Valmet’s Half Year Financial Review January 1 – June 30, 2021: Orders received increased to EUR 1.2 billion and Comparable EBITA to EUR 95 million in the second quarter

January–June 2021: Orders received and Comparable EBITA increased
- Orders received increased 26 percent to EUR 2,540 million (EUR 2,013 million).
----- Orders received increased in the Paper, Pulp and Energy, and Automation business lines, and remained at the previous year's level in the Services business line.
----- Orders received increased in EMEA, North America, China and South America and decreased in Asia-Pacific.
- Net sales remained at the previous year’s level and amounted to EUR 1,801 million (EUR 1,740 million).
----- Net sales increased in the Paper business line, remained at the previous year's level in the Services business line, and decreased in the Automation, and Pulp and Energy business lines.
- Comparable earnings before interest, taxes and amortization (Comparable EBITA) were EUR 175 million (EUR 128 million), and the corresponding Comparable EBITA margin was 9.7 percent (7.4%).
------ Comparable EBITA increased due to higher gross profit.
- Earnings per share were EUR 0.81 (EUR 0.49).
- Items affecting comparability amounted to EUR 11 million (EUR -7 million).
- Cash flow provided by operating activities was EUR 328 million (EUR 324 million).

Guidance for 2021
Valmet reiterates its guidance issued on April 16, 2021, in which Valmet estimates that net sales in 2021 will increase in comparison with 2020 (EUR 3,740 million) and Comparable EBITA in 2021 will increase in comparison with 2020 (EUR 365 million).

Short-term market outlook
Valmet estimates that the short-term market outlook for services has improved to good/satisfactory (previously satisfactory). Valmet reiterates the good short-term market outlook for automation, pulp, board and paper, and tissue and the weak market outlook for energy.

President and CEO Pasi Laine: Order backlog increased to a new record
"Valmet’s orders received increased to EUR 1,228 million in the second quarter of 2021. Orders received increased in all of Valmet’s four business lines. In the Paper business line, the quarterly order intake reached a new record and amounted to EUR 440 million. Orders received in Pulp and Energy increased to EUR 326 million. In the stable business (Services and Automation business lines), orders received increased to EUR 487 million, when including Automation package sales to capital projects. This means that the stable business orders received were now at the same level as in the second quarter of 2019, before the COVID-19 pandemic. Our order backlog increased to a record high of EUR 4,019 million, which is EUR 762 million higher than at the end of 2020.

Net sales remained at the previous year’s level and Comparable EBITA increased. The Comparable EBITA margin was 10.1 percent.

On July 2, Valmet announced the plan to combine Valmet and Neles through a merger. The combination is subject to, among other things, approval by the Extraordinary General Meetings of Valmet and Neles, as well as obtaining of merger control and other regulatory approvals.”