Finland's Metso Q3 orders jump as mining demand lifts minerals segment

By Reuters News


Overview

  • Finland-based mining tech provider's Q3 orders grew 28% yr/yr; sales up 3%

  • Adjusted EBITA rose 4% yr/yr; EPS from continuing operations fell 12%

  • Minerals segment drove order growth, supported by strong mining customer activity


Outlook

  • Company did not provide specific financial guidance for upcoming quarters or full year in its press release

  • Metso expects market activity in Minerals and Aggregates to remain at current level next 6 months

  • Metso sees high utilization in Minerals and customers preparing investments for longer-term demand


Result Drivers

  • MINERALS SEGMENT - Co said strong mining customer activity and favorable copper and gold prices drove 34% yr/yr order growth in Minerals, with equipment orders up 79%

  • AFTERMARKET SALES - Aftermarket sales grew 10% yr/yr and accounted for 57% of group sales, reflecting continued customer activity

  • AGGREGATES MARKETS - Aggregates orders rose 4% yr/yr, driven by European and North American markets; sales up 5% yr/yr


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

EUR 1.37 bln

Q3 EPS

EUR 0.15

Q3 Adjusted EBITA

EUR 230 mln

Q3 EBIT

EUR 197 mln

Q3 Orders

EUR 1.61 bln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 7 "hold" and 3 "sell" or "strong sell"

  • The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."

  • Wall Street's median 12-month price target for Metso Oyj is €18.50, about 13.4% above its October 21 closing price of €16.31

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago


Reuters Recommended Reads

  • Oct 20 - Switzerland's ABB Q3 revenue rises 14%, to form joint venture with Mitsubishi Electric

  • Oct 20 - Switzerland's Huber+Suhner 9-month sales rise on broad-based growth

  • Oct 20 - Switzerland's Comet Holding Q3 sales jump on AI, semiconductor demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital Com is an execution-only service provider. The present material must be regarded as marketing communication and should not be interpreted as investment research or investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page, then you do so entirely at your own risk