Metso Corp. (MXCYY.PK) said that, in preparation for its planned demerger, its board has approved the strategy, organization, and financial targets of the new Metso.
Upon the demerger, Metso's core customer industries will be mining, construction as well as oil and gas.
In Automation, Metso will continue to serve the pulp and paper industry and Metso will also have a close co-operation with Valmet Corporation through a strategic partnership.
The company said it intends to improve its profitability by growing its services business, as well as developing its operational excellence and increasing its internal integration.
Metso has provided long-term financial targets after the demerger, expecting that earnings per share will grow faster than net sales, net sales growth will exceed market growth. The company expects EBITA margin before non-recurring items to be 11-16%, and Services net sales annual growth of more than 10% on average.
Upon closing of the demerger, Metso will have two reporting segments: Mining and Construction and Automation. Valmet Automotive and the Group Head Office will be reported separately.
As of October 2, 2013, the Metso Executive Team will consist Matti Kähkönen, President and CEO (Chairman) Harri Nikunen, CFO; Andrew Benko, President, Mining and Construction, until his retirement on December 31, 2013; João Ney Colagrossi, President, Mining and Construction from January 1, 2014 onwards; Perttu Louhiluoto, President, Automation; Kalle Reponen, SVP, Strategy and M&A; and Merja Kamppari, SVP, HR.
Metso said that Colagrossi, currently President, Services Business Line, Mining and Construction, will be responsible for the development of the Metso Group's overall services business until he takes up position as the head of Mining and Construction. His successor in the services position will be nominated later.
In a separate press release, Metso said that its board has approved the strategy, organization, and financial targets for the new Valmet Corporation. Valmet will focus on delivering technology and services globally to industries that use bio-based raw materials. Valmet's main customer industries are pulp, paper, and energy.
According to the company, Valmet's operating model will consist of three business lines, five areas, and four support functions. The business lines will be Services, Pulp and Energy, and Paper; and the geographical areas will be North America, South America, EMEA, Asia-Pacific, and China. The four main support functions will be Finance, Strategy and Operational Development, HR, and Communications and Marketing.
Metso's Board of Directors has set financial targets for Valmet. It expects that Valmet's net sales growth to exceed market growth. Valmet's EBITA before non-recurring items is expected to be 6-9%.
Valmet Corporation's Executive Management Team will consist of President and CEO Pasi Laine and the heads of its business lines, geographical areas, and four key support functions.
Metso said that as of January 2014, its Pulp, Paper and Power business will serve its customers with an even more focused and competitive approach as an independent, listed company, Valmet Corporation.
| || |
| To receive FREE breaking news email alerts for METSO and others in your portfolio|
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org