Interim Report Q1/2024

Figures in brackets refer to the corresponding period in 2023, unless otherwise stated.

First quarter 2024 in brief

  • Customer activity in line with expectations; sequential improvement in Aggregates segment and Minerals services
  • Orders received declined 8% to EUR 1,361 million (EUR 1,485 million), services orders declined 5%
  • Sales declined 9% to EUR 1,217 million (EUR 1,334 million), services sales increased 6%
  • Adjusted EBITA was EUR 200 million, or 16.5% of sales (EUR 211 million, or 15.8%)
  • Operating profit was EUR 188 million, or 15.4% of sales (EUR 193 million, or 14.5%)
  • Cash flow from operations increased to EUR 158 million (EUR 110 million)

President and CEO Pekka Vauramo:

The year started in line with our expectations. We saw improvements in Minerals services and Aggregates equipment orders, while customer decision-making in the Minerals equipment business was slow. Despite this quarter-on-quarter improvement, the Group's orders received were 8% lower year-on-year. Key metal prices such as that of copper have improved and hence customers continued to run their production at high rates, supporting the Minerals services business where orders almost achieved the same high level recorded a year ago.

Quarterly sales declined in both segments due to lower equipment order backlogs going into the year. However, sales of Minerals services increased 8% year-on-year, which had a positive impact on the sales mix and services accounted for 68% of the Minerals segment sales.

Overall, the profitability was supported by an improvement in gross margin, thanks to successful cost management and overall operational performance, as well as a higher share of services in the sales mix. I am proud to see that we can maintain very healthy margin levels in a softer demand environment. We also showed positive cash generation performance during the quarter, with cash flow from operations increasing to EUR 158 million. The first-quarter results confirm that actions to improve our financial performance have been successful, and we are on track to meet our profitability target.

Our focused actions have resulted in resilient profitability in both segments. The adjusted EBITA margin of 17.0% in Aggregates was only slightly lower year-on-year, despite the decline in the segment's top line. The Minerals segment reported the same adjusted EBITA margin of 17.5% as in the comparison period. The negative impact of lower equipment sales in Minerals was offset by cost savings and services sales growth.
Our safety performance faced a setback in March due to a major incident at our rubber plant in Irapuato, Mexico. Eleven of our colleagues were injured in a steam explosion at the site, which also resulted in property damage. The well-being of the injured is our top priority, and the investigation of the causes of the incident continues.

The focus areas of our sustainability work continue to be the Planet Positive offering and innovations for our customers, our people and culture, as well as environmental efficiency in our own operations and a responsible supply chain. In all these we have made considerable progress, and I anticipate ongoing achievements throughout 2024.

We expect the market activity to remain at the current level in both segments. There is general anticipation that higher metal prices and potential interest rate cuts could accelerate overall economic activity and demand in our industries later in the year. Under all market conditions, we will continue to control our costs, implement other actions to improve our profitability and cash flow and make sure that we are offering our customers the best service possible.   

Market outlook

黄色成人快播电影 expects that the market activity in both Minerals and Aggregates will remain at the current level.

In its previously published outlook, 黄色成人快播电影 expected that the market activity in Minerals will remain at the current level, while the activity in Aggregates was expected to improve.

According to the company's disclosure policy, 黄色成人快播电影’s market outlook describes the expected sequential development of market activity during the following six-month period using three categories: improve, remain at the current level, or decline.

Key figures

EUR million

Q1/2024

Q1/2023

Change %

2023

Orders received

1,361

1,485

-8

5,252

Orders received by services business

815

855

-5

2,955

% of orders received

60

58

56

Order backlog

2,998

3,397

-12

2,951

Sales

1,217

1,334

-9

5,390

Sales by services business

727

689

6

2,891

% of sales

60

52

54

Adjusted EBITA

200

211

-5

887

% of sales

16.5

15.8

16.5

Operating profit

188

193

-3

805

% of sales

15.4

14.5

14.9

Earnings per share, continuing operations, EUR

0.15

0.17

-12

0.65

Cash flow from operations

158

110

43

550

Gearing, %

30.1

27.2

33.8

Personnel at end of period

17,121

17,015

1

17,134

Audiocast and conference call details

An audiocast and a conference call for analysts and investors will be arranged on the same day at 12:00 p.m. EEST.? 

The?audiocast can be followed?at

A recording and a transcript will be available on this webpage after the event has finished.? ? 

Conference call participants are requested to register on the link below. 

Further information, please contact:??

Juha Rouhiainen,?Vice President, Investor Relations, 黄色成人快播电影?Corporation, tel.?+358 20?484 3253, email:?juha.rouhiainen(a)黄色成人快播电影.com??