Finnish mining equipment maker Metso Outotec on Wednesday missed expectations for second-quarter operating profit but reported a jump in orders driven by rebounding metals markets and broad economic recovery.
The group’s order intake, an indication of future revenue, grew 43% from the pandemic-hit quarter last year to 1.36 billion euros ($1.61 billion).
“Market activity is at a very high level which is visible in our orders,” chief executive Pekka Vauramo told Reuters. He added, however, that the coronavirus pandemic and container shortage still had an impact, weighing especially on Metso’s maintenance business.
While equipment orders were strong, the mineral services, which have the highest backlog, were hit by logistics problems and restructuring after technology company Outotec acquired Metso’s minerals business in June 2020.
Vauramo said he saw strong demand continuing and the company returning to normal services business by the end of the year.
Metso’s shares were flat in early morning trading.
“Metso is still not firing on all cylinders as most of the maintenance business is done in areas still heavily hit by the pandemic. Lifting travel restrictions will boost revenue and profitability,” analyst Anssi Raussi from OP markets said.
Metso’s April-June operating profit rose to 97 million euros from 89 million last year, missing the 129.5 million euros in a Refinitiv poll of analysts.
Following the merger of mining equipment businesses, Metso’s valve-making division became Neles, which is being acquired by forestry equipment maker Valmet.
($1 = 0.8440 euros)
(By Essi Lehto and Tarmo Virki; Editing by Louise Heavens and Tomasz Janowski)
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