Interim reports | Metso Outotec’s operating profit is in the red due to expenses related to the downturn in Russian business, otherwise a strong quarter

Economic|Interim reports

Mining Technology Company Metso Outotec’s operating profit fell into the red in April–June due to a one-time expense related to the downturn in business in Russia. Otherwise, the company reports a strong quarter. Orders and turnover increased.

The operating profit for the second quarter was 13 million in loss, while a year ago it was 97 million in profit. According to the company, the result was a loss due to a one-time expense of 150 million euros related to the downsizing of the business in Russia.

Managing director Pekka Vauramon according to the order collection in the second quarter of the year was strong. Vauramo also considers the result generally good, although the high costs of raw materials, components, logistics and energy caused some pressure.

The company expects strong activity in the mining market to continue in the second half of the year, despite the fact that metal prices have recently fallen from their peak readings.

Capercaillie Outotec has scaled back its business and customer contracts in Russia in accordance with the previously announced plan. The company’s deliveries to non-sanctioned customers were 67 million euros in the second quarter.

At the beginning of July, the company decided to record a one-time provision of 150 million euros, which consists of expenses related to the shutdown and restructuring. It is expected to cover the remaining Russian risks. The negative impact of the decline in contracts on the group’s order book at the end of June is said to be around EUR 380 million.

Metso Outotec does not accept new orders for delivery to Russia.