Metso has released its results for Q3 with mining services driving the sales in the Minerals Division.
This quarter saw the launch of the company’s new structure into two new reporting divisions – Minerals and Flow Control. The Minerals Division includes the company’s mining industry product lines, as well as serving the aggregates industry.
“Demand for mining equipment and projects remained weak,” said the company in its earnings report. The only bright spot was the services business, which saw order intake grow 8% to account for 67% of the divisions total orders received. Net sales in the services business totaled €357 million – 58% of the division’s total sales.
The success of the services business, however, could not fully compensate for negative trends elsewhere and, overall, order intake dropped 8% to €558 million with orders received from mining customers down 11% and from aggregates customers down 2%. EBITDA dropped to €74 million.
Over the year as a whole, Mining Division sales dropped 12% to €1.9 billion with sales related to mining equipment and projects down 16%, aggregates down 4% and services down 4%.
Order backlog in the Minerals Division stood at €14 billion, 10% lower than at the end of 2013. However, there were no major order cancellations or postponements during the period. The company expects 48% of the order backlog to be delivered in 2014. In addition, there are unbooked services orders extending over a number of years worth around €240 million.
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/23102014/world-coal-metso-reports-drop-in-mining-sales-in-q3-2014-coal1441/