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Investing.com -- Metso Oyj (HE:METSO) reported second-quarter results on Wednesday that fell short of analyst expectations, with adjusted EBITA missing consensus by 15% due to unfavorable revenue mix and ERP implementation costs.
The Finnish mining equipment manufacturer posted adjusted EBITA of €171 million, with margins declining 200 basis points year-over-year to 14.1%. Group sales remained flat at €1,213 million compared to the same period last year.
The company attributed approximately €15 million of the earnings miss to adverse revenue mix, while additional costs related to ERP implementation accounted for about €10 million, split between the Minerals segment and Head Office.
Operating cash flow came in at €147 million, significantly below estimates, driven primarily by a working capital outflow of €36 million. Net debt increased to €1,285 million, with a net debt to EBITDA ratio of 1.5x.
Order intake showed some positive momentum, rising 6% year-over-year to €1.234 billion, though still slightly below consensus expectations. On an organic basis, orders increased by 10%.
In the Minerals segment, which represents the bulk of Metso’s business, sales reached €892 million while orders grew 7% year-over-year. The segment’s adjusted EBITA margin declined 130 basis points to 16.0%.
The Aggregates division reported sales of €320 million, missing estimates by 4-5%. Orders increased 5% year-over-year, but adjusted EBITA fell 18%, with margins dropping 240 basis points to 14.1%.
Metso maintained its previous outlook, expecting market activity in both Minerals and Aggregates segments to remain at current levels.
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