Interim reports Valmet’s order book to a new record, operating profit increased by 19 percent

Valmet’s earnings guidance for this year remains unchanged, and the company estimates that both its net sales and operating profit will increase from last year.

Engineering company Valmet’s operating profit increased by 19 percent in the third quarter. The company’s operating profit in July – September was EUR 95 million, compared to EUR 79 million in the corresponding period last year. The company’s net sales increased by 12 percent from EUR 832 million to EUR 935 million.

The company says its orders received increased by 58 percent to EUR 1,107 million. According to Valmet, orders increased in Asia-Pacific, North America and EMEA, Europe, the Middle East and Africa. Orders received in South America remained at the previous year’s level, in China they decreased.

“Orders received increased in all business lines,” says the CEO Pasi Laine in the interim report.

“Our order backlog reached a record level of EUR 4.2 billion and is EUR 942 million higher than at the end of 2020.”

Valmetin earnings guidance for this year remains unchanged. The company estimates that net sales will increase this year from EUR 3,740 million last year. Valmet also expects the result to grow this year from last year’s EUR 365 million.

The company estimates that the short-term market outlook for services has improved and the short-term market outlook for tissue paper has deteriorated satisfactorily.

In its interim report, Valmet reiterates the good short-term market outlook for automation, pulp, and board and paper, as well as the weak short-term market outlook for energy.

Valmetin and valve company Neleks merger agreement was signed in July, and the merger sealed in September. CEO Laine says the planned Effective Date of the merger is January 1, 2022. It still requires the approval of the competition authorities, so changes are possible.

Until the completion of the merger, Valmet and Neles will conduct their business as separate and independent companies, the interim report states.

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