activities

114


182

-37

%

532


295

81

%

Cash flow after investments

40


161

-75

%

-60


58


Return on equity (ROE) (annualized)




21

%

20

%


Return on capital employed (ROCE) before taxes (annualized)




22

%

23

%


Equity to assets ratio2




39

%

41

%


Gearing2




13

%

-9

%


1.The calculation of key figures is presented on page 49.

2. At end of period.

 

Orders received, EUR million

Q4/2020

Q4/2019

Change

2020

2019

Change

Services

342


395


-13

%

1,356


1,459


-7

%

Automation

96


96


1

%

334


359


-7

%

Pulp and Energy

291


320


-9

%

934


1,125


-17

%

Paper

211


199


6

%

1,029


1,043


-1

%

Total

940


1,009


-7

%

3,653


3,986


-8

%



Order backlog, EUR million

As at Dec 31,2020

As at Dec 31,2019

Change



As at Sep 30,2020

Total

3,257


3,333


-2

%



3,311




Net sales, EUR million

Q4/2020

Q4/2019

Change

2020

2019

Change

Services

402


400


0

%

1,327


1,374


-3

%

Automation

117


120


-3

%

335


341


-2

%

Pulp and Energy

286


315


-9

%

1,003


919


9

%

Paper

362


267


36

%

1,076


913


18

%

Total

1,167


1,103


6

%

3,740


3,547


5

%


News conference and webcast for analysts, investors and media

Valmet will arrange a news conference in English as a live webcast at https://valmet.videosync.fi/2020-q4 on Thursday, February 4, 2021 at 2:00 p.m. Finnish time (EET). President and CEO Pasi Laine and CFO Kari Saarinen will be presenting the results.

Recording of the webcast will be available shortly after the event at the same address.

It is possible to take part in the news conference through a conference call. Conference call participants are requested to dial in at least five minutes prior to the start of the conference at

United Kingdom +44 3333000804

France +33 170750711

Germany +49 6913803430

Norway +47 23500243

Sweden +46 856642651

United States +1 6319131422

The participants will be asked to provide the following conference PIN: 86044798#. All questions should be presented in English.

The event can also be followed on Twitter at www.twitter.com/valmetir.

Due to COVID-19 pandemic, the news conference cannot be attended in person.

Further information, please contact:

Pekka Rouhiainen, Director, Investor Relations, Valmet, tel. +358 10 672 0020
Kari Saarinen, CFO, Valmet, tel. +358 50 317 1830
VALMET
Kari Saarinen
CFO
Pekka Rouhiainen
Director, Investor Relations

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.

Valmet's net sales in 2020 were approximately EUR 3.7 billion. Our 14,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

Read more www.valmet.com, www.twitter.com/valmetglobal

Follow Valmet IR on Twitter www.twitter.com/valmetir

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Valmet`s Financial Statements Review 2020

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