Valmet: orders received increased, especially in the Paper business line
Valmet estimates that net sales in 2017 will increase in comparison with 2016 (EUR 2,926 million) and Comparable EBITA in 2017 will increase in comparison with 2016 (EUR 196 million).
General economic outlook
Global economic activity is picking up with a cyclical recovery in investment, manufacturing, and trade. World growth is expected to rise from 3.1 percent in 2016 to 3.5 percent in 2017 and 3.6 percent in 2018. Stronger activity, expectations of more robust global demand, reduced deflationary pressures, and optimistic financial markets are all upside developments. However, structural impediments to a stronger recovery and a balance of risks that remains tilted to the downside remain important challenges. (International Monetary Fund, April 18, 2017)
Short-term market outlook
Valmet estimates that the short-term market outlook has increased to a good level in services (previously satisfactory level) and decreased to a weak level in pulp (previously satisfactory level). Valmet reiterates the good short-term market outlook for energy, board and paper, and tissue, and the satisfactory short-term market outlook for automation.
Strong start to the year due to high order activity
President and CEO Pasi Laine: “The high customer activity in the last quarter of 2016 continued through the first quarter of 2017. Both the Services and Paper business lines had a record-high quarter in orders received, while also the Automation and Pulp and Energy business lines were able to increase orders received compared to last year. In Pulp and Energy, especially the energy market has been active. Due to the positive development in all business lines, Valmet’s orders received for the last twelve months now stand at EUR 3.3 billion, which is an all-time high level for the company. Following the high order activity, the order backlog has increased 18 percent from a year ago. The record-high order backlog of EUR 2.6 billion gives Valmet a strong start to the year”.