logo
Share SHARE
FONT-SIZE Plus   Neg

Metso Board Okays Strategy, Organization, And Financial Targets Of New Metso

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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Concept drawings for a giant U-shaped skyscraper in the New York City were released this week, which is deemed to be the longest building in the world. The concept, which is called Big Bend, would be a skinny, curved structure. The glass-lined tower would be in the shape of an upside U and will be running 4,000-feet-long from end to end on Billionaire's Row. Alaska Air Group Inc., which completed its $2.6 billion acquisition of Virgin America last year, said that the combined company will adopt Alaska Air's name and logo. The Virgin America name will be retired, "likely sometime in 2019," the airline added. Apple Inc. has agreed to acquire Workflow, an iOS app for automating tasks, as well as its development team for an undisclosed sum. Workflow is a personal automation tool that enables the user to drag and drop combination of actions to create workflows for the iPhone, iPad and Apple Watch.
comments powered by Disqus
Follow RTT