Metso calls aggregates market its softest

Metso Oyj, a Finland-based provider of equipment and technology for the mining, metals production and aggregates production sectors, has reported profits for its third quarter, despite what its CEO says is a “softening” in the aggregates sector.

“The market activity in the third quarter was in line with our expectations, with a stable demand in minerals and a softening in aggregates,” Metso President and CEO Pekka Vauramo says. In the aggregates sector, the company makes crushing and screening equipment used by quarry operators and concrete recyclers.

“Our proposal pipeline in the minerals equipment business is strong, and there is continued investment activity in electrification metals, such as copper, lithium and other battery minerals.

“The activity in our main aggregates markets was softer, with continued weakness in Europe and an anticipated short-term decline in North America. The softer aggregates market was the main reason for our group orders being 10 percent lower year-on-year. Minerals’ orders declined slightly, largely due to a negative currency impact.”

Despite sluggish sales, Metso remained profitable in this year’s third quarter and has been so throughout 2023.

“Our performance continued to strengthen, and both segments improved their profitability year-on-year,” Vauramo says. The group's adjusted earnings before interest, taxes and amortization (EBITA) margin increased to 16.1 percent from 15.5 percent in the third quarter of 2023 from one year ago.

“Sales of our Planet Positive products during the last 12 months grew 34 percent year-on-year to 1.49 billion euros ($1.59 billon),” Vauramo adds. “There continues to be strong demand for these sustainable products.

“We have also had an active year in acquisitions and made three announcements this year. This is in line with our strategy of expanding our offering and competencies and using our global presence to grow these acquired businesses to add value to our customers.

“As a result of our strategy process, we have evaluated our financial targets and decided to increase the adjusted EBITA margin target to more than 17 percent over the cycle from the previous target of more than 15 percent.”

In the wider market, Metso expects market activity to remain at the current level in both minerals and aggregates. In a previously published outlook, Metso expected market activity to remain at the current level in minerals and to decline slightly in aggregates.